MA Issues SUI Wage Base and EMAC Rates for 2015

Massachusetts  2015 SUI taxable wage base increased to $15,000, up from $14,000 for 2014

Mailing of 2015 rate notices

The Massachusetts Department of Labor and Workforce Development issued the 2015 SUI tax rates to employers on January 31, 2015.  The protest deadline is June 20, 2015. Employers that disagree with the employer-specific figures used in computing their 2015 SUI tax rate may request a review in writing by June 20, 2015.

Employer Medical Assistance Contribution (EMAC) rates for 2015

Employers that paid the Employer Medical Assistance Contribution (EMAC) at a rate of 0.24% or 0.36% for calendar year 2014 will pay at a rate of 0.34% for 2015 up to a taxable wage base of $15,000 per employee.

 

IRS Revises FICA Refund Statement Requirements

In Notice 2015-5, the IRS explains the proposed revenue procedure that provides the requirements for employee consents used to support a claim for refund of employment taxes.  It permits electronic consents and requests comments about the consent process and requirements. The guidelines also require that the refund claim identify the basis for the refund and it must be signed under penalty of perjury.

GA 2015 Employer Guide Now Available

The Georgia Department of Revenue has updated the Employer’s Tax Guide, which contains information regarding personal income withholding tax filing requirements based on the tax law as of January 1, 2015. The withholding tables have not been changed. Don’t be concerned if you go to their website and still see it listed as 2014.  They updated the Guide but not the website!

SIFL Rates for First Half of 2015

The Department of Transportation has released the applicable terminal charge and standard industry fare level (SIFL) mileage rates for January 1, 2015, through June 30, 2015. These rates will be used by the IRS to determine the value of noncommercial flights on employer-provided aircraft. The terminal charge is $45.52. The SIFL rates are $.2490 per mile for the first 500 miles; $.1898 per mile for 501 miles through 1,500 miles; and $.1825 per mile for miles over 1,500.

NM Nixes Voluntary Contributions to Lower SUI Rates

My sources are now telling me that the New Mexico Department of Workforce Solutions is not going to allow employers to make a voluntary contribution to lower their assigned SUI rates in 2015.  This has not yet been posted on their website. Employers who already sent in a payment will have it returned.  Those whose payment was accidentally processed will be entitled to a refund.

NJ Getting Tough on Classifying Contractors

As a result of a recent New Jersey Supreme Court ruling, New Jersey businesses will be subject to much stricter scrutiny when it comes to classifying workers as independent contractors.  In the case, Sam Hargrove, et.al.v Sleepy’s LLC, the court concluded that the “ABC” test under the New Jersey Unemployment Compensation Act will be used to determine a worker’s status for claims under both the WPL and WHL and not the FLSA’s economic realities test.

 

NJ ABC Test Worker is Independent Contractor if all of these apply:
A Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact; and
B Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed; and
C Such individual is customarily engaged in an independently established trade, occupation, profession or business.

MI Has a New System but No New Tables

In January 2015, the Michigan Department of Treasury began to process current year SUW tax returns with a new online system.  As a result of this new processing system, there will be changes to the SUW forms and to the way taxpayers can file and make payments for returns in tax year 2015 and beyond. The new bundle of e-services is called Michigan Treasury Online (MTO). Business taxpayers have 24/7 access to their accounts and will be able to file returns electronically, pay SUW tax due in one convenient transaction and make routine account changes.

However, although the income tax withholding rate remains at 4.25% for tax year 2015 but the personal exemption amount changed to $4,000, employers should continue to use the 2014 Michigan income Tax Withholding Tables

OR Withholding Changes

The Oregon Department of Revenue has released the wage-bracket withholding tables.  These updated tables reflect the increased federal tax subtraction to $6,450 and other changes to indexed items. If employees need help in making sure proper amount of tax is withheld they may use Department Publication 150-206-643, Oregon Income Tax Withholding.