Potential implications of expanding private disability insurance

Social Security Disability Insurance (SSDI), which is administered by the SSA, provides financial and other assistance to qualifying individuals who are unable to work due to their disabilities. SSDI is primarily funded by employee and employer payroll taxes that are placed in the Disability Insurance Trust Fund, which is currently projected not to be able […]

IRS highlights WOTC for employers

IRS highlights WOTC for employers The IRS is reminding employers to avail of the Work Opportunity Tax Credit (WOTC). The WOTC is generally based on wages paid to eligible workers. Special calculation rules apply for summer youth, veterans and long-term family assistance recipients. Categories. There are different categories of WOTC-eligible workers. The newest category, qualified […]

Here’s the status of DOL’s upcoming regulatory agenda plans

The Office of Information and Regulatory Affairs has the U.S. Department of Labor’s upcoming unified regulatory agenda on the Internet. The agenda demonstrates the Administration’s ongoing commitment to fundamental regulatory reform and a reorientation toward reducing unnecessary regulatory burdens on the American people. Defining and delimiting the exemptions for executive, administrative, professional, outside sales and […]

IRS issues guidance on amounts exempt from levy

The IRS has issued guidance on figuring the amounts that are exempt from levy. The guidance was issued because the amounts are determined using exemptions rather that dependents due to the Tax Cuts and Jobs Act of 2018 (P.L. 115-97). The notice is reproduced in this Report Letter on pages 10—11. (IRS Notice 1439, Figuring […]

Kentucky issues new withholding tables

In response to recent legislation (see Payroll Management Guide Report Letter 1517/2553, dated April 24, 2018), Kentucky has issued new wage-bracket and formula withholding tables. Kentucky enacted a new 5% flat tax rate. Due to the change, a flat rate withholding formula has been developed. In the new formula, exemptions are not taken into account, […]

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 […]