GA 2015 Employer Guide Now Available

The Georgia Department of Revenue has updated the Employer’s Tax Guide, which contains information regarding personal income withholding tax filing requirements based on the tax law as of January 1, 2015. The withholding tables have not been changed. Don’t be concerned if you go to their website and still see it listed as 2014.  They updated the Guide but not the website!

MI Has a New System but No New Tables

In January 2015, the Michigan Department of Treasury began to process current year SUW tax returns with a new online system.  As a result of this new processing system, there will be changes to the SUW forms and to the way taxpayers can file and make payments for returns in tax year 2015 and beyond. The new bundle of e-services is called Michigan Treasury Online (MTO). Business taxpayers have 24/7 access to their accounts and will be able to file returns electronically, pay SUW tax due in one convenient transaction and make routine account changes.

However, although the income tax withholding rate remains at 4.25% for tax year 2015 but the personal exemption amount changed to $4,000, employers should continue to use the 2014 Michigan income Tax Withholding Tables

OR Withholding Changes

The Oregon Department of Revenue has released the wage-bracket withholding tables.  These updated tables reflect the increased federal tax subtraction to $6,450 and other changes to indexed items. If employees need help in making sure proper amount of tax is withheld they may use Department Publication 150-206-643, Oregon Income Tax Withholding.

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).


OK Resolves the Issue: Who Gets the Taxes When an Employee Telecommutes?

Telecommuting and taxes, taxes and telecommuting. I get questions every day from payroll professionals about withholding state taxes when an employee telecommutes from outside the state.  Do you withhold for the state where the work is sent (the employer state) or where the employee is performing the work (where his or her chair meets his or her backside, to put it crudely).  Several states have what are called telecommuter laws that rely on the so-called “convenience of the employer” laws. These include New York, Delaware, Pennsylvania and Nebraska. It depends on why the employee is telecommuting. If the employee telecommutes out of “employer necessity” then you take the taxes of where the work is performed.  But this is not so easy in New York. Meeting that state’s standards of employer necessity is virtually impossible so you may have to tax the employee twice, once for New York where the employer is located and once for the home state.  This is especially true if the state is located “adjacent to” New York.

But fortunately for payroll professionals Oklahoma has taken the logical approach and confirmed that an employee who moved out of Oklahoma but still works for the same employer by telecommuting is not subject Oklahoma nonresident income tax because the salaries, wages and commissions are for work performed outside of Oklahoma and the employee derives no income from sources within the state of Oklahoma.  Accordingly the employer does not withholding Oklahoma state income tax from the wages.  If only all states were as easy and as logical.

KY Unveils WRAPS

The Kentucky Department of Revenue has launched a new online personal income tax withholding return and payment system (WRAPS). Employers can use WRAPS to file returns (annual, quarterly, monthly, and twice-monthly returns), view and amend previously filed online returns, request refunds, and pay withholding tax using the enterprise electronic payment system.