IRS Announces 2015 Housing Limits for Those Employees Abroad

The IRS has issued the annual adjustments to the housing expense limitation for specific locations for purposes of Code Sec. 911, as amended by the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) (P.L. 109-222). Notice 2015-33 provides adjusted limitations on housing expenses for tax year 2015 for purposes of the foreign earned income exclusion and foreign housing exclusion.

WV Imposing Failure to Pay by EFT Penalties

Per a West Virginia State Tax Department website notice, taxpayers required to pay by electronic funds transfer (EFT) will be subject to a 3% civil penalty applied to any payment received on or after March 1, 2015, if the payment is not made by electronic funds transfer (EFT) and a waiver to pay electronically has not been obtained.

VT Increasing Health Care Contributions for 2015

Vermont is increasing the Health Care Contributions for 2015. According to the Form HC-1 instructions that were revised in February 2015, the employer health care contribution for calendar year 2015 is increasing to $140.84 per quarter (up from $133.30 for the third and fourth quarters 2014) for each “uncovered” full time equivalent (FTE) employee in excess of four. The change is effective for the first quarter 2015 return due April 30, 2015.

Alabama W-2 Filing Due Date Changes for 2016

The Alabama Department of Revenue has finalized its proposed change to the due  date for filing Forms W-2 with the state.  The due date has been moved from the current date of February 28 to January 31.  The rule was finalized on March 2, 2015 and takes effect on March 3, 2015.  Since the rule date was changed so late in 2015 it doesn’t affect the 2014 Form W-2 filed in 2015. The due date is still February 28th.  However effective with the Forms W-2 for 2015 filed in 2016 the deadline will be January 31, 2016.

KY Wraps System Now Open

The Kentucky Department of Revenue has announced that their new Withholding Return and Payment System (WRAPS) is now open for business. Employers may now file their withholding tax returns electronically. Forms that may be filed using the WRAPS include Forms K-1, Employer’s Return of Income Tax Withheld, and K-3, Employer’s Return of Income Tax Withheld (Annual Reconciliation). Employers can file their returns, view and/or amend previously filed online returns, request refunds and credits, and use the Enterprise Electronic Payment System to pay withholding tax.

MA Issues SUI Wage Base and EMAC Rates for 2015

Massachusetts  2015 SUI taxable wage base increased to $15,000, up from $14,000 for 2014

Mailing of 2015 rate notices

The Massachusetts Department of Labor and Workforce Development issued the 2015 SUI tax rates to employers on January 31, 2015.  The protest deadline is June 20, 2015. Employers that disagree with the employer-specific figures used in computing their 2015 SUI tax rate may request a review in writing by June 20, 2015.

Employer Medical Assistance Contribution (EMAC) rates for 2015

Employers that paid the Employer Medical Assistance Contribution (EMAC) at a rate of 0.24% or 0.36% for calendar year 2014 will pay at a rate of 0.34% for 2015 up to a taxable wage base of $15,000 per employee.

 

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.