Hawaii allows pay cards again

Hawaii has approved the use of pay cards, effective with the payroll period beginning on September 1, 2014. Employers cannot pay wages by use of a pay card unless the following requirements are satisfied: • The employee shall be given the option of receiving the employee’s wages by direct deposit to a depository account of […]

Deductions to pay employee credit card charges authorized

The Ninth Circuit Court of Appeals has ruled that deductions for unpaid balances on company-guaranteed credit cards from paychecks issued to terminated employees did not violate the federal Fair Labor Standards Act (FLSA). Key to the court’s decision was the fact that the wages actually paid after the credit card deductions exceeded the FLSA’s overtime […]

Windsor impacts federal-state unemployment programs

The decision of the United States Supreme Court in United States v. Windsor impacts the federal-state unemployment compensation (UC) program. Unemployment Insurance Program Letter (UIPL) No. 14-14 describes the impact for state UC agencies and the employers they serve. Section 3306(c)(5) of the Federal Unemployment Tax Act (FUTA), excludes from the definition of “employment” service […]

Massachusetts minimum wage to increase to $11 an hour by 2017

Massachusetts has approved “An Act Restoring the Minimum Wage and Providing Unemployment Insurance Reforms.” The law gradually raises the minimum wage to $11 over three years, lowers unemployment insurance (UI) costs for employers across the state, strengthens safety protections for workers and makes permanent the multi-agency task force charged with combatting the underground economy. The […]

Illinois minimum wage hike to be decided by voters

Illinois approved legislation that will leave the decision of raising the state minimum wage to voters. House Bill 3814 directs the State Board of Elections to place the following advisory question on the November 4, 2014, General Election ballot: “Shall the minimum wage in Illinois for adults over the age of 18 be raised to […]

Sup. Ct. denies petition for review in employment taxes case

The U.S. Supreme Court has denied a petition for review in Cencast Services, L.P., CA-FC. A payroll services company that was a statutory employer for purposes of paying, withholding and paying over employment taxes was not a common-law employer for purposes of applying limits on the wages that were subject to those taxes. The obligation […]

IRS issues final regs on disregarded entities: FICA, FUTA exceptions

The IRS has released final regulations relating to disregarded entities, including qualified subchapter S subsidiaries. The regulations affect entities responsible for collecting that tax and owners of those entities. The IRS issued final and temporary regulations on the excise tax in 2012 (T.D. 9596), as well as proposed regulations (NPRM REG-125570-11). These regulations treated disregarded […]

Ohio issues new withholding tables for July 1, 2014

The Ohio Department of Taxation (DOT) has issued new wage- bracket, percentage, and optional method withholding tables to be used for wages paid on and after July 1, 2014. The new tables reflect recently approved legislation that changed the personal income tax rates, among other things (see CCH Payroll Management Guide Report Letter 2360, dated […]

Yonkers, N.Y. issues new withholding tables for August 1, 2014

Beginning with tax year 2014, the Yonkers resident personal income tax surcharge is increased from 15% to 16.75%. Effective for payrolls made on or after August 1, 2014, employers must use the revised withholding tax tables and methods to compute the amount of Yonkers resident personal income taxes to be withheld from employees. Form IT-2104 […]

Idaho re-issues new 2014 withholding tables

Idaho has re-issued the new withholding tables. The exemption amount was wrong in the tables issued previously. The correct amount is $3,950. The tables are effective prospectively. No catch up or recapture is necessary. All of the tables are reproduced in this CCH Payroll Management Guide at ¶5878 and ¶5879. The Idaho personal income tax […]