New Jersey enacts paid sick leave legislation

New Jersey Governor Phil Murphy on May 2 signed into law expansive paid sick leave legislation. New Jersey now joins a select group of states—nine plus the District of Columbia—that have enacted paid sick leave to provide earned compensation for workers who miss work due to illness or needing to take care of a sick […]

Nebraska has a personal exemption credit, standard deduction

Recently enacted Nebraska legislation creates a personal exemption credit, establishes a Nebraska standard deduction, and adjusts personal income tax brackets based on the Consumer Price Index for All Urban Consumers (CPI-U). Personal exemption credit. A personal exemption credit is created, beginning with tax year 2018. The credit is multiplied by the total child credits and […]

Michigan deadline changed, E-Filing requirement enacted

Beginning with the 2018 tax year, the Michigan withholding statement and annual reconciliation return are due on January 31. For tax years before 2018, the deadline was February 28. Employers with more than 250 employees must begin filing their annual or report electronically. (Act 118 (H.B. 5091), Laws 2018, approved and effective April 25, 2018, […]

Inflation adjusted HSA limit changed back to $6,900

For 2018, taxpayers may treat $6,900 as the annual limitation on the deduction for an individual with family coverage under an HDHP after all. The IRS initially released inflation adjustments for HSAs (and other tax items) in Rev. Proc. 2017-37, IRB 2017-21, 1252. Under that revenue procedure, the annual limit on deductions for an individual […]

Idaho issues new withholding tables for 2018

Idaho has issued new withholding tables for wages paid on and after January 1, 2018. Employers do not need to go back and readjust. Simply implement them as soon as possible. All of the tables will be reproduced in the Payroll Management Guide at ¶5878 and ¶5879 in a future release. The state now uses […]

Oklahoma changes reconciliation due date

The due date for the annual personal income withholding tax reconciliation return is changed from February 28 to January 31. (Ch 66, H.B. 3156, Laws 2018, approved April 23, and effective July 1, 2018. January 31.) Visit our News Library to read more news stories.

North Carolina updates withholding booklet; no new tables

North Carolina has updated its withholding tables publication. Child tax deduction. During the 2017 legislative session, the state converted North Carolina’s child tax credit to a child deduction. The new “Child Deduction Amount” varies based on a taxpayer’s filing status and adjusted gross income (AGI). The “Child Deduction Amount” expands the number of taxpayers who […]

Indiana updates substitute forms guidelines

Indiana has updated its substitute form guidance. Technical changes were made in this version of the notice to delete a previous requirement that software developers provide the completed spreadsheet referenced in the specifications in order to receive a user ID and password for access to the Department’s software developer webpage. (Indiana Department of Revenue, Departmental […]

IRS issues guidance on tip reporting

Generally, income received in the form of tips is taxable. The IRS has issued some guidance to help employees correctly report the income they receive as a tip: Use the Interactive Tax Assistant. The ITA tool is a tax-law resource that asks employees a series of questions and provides a response based on the answers. […]

USCIS says E-Verify program is modernized

On April 23, USCIS announced the E-Verify program modernized its system to improve users’ experience, reduce errors, and increase the speed and accuracy of the employment eligibility verification process. Improvements include: Enhanced usability features to help users enter correct information and make E-Verify more user friendly: Expanded helper text and visuals to give more details […]