Corona Virus Update

Here are the updates to report since my last COVID-19 blog. First up, the Department of Labor is now, officially, enforcing the paid sick leave and paid family leave requirements of the Families First Act. There was a grace period for compliance and that has now passed.

 

The states are starting to get active with information on withholding taxes and especially on garnishments.  These include:

Withholding Tax:

  • Colorado:  nonresident emergency workers are not subject to withholding for state income tax.
  • Maryland: new guidance notes that the pandemic does not affect the withholding requirements for teleworkers.
  • Massachusetts:  compensation to a nonresident is still sourced to the state if the worker was performing those services within the state immediately before the pandemic and is now performing those services outside the state.

Garnishments: Pennsylvania and Washington are suspending or reducing wage garnishments or tax liens.

Most of the states have COVID-19 sections on their websites for either departments of labor or departments of revenue to assist employers with questions and compliance issues.

To keep up to date with the latest info on the COVID-19 payroll related news items, subscribe to our payroll e-news service, Payroll 24/7 for only $149 per year.

Corona Virus Update

States are working fast and furious to get out their response to the COVID-19 pandemic.  Since my last update blog, Connecticut, Hawaii and Indiana are among the states that have either released or updated the FAQs on their websites with new information on the latest COVID-19 measures.

Some states are offering tax relief in terms of delaying either unemployment insurance payments or withholding tax deposits.  These include: Iowa, Missouri, North Carolina, North Dakota and Texas.  However, Arkansas and Colorado, at this time, are not offering extensions for payments or deposits of withholding taxes.

When it comes to unemployment claims, Ohio, Pennsylvania and Vermont are not charging an employer’s account for SUI benefits claims related to the COVID-19 emergency.

Need more info on the latest for the Corona Virus pandemic and payroll related items?  Today is the last day to register for my webinar tomorrow on all things payroll related to COVID-19 including the Families First Act, the CARES Act (and tax credits), state updates on filing and tax relief and garnishment updates including IRS tax levies and student loans.  Use coupon code BBTK7FCJ at checkout to receive a 10% discount off the $149 registration price.

Coronavirus Update

As I posted in my last blog, many states as well as the federal government are making temporary changes to tax filing deadlines, unemployment insurance requirements and other matters during this pandemic.  The following is a recap of the latest updates that have crossed my desk this week:

Note:  I will be offering a webinar on the payroll related items occurring during this pandemic.  See info at bottom of blog for more details.

Federal: the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020. For full details see IRS website’s Coronavirus webpage.

The following states are providing filing or deposit penalty relief or extending deadlines due to the Corona Virus:

 

Unemployment Insurance Update: The following states are waiving waiting times or making other temporary changes:

The following is provided by these states:

San Francisco, California: Workers and Families First Program will provide paid sick leave to impacted workers.

New York: Guaranteed sick leave for New Yorkers under mandatory or precautionary quarantine

I will be offering a webinar/lecture on major impacts that affect payroll professionals due to the pandemic.  It will be held on Friday, April 10, 2020 from 10 am to 11:30 am Pacific time.  More details will be available next week.

Register Today for Our Next Lecture and Receive a 10% Discount

Our next lecture Payroll Lecture Series 102: Multistate Employees: Taxes & Wage Hour Law & Garnishments…Oh My! will be held on Monday, March 30, 2020 from 10 am Pacific to Noon Pacific. This webinar/lecture will cover the difficult areas for compliance when processing payroll for employees who live in one state and work in another or who work in two or more states.  This lecture includes:

  • How to determine state withholding liability
  • Who is a resident
  • How reciprocal agreements affect taxation of wages
  • Resident and nonresident taxation policies
  • The four factor test for state unemployment insurance
  • Income and unemployment taxation of Fringe benefits
  • What wage and hour laws must be followed
  • How to handle income and unemployment insurance taxation for employees working in multiple states
  • How working in multiple states could affect withholding for garnishments
  • Withholding requirements when an employee is in a state temporarily
  • Which states require the use of their own Withholding Allowance Certificate, which states allow either theirs or the Form W-4, and which states don’t have a form
  • Reporting wages for multistate employees on Form W-2

We are an APA approved provider for 2020. This lecture has been submitted to the APA for 2.0 RCHs.  As with all my lectures, my subscribers will receive a 10% discount by using the coupon code EFVMPZC9 at checkout.  But you must register before March 25, 2020 to receive the discount.

Our Next Webinar/Lecture…Multistate Employees

Our next lecture Payroll Lecture Series 102: Multistate Employees: Taxes & Wage Hour Law & Garnishments…Oh My! will be held on Monday, March 30, 2020 from 10 am Pacific to Noon Pacific. This webinar/lecture will cover the difficult areas for compliance when processing payroll for employees who live in one state and work in another or who work in two or more states.  This lecture includes:

  • How to determine state withholding liability
  • Who is a resident
  • How reciprocal agreements affect taxation of wages
  • Resident and nonresident taxation policies
  • The four factor test for state unemployment insurance
  • Income and unemployment taxation of Fringe benefits
  • What wage and hour laws must be followed
  • How to handle income and unemployment insurance taxation for employees working in multiple states
  • How working in multiple states could affect withholding for garnishments
  • Withholding requirements when an employee is in a state temporarily
  • Which states require the use of their own Withholding Allowance Certificate, which states allow either theirs or the Form W-4, and which states don’t have a form
  • Reporting wages for multistate employees on Form W-2

We are an APA approved provider for 2020. This lecture has been submitted to the APA for 2.0 RCHs.  As with all my lectures, my subscribers will receive a 10% discount by using the coupon code EFVMPZC9 at checkout.  But you must register before March 25, 2020 to receive the discount.

Corona Virus Update

The federal and state governments are focusing on providing either tax relief, lost wages relief or updates when employers are affected by the Corona Virus.  This may include delaying reporting or allowing for penalty relief.  It may also include mandatory sick pay, clarification on current sick pay mandates or changes to unemployment insurance qualifications. The following are some of the actions being taken by the IRS or states during this difficult time:

Internal Revenue Service: The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. This page will be updated as new information is available. This page includes information on (1) Deferring tax payments and (2) High deductible plans covering the pandemic.

So far, the following states are addressing the pandemic:

States Extending Filing Deadlines:

  • California: 60-day filing extension available
  • Maryland: Extend to June 1

State Unemployment and/or Disability:

The following states have suspended the waiting period for unemployment benefits for any employees affected by the Corona Virus: California, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, New York, North Carolina, Rhode Island, Tennessee, Texas, Vermont, and Washington.

Paid Sick Leave Updates or Guidance:

San Francisco: The San Francisco Office of Labor Standards Enforcement (OLSE) has issued guidance regarding the use of San Francisco paid sick leave for situations involving the recent Coronavirus outbreak.

Colorado: Effective March 11, 2020, emergency rules temporarily require employers in certain industries to provide a small amount of paid sick leave (up to four days) to employees with flu-like symptoms while awaiting coronavirus (COVID-19) testing. The DLSS has a webpage dedicated to the emergency rules with further information that will be updated as necessary.

New Jersey: Workers may use sick leave, apply for TDI or apply for Family Leave Insurance due to the Corona Virus.

Washington: Workers who are sick with the virus and have a Certification of a Serious Health Condition form signed by a healthcare provider may be eligible for Paid Family and Medical Leave benefits. The ESD has a comparison guide and a list of frequently asked questions (FAQs) to find out which programs and benefits are available in various circumstances.

As more information comes in for the states, I will update this blog.

Update on Multistate Taxation Legislation–Passed the House Again! But Needs Your Help

In our blog on March 9th of this year we discussed the latest attempt (the last one was 2012) to simplify taxation for multistate employees.  Those are employees who live in one state and work in other states. Many of these employees work in the state for only a few days or weeks out of the calendar tax year, yet employers must withhold taxes for these states and the employees must file, in most cases, income tax returns.  To try to alleviate this burden on employers ( the tracking requirements for payroll departments can be massive) the Mobile Workforce State Income Tax Simplification Act of 2015 (H.R. 2315 ) was introduced.  A major push by payroll professionals and the American Payroll Association was begun. I, myself, wrote letters to the Nevada congress members and Senators asking for the bill to be passed as well as asked my blog followers to do the same.  Well the hard work so far is paying off.  The House of Representatives passed the bill on September 21st and it is now in the hands of the Senate.  It appears to be a bi-partisan bill with co-sponsors from both sides of the aisle. However, a similar bill was passed in 2012 but was not considered by the Senate before they adjourned the session so this may be the case this year.  It is opposed by New York state and similarly situation states that will lose a lot of revenue from nonresidents if the bill is passed. Let’s keep our fingers crossed.  However, writing to your Senators might help push this along. If every payroll professional who has had to deal with tracking, withholding and paying multistate employees would write a letter to their own Senators imagine how flooded the Senate mail office would be! So write, phone or email your Senators today!

Forms W-2 2016 Due Dates Update

form w-2 due dateEarlier this year the IRS announced that the due date for the copy of the Form W-2 required to be filed with the Social Security Administration changed. Instead of being due by the last day in February for paper filers or March 31st for electronic filers, all filers must submit the form by January 31st.  The change was made in an attempt to curtail excess fraud schemes that had cropped up around filing fraudulent 1040 forms and requesting nonexistent refunds.  The states, suffering from the same type of fraud, also began changing due dates as well.  Our white paper this time is a recap of the changes and lists the current due dates for the forms by state.  This list is current as of July 14th.  Of course, as legislatures return in the fall, we may expect more changes.  We will publish a final due date list in late December.

We hope you find the information useful. white paper forms w-2 due dates 2016

 

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Company Cars Part 2

Our free white paper this week is the second of our two-parter on the personal use of a company car.  This time we are doing the math.  Yes unfortunately, math is involved when having to determine the taxable wages.  But it is not the only thing needed to do the computations. Vehicle values and vehicle logs are also needed, depending on the method chosen.  You also need to determine the proper method based on the value of the car and the status of the employee.  We hope you find the white paper useful. It can be requested on our website.

 

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Contact Congress Now About Multistate Taxes!

As most payroll professionals are aware, having employees who travel to various states can be a logistical nightmare when it comes to taxation.  Even an hourly employee traveling for a two-day training on their payroll software could create a taxation situation requiring hand calculation of taxes, and the employee having to file a non-resident tax return.  This is the mobile workforce we live with today.  And it is getting worse as more and more employees are traveling for their jobs. But you have a chance to do something about this because it doesn’t have to be this cumbersome for payroll if Congress passes the Mobile Workforce State Income Tax Simplification Act. This bill establishes a 30-day threshold before taxes are required.  This ensures that state and local governments get their fair share of taxes when an employee works in a state on a regular basis, but doesn’t require an employee who only goes to that state for a 2-day conference to pay taxes.   The Government Relations Committee of the American Payroll Association is helping to promote this new bill. It is asking payroll professionals to contact their Senators and Representatives and ask for their support on this bi-partisan bill.  Because they know how busy payroll is, they have made it very simple for you.  All you need to do is to click here. This will take you to their automated page where you just fill in your contact info and it creates the letters for you.  Then your can send as an email or print and mail out yourself.  It even allows you to add your own comments. Let’s help ourselves in payroll by helping to pass this much needed legislation.