NJ Getting Tough on Classifying Contractors

As a result of a recent New Jersey Supreme Court ruling, New Jersey businesses will be subject to much stricter scrutiny when it comes to classifying workers as independent contractors.  In the case, Sam Hargrove, et.al.v Sleepy’s LLC, the court concluded that the “ABC” test under the New Jersey Unemployment Compensation Act will be used to determine a worker’s status for claims under both the WPL and WHL and not the FLSA’s economic realities test.

 

NJ ABC Test Worker is Independent Contractor if all of these apply:
A Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact; and
B Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed; and
C Such individual is customarily engaged in an independently established trade, occupation, profession or business.

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).

 

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.

2015 Publications and Forms

I am still catching up from my vacation over the holidays.  The IRS has released the following publications for 2015:

  • Publication 15, The Circular E. It is now available on the IRS website.   http://www.irs.gov/pub/irs-pdf/p15.pdf
  • Publication 15-B, Employer’s Tax Guide to Fringe Benefits  http://www.irs.gov/pub/irs-pdf/p15b.pdf
  • Publication 51, Circular A, Agricultural Employers Tax Guide  http://www.irs.gov/pub/irs-pdf/p51.pdf
  • Publication 80, Circular SS Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands http://www.irs.gov/pub/irs-pdf/p80.pdf

In addition, the IRS has also released the 2015 Form W-4 http://www.irs.gov/pub/irs-pdf/fw4.pdf