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Vicki Lambert

Updates for Payroll for October

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Here are our updates for October.  I pick one item from each of my newsletters to feature.  To receive all of our payroll news updates, please subscribe to my news update service.

October 19:

Unemployment Insurance 2023 Wage Bases and Rates:

  • New York: The taxable wage base for 2023 will be $12,300
  • Oklahoma: The unemployment taxable wage base will increase to $25,700.
  • Wisconsin: For 2023, Schedule D remains in effect
  • Wyoming: the 2023 unemployment taxable wage base will increase to $29,100.

October 15:

IRS has announced transportation fringe benefits for 2023.  They are:

Qualified transportation: For taxable years beginning in 2023, the monthly limitation under § 132(f)(2)(A) regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $300.  The monthly limitation under § 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $300.

October 14: 

Washington: the state has two items for today’s update. These are:

  1. The Seattle Office of Labor Standards has announced the 2023 minimum wage
    • For large employers (501 or more employees): $18.69 per
    • For small employers (500 or fewer employees) who do pay at least $2.19 per hour toward the employee’s medical benefits and/or where the employee does earn at least $2.19 per hour tips the rate will be $16.50 per hour, otherwise the minimum wage rate of $18.69 per hour would apply.
  2. The SeaTac minimum wage rate for hospitality and transportation industry employees working in and near SeaTac will increase to $19.06 per hour, effective January 1,

 

 

Payroll Updates for September

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Here are our updates for September:

 

 

 

Thursday, September 29, 2022:

 

California, Palo Alto: the minimum wage for the city will increase to $17.30 per hour effective January 1, 2023.

California, San Carlos: The minimum wage for the city will increase to $16.32 per hour effective January 1, 2023.

 

Friday, September 16, 2022:

Federal: The Gen. Services Administration has announced the per diem rates for 2023. The standard CONUS lodging rate will increase from $96 to $98. All current NSAs will have lodging rates at or above FY 2022 rates. The M&IE per diem tiers for FY 2023 are unchanged at $59-$79, with the standard M&IE rate unchanged at $59.

 

Thursday, September 15, 2022:

Nevada: the state has announced the taxable wage base for SUI for 2023. Effective January 1, 2023, the taxable wage base will be $40,100.

 

Wednesday, September 14, 2022:

Arkansas: the state has issued new withholding tables for wages paid on or after October 1, 2022. These new tables reflect the new income tax rate of 4.9%. This new rate was set by legislation back in August. The supplemental tax rate is also 4.9%.

Payroll News Updates for July 2022

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Here are my news updates for the month of July.  I post one news item each time I send out my e-alert to my subscribers. To become a subscriber and receive all the latest payroll news right to your inbox subscribe to Payroll 24/7 for only $149 per year.

 

 

July 27, 2022: IRS: the following forms have been issued in draft version:

Form W-4 for 2023

Form 8922 Third-Party Sick Pay Recap for 2022


July 13, 2022: California, Los Angles: The City Council of Los Angeles passed and the mayor has signed the Healthcare Workers Minimum Wage Ordinance on June 29, 2022. The Ordinance requires a “covered healthcare facility” to pay a “healthcare worker” a minimum wage of no less than $25 per hour and requires that beginning January 1, 2024, the minimum wage for healthcare workers be adjusted for inflation. This new law takes effect 31 days after the City Clerk publishes the ordinance.

May News Updates

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Here are my news updates for the month of May.  To receive all the latest payroll news right to your inbox subscribe to Payroll 24/7 for only $149 per year.

 

May 27:  Office of Child Support Enforcement: The OCSE has added an interactive map for new hiring reporting on a new webpage.  The user may click on any state and be directed to the new hire reporting website.

May 24: Colorado: The Department of Labor and Employment (DLE) has issued guidance regarding its new state-run Paid Family and Medical Leave Insurance (FAMLI) program.

May 18: Milpitas, CA: The city will increase its minimum wage to $16.40 per hour effective July 1, 2022

May 5:  New York: The New York City Council has pushed back implementation of the salary transparency law from May 15, 2022, to November 1, 2022.

 

Daily News Updates for April

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Here are our news updates for April.  I post one news item per update to our subscribers here on the blog. To receive all of the day’s payroll news updates, subscribe to Payroll 24/7 for only $149 per year.

 

 

 

April 29, 2022: The IRS has issued the following in draft form:

April 20, 2022:  The IRS has released the draft of the Form 941 for the second quarter of 2022. Major changes include marking most COVID19 related lines as “reserved for future use”. The forms 941-SS and 941 PR have also been released draft

April 5, 2022: The Office of Child Support Enforcement has created the electronic version of the National Medical Support Notice.  Known as e-NMSN it is modeled after the highly successful e-IWO process.  Information on this new system can be found on the OCSE website.  Currently Virginia is the only state using this new system.

 

Daily News Updates for March

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Here are our news updates for March.  I post one news item per update to our subscribers here on the blog. To receive all of the day’s payroll news updates, subscribe to Payroll 24/7 for only $149 per year.

 

 

 

March 29: Utah has passed a law (SB 39) that amends how nonresidents working in Utah are taxed. The “mobile workforce” income tax bill addresses the tax liability and withholding requirements for a nonresident individual earning wages in the state. This bill creates an exemption from income tax if a nonresident individual works in the state for 20 or fewer days during a taxable year and provides the circumstances that the individual’s resident state provides a substantially similar exclusion or does not impose a state individual income tax.

March 25:  Two California cities have minimum wage increases coming in July:

  • Emeryville, California: The city’s minimum wage rate will increase to $17.68 per hour effective July 1, 2022.
  • Pasadena, California: The minimum wage rate for Pasadena will increase to $16.11 per hour on July 1, 2022.

March 9:  The Department of Transportation has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rates for determining the value of noncommercial flights on employer-provided aircraft in effect for the first half of 2022 for purposes of the taxation of fringe benefits. The unadjusted rates for flights taken during the period from January 1, 2022, through June 30, 2022are as follows:

  • $.2460 per mile for the first 500 miles
  • $.1876 per mile 501 through 1,500 miles
  • $.1803 per mile over 1,500 miles
  • terminal charge is $44.98

Daily News Updates for February

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A bit more of a change up for the new year.  Several of my followers have noted that having one blog for news updates per month would be easier rather than breaking it up by week.  To further refine my new blogs I will do one for each month, in this case February, and update daily as my news letters go out.  I hope you find this helpful.

 

February 22, 2022:  I have not posted for a while as the news has been really slow.  But it is coming back now that year end is over and legislatures are coming back to work.  Today we have the minimum wage increase for airport workers in Houston, TX.

The Mayor has signed an Executive Order that will raise the minimum wage for Houston airport workers to the following:

  • $13.00 per hour, eff. April 1, 2022
  • $14.00 per hour, eff. Oct. 1, 2022
  • $15.00 per hour, eff. Oct. 1, 2023.

 

February 3, 2022: Pennsylvania: The Department of Revenue has announced on its website that due to the very high volume of users attempting to upload large volumes of information simultaneously, e-TIDES, the Department of Revenue’s online business tax filing system, has been experiencing technical issues. As a result, the department has extended the filing deadline for W2s, 1099s, and the REV-1667 to February 4, 2022.

 

 

 

 

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Daily News Updates for January, 2022

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A bit more of a change up for the new year.  Several of my followers have noted that having one blog for news updates per month would be easier rather than breaking it up by week.  To further refine my new blogs I will do one for each month, in this case January, and update daily as my news letters go out.  I hope you find this helpful.

January 25, 2022: IRS: The IRS has issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. Notice 2021-65 applies to employers that paid wages after September 30, 2021 and received an advance payment of the Employee Retention Credit for those wages or reduced employment tax deposits in anticipation of the credit for the fourth quarter of 2021 but are now ineligible for the credit due to the change in the law.

January 14, 2022: Virginia:  The Department of Taxation has revised the Income Tax Withholding Guide for Employers with a January 2022 revision date. The Guide was last revised November 2021. There are no substantive changes. The tax tables are not changed.

January 6, 2022: On the payroll industry phone call this morning the IRS stated to my question that it has still not issued guidance on the electronic filing threshold for Forms W-2 for 2021 W-s filed by 1-31-22. It could be 100 or more or still 250 or more.

January 4, 2022:   Form W-4 has been finalized for 2022. It is available on the IRS website.

 

 

 

Subscribe to Payroll 24/7 to receive all the latest payroll news for only $149 per year.

Check out our YouTube site!

Subscribe to our podcast!

IRS Issues Guidance on ERC for 4th Quarter

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Editor’s Note: The Internal Revenue Service today issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. I have included the entire email breakdown provided by the IRS with the Notice for you in this blog. Use the link to access the actual notice for more info.

The Infrastructure Investment and Jobs Act, which was enacted on Nov. 15, 2021, amended the law so that the Employee Retention Credit applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business. Notice 2021-65 applies to employers that paid wages after September 30, 2021, and received an advance payment of the Employee Retention Credit for those wages or reduced employment tax deposits in anticipation of the credit for the fourth quarter of 2021, but are now ineligible for the credit due to the change in the law. The notice also provides guidance regarding how the rules apply to recovery startup businesses during the fourth quarter of 2021.

Employers who Received Advance Payments

Generally, employers that are not recovery startup businesses and received advance payments for fourth quarter wages of 2021 will avoid failure to pay penalties if they repay those amounts by the due date of their applicable employment tax returns.

Employers who Reduced Employment Tax Deposits

Employers that reduced deposits on or before Dec. 20, 2021, for wages paid during the fourth calendar quarter of 2021 in anticipation of the Employee Retention Credit and that are not recovery startup businesses will not be subject to a failure to deposit penalty with respect to the retained deposits if—

 

  • The employer reduced deposits in anticipation of the Employee Retention Credit, consistent with the rules in Notice 2021-24,
  • The employer deposits the amounts initially retained in anticipation of the Employee Retention Credit on or before the relevant due date for wages paid on December 31, 2021 (regardless of whether the employer actually pays wages on that date). Deposit due dates will vary based on the deposit schedule of the employer, and
  • The employer reports the tax liability resulting from the termination of the employer’s Employee Retention Credit on the applicable employment tax return or schedule that includes the period from October 1, 2021, through December 31, 2021. Employers should refer to the instructions to the applicable employment tax return or schedule for additional information on how to report the tax liability.

Due to the termination of the Employee Retention Credit for wages paid in the fourth quarter of 2021 for employers that are not recovery startup businesses, failure to deposit penalties are not waived for these employers if they reduce deposits after Dec. 20, 2021. If an employer does not qualify for relief under this Notice, it may reply to a notice about a penalty with an explanation and the IRS will consider reasonable cause relief.

IRS Releases 2022 Retirement Plan Limits

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Section 415 of the Internal Revenue Code (“Code”) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost-of-living increases. The IRS released Notice 2021-61 (PDF) to provide for cost-of-living adjustments to dollar limitations for retirement plan benefits and contributions. This includes the following:

  • Annual benefit under a defined benefit plan under section 415(b)(1)(A) of the Code is increased from $230,000 to $245,000
  • The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2022 from $58,000 to $61,000.
  • The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3) is increased from $19,500 to $20,500.
  • The annual compensation limit under sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $290,000 to $305,000.
  • The dollar limitation under section 416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan is increased from $185,000 to $200,000.
  • The limitation used in the definition of “highly compensated employee” under section 414(q)(1)(B) is increased from $130,000 to $135,000.