CT Updates Informational Withholding Filing

The Connecticut Department of Revenue Services is suspending the electronic filing mandate for filing Form CT-W3 for those employers who issue 24 or fewer W-2s. A paper CT-W3 can be filed by employers with 24 or fewer employees for tax year 2014. The due date for the “paper” CT-W3 is February 28.

Also included in the suspended mandate are taxpayers who issue 24 or fewer Forms 1099-R, 1099-MISC, or W-2G. A paper CT-1096 can be filed if the business issued 24 or fewer 1099’s for tax year 2014. The due date for the “paper” CT-1096 is February 28.

Taxpayers are encouraged to use the Taxpayer Service Center (TSC) to electronically file the annual reconciliation of withholding forms. These forms are due March 31, 2015 when filed through the TSC. Taxpayers can key in or upload their annual withholding returns quickly and easily using the TSC. The program gives taxpayers step-by-step instructions for filing.

For assistance with electronic filing, call DRS at 800-382-9463 (outside the Greater Hartford calling area) or 860-297-5962 (from anywhere).


Form W-2 Filing Date Reminders

Just a quick reminder of the filing due dates for the 2014 Forms W-2.  The form is due to the employee by Monday, February 2, 2015.  January 31, 2015, the normal due date is a Saturday so we move the due date to the next business day.  The forms are due to the Social Security Administration by March 31, 2015 if filing electronically.  The form is due by March 2, 2015 if filing on paper. Again the normal due date of the last day in February falls on a Saturday.

IRS Releases Guidance on Transportation Fringe Benefits

The IRS has released guidance with respect to the issues related to the retroactive increase in the monthly transit benefit exclusion for 2014. The increase went from $130 per participating employee to $250 per participating employee for the period from January 1, 2014 through December 31, 2014.  Due to the timing of the statutory change and in order to reduce administrative burden, the Service is providing a special administrative procedure for employers that treated excess transit benefits as wages and that have not yet filed their fourth quarter Form 941 for 2014 to make necessary corrections on their fourth quarter Form 941. This guidance is contained in Notice 2015-02.

Breaking News on Transit Passes

Of course just when we are closing up for the holidays we get breaking news on H.R. 5771.  President Obama has signed the bill that retroactively renews parity in transit and parking benefits back to January 1, 2014.  As discussed in an earlier blog this month, the IRS will issue guidance on how to handle the taxes and Forms W-2. It will more than likely follow the same guidance they issued back in 2013 for 2012 when this happened last time.

Parity with Parking Is Back!

Yesterday, the U.S. Senate passed what is known as the extender bill (Tax Increase Prevention Act of 2014, HR 5771) and the president is expected to sign it.  As we discussed in our previous blog on this subject, this bill give parity for transit passes and parking and is retroactive back to January 1, 2014.  Effective January 1, 2014, (no that is not a typo, I meant 2014) transit passes are increased to $250 per month.

This happened in 2012/2013 and the IRS had to issue guidance on how to handle Forms W-2 etc.  This guidance was contained in Notice 2013-8. It appears the IRS will issue the same guidance again for 2014.  We will keep you posted as more information comes in.


IRS Releases 2014 Form 940

2014 Form 940

Better late than never it seems for this year.  The IRS has released the 2014 Form 940, its instructions and the Schedule A.  All are available on the IRS’ website.  There are no changes to the form from 2013.  The seven states announced earlier in November that will have a FUTA credit reduction are indeed listed on the Schedule A.  They are:

State Rate
California 1.2%
Connecticut 1.7%
Indiana 1.5%
Kentucky 1.2%
North Carolina 1.2%
New York 1.2%
Ohio 1.2%

In addition, the territory of the Virgin Islands’ rate is 1.2%.

FUTA Credit Reduction–Just Out

My sources (not the DOL or IRS as of yet) are telling me that the following states will have a credit reduction for FUTA for 2014.  The IRS has not released the Form 940 Schedule A as of this time but the source I have is pretty reliable so I will post just to give you a heads up.  I will also post when the IRS releases the forms.  The states are: California, Connecticut, Indiana, Kentucky, New York, North Carolina and Ohio.  The list also includes the Virgin Islands.  All will have a rate of 1.2% credit reduction for a net FUTA rate of 1.8% except for Connecticut and Indiana.  Connecticut will have a credit reduction of 1.7% with a net FUTA rate of 2.3%.  Indiana will have a credit reduction of 1.5% with a net FUTA rate of 2.1%.  Again I will post the Form 940 and the Schedule A as soon as they are released.