Daily News Updates for April

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 February

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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IRS Releases 2022 Retirement Plan Limits

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.

 

Tip Work Yes or No?

On October 28, 2021, the U.S Department of Labor announced publication of the Tips Dual Jobs final rule that sets reasonable limits on the amount time an employer can take a tip credit when a tipped worker isn’t doing tip producing work. It clarifies that an employer may take a tip credit only when an employee is performing work that is part of a tipped occupation, specifically; performing work that is tip producing or performing work that directly supports work that is tip producing for a limited amount of time.

The Final Rule also amends the provisions of the Executive Order 13658 regulations, which address the hourly minimum wage paid by contractors to workers performing work on or in connection with covered federal contracts consistent with the amendments to the dual jobs regulations.

Under the final rule, an employer can take a tip credit only when the worker is performing tip producing work or when:

  • A tipped employee performs work that directly supports tip producing work for less than 20 percent of the hours worked during the employee’s workweek. Therefore, an employer cannot take a tip credit for any of the time that exceeds 20 percent of the workweek. Time for which an employer does not take a tip credit is excluded in calculating the 20 percent tolerance.
  • A tipped employee performs directly supporting work for not more than  30 minutes. Therefore, an employer cannot take a tip credit for any of the time that exceeds 30 minutes.

The final rule becomes effective December 28, 2021.  See the Department of Labor website for more information.

 

YouTube News Alerts for Payroll 24/7

I want to let all my blog followers know that the Payroll Advisor now has a YouTube channel where I post my breaking news alerts.  These alerts are almost daily and help you keep abreast of the breaking news especially during this hectic time of year-end. If you are a subscriber to my news e-alert, Payroll 24/7 these updates will be already available to you first through that service.  Of course we only cover one news item per day in these news alerts so if you need all the news each day, you may consider subscribing to our news service.  I hope you find these news videos helpful and informative. If you do I hope you will hit the subscribe button to ensure you receive all future videos.

In the near future I will be adding other videos on various topics for subscribers to my YouTube channel.  These will include brief instructional videos on various payroll related topics.  So please check out our channel and hit the like and subscribe button.

IRS Releases Deposit Schedules and Rules for 2022

The IRS has issued the annual deposit schedules in Notice 931. To review, there are two deposit schedules—monthly or semiweekly—for determining when you deposit social security and Medicare taxes and withheld federal income tax. These schedules tell you when a deposit is due after a tax liability arises (for example, when you have a payday). Before the beginning of each calendar year, you must determine which of the two deposit schedules you must use. The deposit schedule you must use is based on the total tax liability you reported during a lookback period. Your deposit schedule isn’t determined by how often you pay your employees or make deposits. These rules don’t apply to federal unemployment (FUTA) tax. See the Instructions for Form 940 for information on depositing FUTA tax.

Your deposit schedule for a calendar year is determined from the total taxes reported on your Forms 941 in a 4-quarter lookback period. The lookback period begins July 1 and ends June 30, as shown in the chart below. If you  reported $50,000 or less of Form 941 taxes for the lookback period, you’re a monthly schedule depositor; if you reported more than $50,000, you’re a semiweekly
schedule depositor. The lookback period for a 2022 Form 941 filer who filed Form 944 in either 2020 or 2021 is calendar year 2020.

You’re a monthly schedule depositor for a calendar year if the total tax reported for your lookback period was $50,000 or less. Under the monthly deposit schedule, deposit accumulated taxes on payments made during a calendar month by the 15th day of the following month. New employers. Your tax liability for any quarter in the lookback period before the date you started or acquired
your business is considered to be zero. Therefore, you’re a monthly schedule depositor for the first calendar year of your business. You’re a semiweekly schedule depositor for a calendar
year if the total taxes during your lookback period were more than $50,000. Your deposit schedule is in the chart below:

However, it is possible to have to deposit taxes the next day. If you accumulate a tax liability of $100,000 or more on any day during a deposit period, you must deposit the tax by the close of the next business day, whether you’re a monthly or semiweekly schedule depositor. And If you’re a monthly schedule depositor and accumulate a $100,000 tax liability on any day, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year.

IRS Advises Taxpayers to Take a Fresh Look as 2021 Year-End Nears

The Internal Revenue Service reminds taxpayers that the last quarter of 2021 is a good time to check withholding. Life brings constant changes to individual financial situations. Events like marriage, divorce, a new child or home purchase can all be reasons to adjust withholding. The convenient Tax Withholding Estimator, also available in Spanish, will help taxpayers determine if they have too much withheld and how to make an adjustment to put more cash into their own pocket now. In other cases, it will help taxpayers see that they should withhold more or make an estimated tax payment to avoid a tax bill when they file their tax return next year.

Items that may affect 2021 taxes

Things to consider when adjusting withholding for 2021 are:

  • Coronavirus tax relief – Tax help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19).
  • Disasters such as wildfires and hurricanes – Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially
    when the federal government declares their location to be a major disaster area.
  • Job loss – IRS Publication 4128, Tax Impact of Job Loss (.pdf), explains how this unfortunate circumstance can create new tax issues.
  • Workers moving into the gig economy due to the pandemic – IRS advises people earning income in the gig economy to consider estimated tax payments to avoid a
    balance or penalties when they file.
  • Life changes such as marriage or childbirth – Getting married or having a child are just a couple of life events that can affect your refund or how much you owe.

Pay as you go
Taxes are generally paid throughout the year whether from salary withholding, quarterly estimated tax payments or a combination of both. About 70% of taxpayers, however, over
withhold their taxes every year, which typically results in a refund. The average refund in 2021 was more than $2,700. Taxpayers can pay online, by phone or from the IRS2Go app. They can schedule payments for future dates, which can be useful during filing season, for payment plan payments or for estimated tax payments.

Taxpayers can also log into their IRS.gov/account to view the amount they owe, their payment plan details and options, their payment history (up to 5 years), any scheduled or pending
payments, and key tax return information from their most recent tax return.

Tax Withholding Estimator
The IRS Tax Withholding Estimator makes it easier for everyone to have the right amount of tax withheld. This is especially important for anyone who faced an unexpected tax bill or a penalty
when they filed this year, or whose jobs or tax circumstances have changed during the year. The tool offers workers, as well as retirees, self-employed individuals and other taxpayers, a
user-friendly, step-by-step tool for effectively tailoring the amount of income tax they have withheld from wages and pension payments. For more information about taxes, estimated taxes and tax withholding, see Tax Withholding at IRS.gov.

NY Paid Family Leave..All the Info You Need

I received this notification via email.  I thought it was a valuable resource on the state’s paid family leave so I am passing it along in case you need the info but did not receive the notice.  I hope it is helpful.

Starting next week, the New York State Workers’ Compensation Board will host Paid Family Leave webinars for employers and HR professionals.

Each one-hour session will provide an overview of the state’s landmark Paid Family Leave benefit, including benefit and contribution rate information for 2022, employers’ role in the request process, and updated resources you can use to share Paid Family Leave information with your employees. We’ll also leave time at the end to answer any questions you may have.

Paid Family Leave is employee-paid insurance that provides employees with job-protected, paid time off from work to bond with a new child, care for a family member with a serious health condition, or assist when a spouse, domestic partner, child or parent is deployed abroad on active military service. As of March 2020, Paid Family Leave may also be available in the event an employee, or their minor dependent child, is subject to a mandatory or precautionary order of quarantine or isolation due to COVID-19.

Registration is not required. To join, please select the “Join webinar” link below. Add it to your calendar so you don’t forget!

Paid Family Leave for Employers/HR Professionals
Thursday, October 14, 2021
12:00 P.M. – 1:00 P.M.
Join webinar
Add to your calendar!

Thursday, October 21, 2021
12:00 P.M. – 1:00 P.M.
Join webinar
Add to your calendar!


Additional Paid Family Leave resources are available

New York State offers complete details on Paid Family Leave at PaidFamilyLeave.ny.gov, including updates for 2022 and COVID-19. The employer page also contains helpful resources, including employer formsfact sheets and past webinars. Help is also available via a toll-free Paid Family Leave Helpline at (844) 337-6303, Monday through Friday, 8:30 a.m. – 4:30 p.m.


Having trouble?

If you are having trouble registering for or attending any webinar, check out these Webinar FAQs.

Rescission of Joint Employer Status Under the Fair Labor Standards Act Rule Is Now Effective…Tomorrow

The U.S. Department of Labor announced, on September 20, 2021, the extension of the effective date of a final rule to rescind an earlier rule, “Joint Employer Status under the Fair Labor Standards Act,” that took effect in March 2020. The original Sept. 28, 2021, effective date of the rescission is now Oct. 5, 2021.

On March 12, 2021, the department issued a notice of proposed rulemaking proposing to rescind the March 2020 Joint Employer Rule. After reviewing the comments submitted in response to the Notice of Proposed Rulemaking, the department decided to finalize the rescission of the rule. The department believes that the rule narrowed the test for vertical joint employment improperly and conflicted with decades of department interpretation, the text of the Fair Labor Standards Act, and congressional intent.

The rescission will result in the removal and reserving of part 791 of Title 29 of the Code of Federal Regulations in its entirety. The department will continue to consider legal and policy issues relating to FLSA joint employment before determining whether alternative regulatory or sub-regulatory guidance is appropriate.

The FLSA requires covered employers to pay employees at least the federal minimum wage for every hour they work and overtime compensation at not less than one-and-one-half times their regular rate of pay for every hour they work over 40 in a workweek. A strong joint employer standard is critical because FLSA responsibilities and liability for worker protections do not apply to a business that is not the employee’s employer.