South Carolina issues 2017 withholding tables

South Carolina has issued new wage-bracket and computer formula withholding tables for wages paid on and after January 1, 2018. The tables will be reproduced in the Payroll Management Guide at 8248 and 8249 in a future release. The state is also reminding employers that 4th Quarter Withholding Returns (Oct-Nov-Dec 2017) and employers’ W2s are […]

Minnesota minimum wage to increase January 1, 2018

Minnesota’s minimum-wage rates will be adjusted for inflation beginning Jan. 1, 2018, to $9.65 an hour for large employers and $7.87 an hour for other state minimum wages. Under Minnesota law, the Commissioner of the Department of Labor and Industry is required to determine and announce the inflation-adjusted minimum-wage rate each year by Aug. 31. […]

Illinois Freedom to Work Act amended

The Illinois Freedom to Work Act has been amended to provide that “low-wage employee” means an employee whose earnings do not exceed the greater of the hourly rate equal to the minimum wage required by the applicable federal, state, or local minimum wage law or a specified amount per hour. Under prior law, the definition […]

Arizona withholding return due dates changed

Beginning with the 2017 withholding returns filed in 2018, the new due date for filing Arizona Form A1-R or Arizona Form A1-APR is January 31. In prior years the due date was February 28. The statements of withholding to employees (Form W-2) are also required to be furnished to employees by January 31. (Arizona Department […]

SIFL rates issued for the second half of 2017

The Department of Transportation has released the applicable terminal charge and standard industry fare level (SIFL) mileage rates for July 1, 2017, through December 31, 2017. These rates will be used by the IRS to determine the value of noncommercial flights on employer-provided aircraft. The terminal charge is $40.63. The SIFL rates are $.2222 per […]

Police officers not entitled to overtime for duty work on PDAs

Chicago police officers who alleged they were not compensated for off-duty work performed on their mobile electronic devices (BlackBerrys) were not entitled to recovery for such unscheduled overtime work, ruled the Seventh Circuit. Finding that the city did not know about the overtime work, and that the officers were not prevented or discouraged from submitting […]

IRS warns tax professionals of W-2 email scam

The IRS has alerted tax professionals to a recent increase in email scams targeting employee Forms W-2. In 2017, the IRS witnessed a surge in the number of businesses, public schools, universities, tribal governments and nonprofits victimized by the W-2 scam increase to 200 from 50 in 2016. Those 200 victims translated into several hundred […]

Profit sharing bonus properly excluded from regular rate

GEICO properly excluded a profit sharing bonus in the calculation of an employee’s regular rate for overtime purposes, ruled a federal district court in California in dismissing the employee’s overtime pay claims. As part of the clerical employee’s compensation, she received an annual bonus through a profit sharing plan. Generally, discretionary bonuses made pursuant to […]

Oregon governor signs workplace scheduling bill

Oregon Governor Kate Brown has signed a law that adds substantial work scheduling stability to employees working in the retail, hospitality, and food services industries. The governor signed the law, Senate Bill 828, on August 8. It had cleared the Oregon Senate on June 22 with a 23-6 vote, and the House on June 29 […]

Requirements for reproduction/substitute forms corrected

The IRS has corrected Rev. Proc. 2017-39, I.R.B. 2017-26, 1286, which provided the specifications for the private printing of red-ink substitutes for the 2017 revisions of information returns, preparing acceptable substitutes of the official forms, and using official or acceptable substitute forms to furnish information to recipients. The procedure covers Forms 1096, 1097-BTC, 1098 series, […]