The Alabama Department of Revenue has finalized its proposed change to the due date for filing Forms W-2 with the state. The due date has been moved from the current date of February 28 to January 31. The rule was finalized on March 2, 2015 and takes effect on March 3, 2015. Since the rule date was changed so late in 2015 it doesn’t affect the 2014 Form W-2 filed in 2015. The due date is still February 28th. However effective with the Forms W-2 for 2015 filed in 2016 the deadline will be January 31, 2016.
The Governor has signed legislation that will lower income taxes for people who earn between $21,000 and $75,000 per year. The lower rates will become effective January 1, 2016. The current 2015 rates will stay in effect for the remainder of the year.
New York’s Acting Labor Commissioner Mario J. Musolino issued an Order on February 24, 2015, responding to the report and recommendations of the 2014 Hospitality Wage Board, accepting many of the Board’s recommendations including the highest ever wage for tipped workers in New York—$7.50 per hour effective December 31, 2015.
Tipped workers are paid a required base rate. Their tips added to that base pay must equal or exceed the minimum wage.
The Department of Labor accepted the following recommendations from the Wage Board:
Uniform tip amounts and criteria for all tipped workers in the hospitality industry, so that the same rates apply to food service workers, service employees and service employees in resort hotels.
Increase the tipped cash wage amounts from their current rates of $4.90, $5.00 and $5.65, which have not increased since 2011, to $7.50 per hour, effective December 31, 2015.
If the legislature enacts a separate minimum wage rate for New York City, then the cash wage for such workers must be increased by $1, effective on the date that such separate minimum wage rate for New York City takes effect.
A review of whether the system of cash wages and tip credits should be eliminated.
I am getting lots of questions on whether or not there is also a new Schedule B to go along with the 2015 Form 941–There is not. The Schedule B does not need to be updated every year since there is no date on it. In fact the form was dated 2008 until 2014 when they finally updated it just because everyone was getting confused. I checked the IRS’ draft forms and there are no drafts pending either. So for now use the 2014 version of the Schedule B.
The IRS has released the 2015 version of the Form 941 and the accompanying instructions. There appear to be no changes to either the form from the draft version we saw late last year or to the general instructions. I will be reviewing the form later today as well as the instructions so if there are any minor changes I will post them tomorrow.
The Kentucky Department of Revenue has announced that their new Withholding Return and Payment System (WRAPS) is now open for business. Employers may now file their withholding tax returns electronically. Forms that may be filed using the WRAPS include Forms K-1, Employer’s Return of Income Tax Withheld, and K-3, Employer’s Return of Income Tax Withheld (Annual Reconciliation). Employers can file their returns, view and/or amend previously filed online returns, request refunds and credits, and use the Enterprise Electronic Payment System to pay withholding tax.
Effective for tax year 2014, all employers, including those that will file the 2014 Forms W-2 electronically with the West Virginia State Tax Department, must also file Form WV/IT-103, Annual Reconciliation of West Virginia Income Tax Withheld. Previously, those employers filing Forms W-2 electronically (required for employers filing 50 or more W-2 forms) were exempted from filing Form WV/IT-103.
The North Carolina Department of Revenue has issued further guidance on using the new Form NC-4 NRA, Nonresident Alien Employee’s Withholding Allowance Certificate.
The IRS has released the 2015 version of the Form W-2. No changes from the 2014 version.
Form W-4MN is the Minnesota equivalent of federal Form W-4. In some situations, employees must complete Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate, in addition to federal Form W-4.
Recently, Section 2 of Form W-4MN was updated to include an option to claim exempt from Minnesota withholding on wages for Minnesota National Guard pay or active duty U.S. military pay. Note: This update does not affect civilian wages earned by military members.
When is this form necessary?
Employees must complete Form W-4MN if they:
- choose to claim fewer Minnesota withholding allowances than for federal purposes;
- claim more than 10 Minnesota allowances;
- request additional Minnesota withholding to be deducted each pay period; or
- claim to be exempt from Minnesota income tax withholding, and meets one of the requirements listed in the instructions for Form W-4MN.
There is no need for the separate Minnesota form if your employee claims 10 or fewer withholding allowances, does not want additional Minnesota tax withheld and chooses the same number of allowances for both state and federal taxes. Use the same number of allowances reported on Form W-4 to determine Minnesota withholding unless your employee claims fewer Minnesota withholding allowances and provides you Form W-4MN (Minnesota allowances cannot exceed federal allowances).