Arkansas issues 2015 withholding tables

Arkansas has released wage-bracket and computer formula withholding tables effective for wage paid on or after January 1, 2015. The tables are reproduced in the CCH Management Guide at ¶5468 and ¶5469. The supplemental wage rate will be 6.9%. (State of Arkansas Department of Finance and Administration, Withholding Tax Instructions for Employers for Use in […]

Georgia caps tax rate on ballot

The Georgia General Assembly passed a resolution proposing an amendment to the Constitution to prohibit raising the rate of state income taxes above the rate that is in effect on January 1, 2015 (6%). The proposal will be placed on the ballot in the upcoming election on November 4, 2014. (S.R. 415, Georgia General Assembly, […]

Employer can’t designate payment for employee’s tax

If an employer makes a voluntary partial payment of overdue taxes, the IRS can generally apply the taxes as it sees fit. However, if the employer provides specific directions as to how the payment should be applied, the IRS will follow those directions that are in Rev. Proc. 2002-26, 2002 C.B. 746. So, for example, […]

Alabama EFT threshold reduced

Effective October 20, 2014, all employers and withholding agents submitting 25 (previously, 50) or more Forms W-2 and/or information returns must submit such information and Form A-3 electronically through the Alabama Department of Revenue’s website. (Alabama Reg. 810-3-75-03, filed September 15, 2014, effective October 20, 2014.) For more information on this and other topics, consult […]

California issues publication on nonwage audits

The California Franchise Tax Board (FTB) has released a new publication on its process for conducting audits of income tax withholding agents to determine if they are in compliance with California’s nonwage withholding requirements. The publication covers the following topics: the scope of audits; powers of attorney; record-keeping requirements; initial contact letters; field audit entrance […]

Several states’ voters will get to decide state minimum wage

Whether or not to increase the minimum wage will be a question placed before voters in five states in the upcoming November 4, 2014, General Election. Alaska: Ballot Initiative 3 (13 MINW). This ballot initiative proposes to adjust the state minimum wage to $8.75 per hour January 1, 2015; $9.75 per hour effective January 1, 2016; […]

Corporation had to pay penalties for reclassified workers

A corporation was liable for employment taxes for workers reclassified as its employees. The corporation had treated all of its workers as independent contractors, and it had not issued Forms W-2 to the workers, nor had it filed Form 941, Employer’s Quarterly Federal Tax Return, or Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return for the […]

Reminder: Employers must give time off to vote in some states

The coming general election in November again focuses attention on state laws allowing employees to take time off to vote, with or without pay. Laws governing time off to vote can be found in approximately 30 states. In many states that allow time off to vote, employers are prohibited from making deductions from an employee’s […]

Washington minimum wage will increase to $9.47 in 2015

Washington’s minimum wage will increase 15 cents to $9.47 an hour beginning January 1, 2015, the Department of Labor and Industries announced today. The Department calculates the state’s minimum wage each year at this time as required under Initiative 688, which Washington voters approved in 1998. The change reflects a 1.59 percent increase in the […]

Ohio minimum wage will increase to $8.10 per hour on January 1

The minimum wage in Ohio is scheduled to automatically increase to $8.10 per hour on January 1, 2015, for non-tipped employees and to $4.05 per hour for tipped employees. The increased minimum wage will apply to employees of businesses that have annual gross receipts of more than $297,000 per year. Currently, the state’s minimum wage […]