State Publications and Forms

California Enacting Electronic Filing Requirement for All Employers

The state legislature has passed AB 1245, a bill that requires California employers of 10 or more employees to submit quarterly payroll tax returns and pay the associated payroll taxes electronically over the California Employment Development Department website starting in 2017. The bill also requires all employers to file and pay electronically effective January 1, 2018. The bill awaits the governor signature and he is expected to sign it.

Today is the last day to receive updates through this blog.  Starting on Monday, August 3rd, the blog will be devoted to discussing current payroll issues and questions.

To continue receiving our payroll-centric news updates, subscriber to our news service, The Payroll Advisor, for only $65 per year.

 

UT Moves W-2 Filing Date for 2016

Effective January 1, 2016 all employers must file Form TC-941-R, Utah Annual Withholding Reconciliation, and corresponding Forms W-2 (and 1099 with Utah taxes withheld) electronically by an accelerated due date of January 31 of the year following the calendar year for which the forms pertain with the Utah State Tax Commission.  The change is due to the passage of SB 250, which was signed by the governor on March 30, 2015. Currently, the deadline to file Forms TC-941R and W-2/1099 with the Commission is February 28 if filing on paper or March 31 if filing electronically.  The new due dates apply to the 2015 calendar year filings. However the actual due date will be February 1, 2016 as the 31st is on a Sunday in 2016.

In addition, the penalties for failing to file the forms electronically by the January 31 due date are as follows:

  • $30 per form, not to exceed $75,000 in a calendar year, if the employer files the form more than 14 days after the due date, but no later than 30 days after the due date;
  • $60 per form, not to exceed $200,000 in a calendar year, if the employer files the form more than 30 days after the due date but on or before June 1; or
  • $100 per form, not to exceed $500,000 in a calendar year, if the employer files the form after June 1; or fails to file the form.

UT Expands Electronic Filing in 2016

Recent legislation ( S.B. 250) passed in Utah is expanding the types of forms that must be filed electronically by employers and moving the due dates. The employer’s annual income tax withholding return must be filed electronically by January 31 of the year following that for which the report is made. The old due date was February 28.

In addition, an employer that issues any of the following forms for a taxable year must file the forms with the commission on or before January 31 in an electronic format approved by the commission:

  • a federal Form W-2;

  • a federal Form 1099 filed for purposes of withholding; or

  • a federal form designated by the commission as substantially similar to a federal Form W-2 or federal Form 1099.

Under prior law, an employer that was required to file a federal Form W-2 in an electronic format was also required to file Form W-2 electronically for Utah income tax withholding purposes. However, there was no prior requirement to electronically file Form 1099 or any similar form for state withholding purposes.

VT Increasing Health Care Contributions for 2015

Vermont is increasing the Health Care Contributions for 2015. According to the Form HC-1 instructions that were revised in February 2015, the employer health care contribution for calendar year 2015 is increasing to $140.84 per quarter (up from $133.30 for the third and fourth quarters 2014) for each “uncovered” full time equivalent (FTE) employee in excess of four. The change is effective for the first quarter 2015 return due April 30, 2015.

Alabama W-2 Filing Due Date Changes for 2016

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.

KY Wraps System Now Open

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.

All WV Employers Must File Annual Reconciliation Return

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.

MN Updates Form W-4MN

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).

Questions?
Visit the DOR website to view W-4MN information including employer requirements and Top FAQs.