The New York Department of Labor has announced the taxable wage base for 2011. The wage base will remain at $8,500 for 2011.
Employer Rates for 2011 Announced
Employer rates will go from a low of 1.5% to a high of 9.9%. The new employer rate is 4.1% for 2011. All these rates include the 0.075% re-employment tax.
Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page
Contact Vision Payroll if you have any questions on New York unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
Why Did My NYC Withholding Go Up?
This week’s question comes from Terry, a small business owner in New York City. My net pay is the same every week, but last week’s net pay changed. Upon further review, the difference is because the withholding tax for New York City increased from the week before. Why did my NYC withholding go up? Answer: Effective September 1, 2010, new withholding tables went into effect for New York City withholding.
Increase Affects Employees Earning $500,000 or More per Year
The change in withholding affects taxpayers who make $500,000 or more per year. Tax must be withheld according to Publication NYS-50-T.2, Revised New York City Withholding Tax Computation Rules.
New York State and Yonkers Withholding not Affected
The New York State personal income tax rates, Yonkers resident personal income surcharge tax rate, and Yonkers nonresident earnings tax rate have not changed. Employers should continue to use the methods in Publications NYS-50-T (dated 1/06) and NYS-50-T.1 (dated 1/10) to determine the amounts to be withheld for these taxes.
Vision Payroll Has Updated Withholding Tables in Use
Effective September 1, 2010, Vision Payroll is using the revised withholding calculations for all affected taxpayers.
This week’s question comes from Aaron, a business owner. We have several employees who work in Massachusetts, but live in neighboring states. Do I need to withhold state tax on wages paid to non-residents? Answer: Massachusetts requires employers to withhold state tax from wages paid to non-residents for services performed in Massachusetts. Most states have similar requirements that employers withhold tax on non-residents, but some states do not require withholding until a certain time or dollar limits are reached. Additionally, some states have setup reciprocal agreements with other states that allow the employees to be taxed in their home states. Massachusetts (and many other states) has special rules for unique occupations such as athletes, entertainers, and flight crewmembers. Contact Vision Payroll for further information on your unique situation.
Due to severe storms and flooding in New York on August 8, 2009, President Barack Obama declared the following counties a federal disaster area: Cattaraugus, Chautauqua and Erie. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after August 7, 2009 and before August 25, 2009 as long as the deposits were made by August 24, 2009. In addition, affected taxpayers will have until October 7, 2009 to file most tax returns. Contact Vision Payroll if you were affected by the severe storms and flooding and need further information on the relief provided by the IRS.
The federal minimum wage will increase to $7.25 on Friday, July 24, 2009. Therefore, all work performed after July 23, 2009 should be compensated at the higher rate. In addition, the minimum wage will also increase to $7.25 in the following areas: Delaware, Idaho, Indiana, Maryland, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, Puerto Rico, South Dakota, Texas, Utah, Virginia, and Wisconsin. Also, the minimum wage in the District of Columbia will increase to $8.25. Contact Vision Payroll if you have any questions on the minimum wage increases.
Effective May 1, 2009, revised withholding tables are in effect for the New York State personal income tax and the Yonkers resident personal income surcharge tax for certain taxpayers. Vision Payroll will be using the revised tables for all payrolls after April 30, 2009. These changes are required by recent law changes. There are no changes to the New York City personal income tax rates or the Yonkers nonresident earnings tax rate. The revisions are in accordance with the new rules promulgated in Publication NYS-50-T.1, Revised New York State and Yonkers Withholding Tax Computation Rules. Employers are advised that Form IT-2104, Employee’s Withholding Allowance Certificate, has also been revised to reflect the changes and employers should encourage impacted taxpayers to complete the revised form to prevent under-withholding. Contact Vision Payroll if you have any questions on these changes.
Thirty-six delivery men for various Vietnamese restaurants in New York City were awarded more than $4.6 million in back pay and damages in a recent case Ke, et al. v. Saigon Grill, Inc., et al., SDNY, 07cv2329 MHD, 10/21/2008. The court found that the defendants’ testimony was not credible as to hours worked by and wages paid to the plaintiffs. Plaintiffs had testified that they worked hours in excess of forty per week without receiving overtime pay and were not compensated at the minimum wage, both in violation of the Fair Labor Standards Act (FLSA); they stated that unlawful deductions from their pay were made by the defendants as supposed fines for things like late deliveries or failure to complete side work; they claimed entitlement to reimbursement for expenses incurred for bicycles and motorcycles used in the deliveries; they alleged retaliatory terminations for asserting their intention to pursue an FLSA complaint; and they sought additional pay under a New York state law that requires employees whose workday is longer than ten hours to receive “one hour’s pay ‘at the basic minimum hourly wage’”. The court ruled in favor of the plaintiffs on all these arguments and also ruled that the defendants’ failure to post any FLSA notices explaining the provisions of the law and the employees’ rights thereunder resulted in a suspension of the statute of limitations until the plaintiffs received notice of their rights. This equitable tolling doctrine allowed plaintiffs to claim back wages for a period of eight years, not the two or three years ordinarily allowed under the FLSA. Vision Payroll strongly recommends employers consult their labor law attorney to review their minimum wage, overtime, and deduction policies to ensure compliance with all applicable federal and state laws.
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Governor David Paterson recently signed the New York State Worker Adjustment and Retraining Act (WARN) into law. The law (Labor Law Article 25-A) is patterned after, but more stringent than, the federal WARN act. Effective February 1, 2009, private employers with fifty or more employees must provide written notice ninety days before any plant closing or mass layoff. The notice must be given to affected employees and their union representatives, the New York State Department of Labor, and the local workforce investment board. Companies that violate the Act subject themselves to suits for back pay and benefits as well as civil penalties of up to $500 per day. Due to inconsistencies with the federal WARN act and questions about some requirements of and definitions in the act, covered employers should consult their legal counsel before layoffs of any size.
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A New York City garment contractor was cited by the New York Department of Labor with wage and hour violations that resulted in underpayment of almost $3 million to more than 100 workers. Jin Shun Incorporated, which was reported to have produced women’s garments for several notable retailers, required employees to use two sets of time cards per week. Therefore, even though employees routinely worked six or seven twelve-hour days per week, no set of timecards would show more than forty hours worked per employee. Employees were provided with false answers to memorize and recite to investigators in the event of an audit. “This factory paid sweatshop wages, kept fake records, and coached employees to lie, even though it had signed retailer codes of conduct to comply with the law. The Department of Labor will use all legal tools to stop this mistreatment of workers,” said New York State Labor Commissioner M. Patricia Smith.
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States continued their crackdown on employers with overtime violations as New York announced a $1.23 million settlement with Finkelstein Morgan LLC and J. Siebold Construction Corporation (“Siebold”). The settlement represents all the unpaid overtime for the period from October 2002 through August 2006 plus damages. Siebold employed the workers to renovate several building owned or managed by Finkelstein Morgan. During that time period 284 employees who worked more than forty hours were paid straight time and not time-and-a-half as required by state and federal law.
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