Vision Payroll

November 27, 2011

IRS Revamps Schedule A for 2011

IRS Revamps Schedule A for 2011
IRS Revamps Schedule A for 2011
The Internal Revenue Service (IRS) has issued a revamped Schedule A for Form 940 for 2011. The revised Schedule A includes a line for every state as well as the District of Columbia, Puerto Rico, and the US Virgin Islands.

Revamped Form Necessitated by Increase in Number of Credit Reduction States

A revision to Schedule A was required since the number of states and territories subject to a credit reduction increased from three in 2010 to twenty-one in 2011.

Each State Is Listed with the Relevant Rate

The individual lines for each state, DC, PR and VI are listed with the applicable credit reduction rate. Taxpayers should simply enter the wages paid in each state and multiply by that state’s rate. Wages should be entered even for states that have a zero credit reduction rate.

Not All Taxpayers Must File Schedule A

Not every taxpayer that is required to file Form 940 is required to file Schedule A. Taxpayers that pay wages in more than one state or taxpayers that pay wages in a credit reduction state must complete and file Schedule A. Taxpayers that pay wages only in a single state that is not a credit reduction state need not complete or file Schedule A.

Rely on Vision Payroll for Your Schedule A

Vision Payroll will complete and electronically file Schedule A for all tax pay and file clients. Employers will be able to download a copy of Schedule A for their records.

November 26, 2011

IRS Releases 2011 Form 940

US Virgin Islands and Twenty States Have a Credit Reduction in 2011
US Virgin Islands and Twenty States Have a Credit Reduction in 2011
The Internal Revenue Service (IRS) has released the 2011 Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, and accompanying instructions. Employers use Form 940 to report their annual Federal Unemployment Tax Act (FUTA) tax.

Twenty Credit Reduction States for 2011

There are twenty credit reduction states for 2011: Michigan, Indiana, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, Virginia, and Wisconsin as well as the US Virgin Islands. The credit reduction for most Michigan employers is 0.9% and for most Indiana employers it’s 0.6%. Most employers in the other credit reduction states and the US Virgin Islands have a credit reduction of 0.3%.

2011 FUTA Rate Decreased as of July 1, 2011

The FUTA tax rate decreased to 6.0% (before SUTA credits) on July 1, 2011. The rate for the first six months of 2011 was 6.2%. Under current law, the rate will remain at 6.0% throughout 2012. The 2011 Form 940 contains lines to report wages paid before July 1, 2011 and wages paid after June 30, 2011.

Vision Payroll to File Form 940 Electronically

Vision Payroll will file Form 940 for its clients electronically with the IRS and will not submit the paper version. Employers will be able to download a copy of Form 940 for their records.

November 25, 2011

Question of the Week: What Are the Credit Reduction States for 2011?

What Are the Credit Reduction States for 2011?
What Are the Credit Reduction States for 2011?
This week’s question comes from Victoria, a corporate controller.

Victoria asks:

I read that California is going to be a credit reduction state for 2011, but heard that they be more credit reduction states. What are the credit reduction states for 2011?

Answer: The Internal Revenue Service (IRS) has released a list of credit reduction states for 2011. There are a total of twenty states and one territory.

Standard Credit Rates Is 5.4% for 2011

Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, receive a credit 5.4% against their Federal Unemployment Tax Act (FUTA) tax. This credit is claimed on Form 940. Federal law provides for a reduction in the FUTA tax credit when a state has outstanding federal loans for two years. The credit reduction is calculated on Schedule A of Form 940.

Michigan Is a 0.9% Credit Reduction States

Since this is Michigan’s third consecutive year as a credit reduction state, the credit reduction for Michigan is 0.9% for 2011.

Indiana Is a 0.6% Credit Reduction States

Since this is Indiana’s second consecutive year as a credit reduction state, the credit reduction for Indiana is 0.6% for 2011. South Carolina, which was a first-year state for 2010, has paid off its loans and is not a credit reduction state for 2011.

Eighteen New Credit Reduction States for 2011

There are eighteen new credit reduction states for 2011. These states will have a credit reduction of 0.3% for 2011. The states are Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, Virginia, and Wisconsin. Additionally, the US Virgin Islands also has a credit reduction of 0.3%.

Contact Vision Payroll Today

For more information on the credit reduction states in 2011, be sure to contact Vision Payroll today.

October 16, 2011

North Carolina ESC Chair Suspends Certain Provisions of Unemployment Law

North Carolina Employment Security Commission Chairman Lynn R. Holmes
North Carolina Employment Security Commission Chairman Lynn R. Holmes
Employment Security Commission (ESC) Chairman Lynn R. Holmes officially notified leaders of the General Assembly on Wednesday that she was suspending certain provisions of Senate Bill 532 because the provisions do not comply with federal law.

US DOL Had Threatened Eligibility of NC Employers to Receive FUTA Credit

In a September 22, 2011, letter from Gay M. Gilbert, Administrator in the Office of Unemployment Insurance of the US Department of Labor (DOL) to Chairman Holmes, the DOL requested that Chairman Holmes use her authority under North Carolina law to suspend certain provisions of the law. If the provisions had not been suspended and the law took effect November 1, 2011, the DOL would not certify North Carolina as in compliance with provisions of the FUTA Unemployment Tax Act (FUTA) and the Social Security Act (SSA). Without this certification, employers in North Carolina would not be eligible to receive the FUTA credit on Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.

Four Points of Law Found in Conflict

There were four parts of the law that the DOL had considered in relation to conformity issues. They are:

  1. A provision that would allow employers thirty days to respond to a claim notice;
  2. A provision that would permit the total reduction of benefit rights if an individual is arrested for or convicted of certain criminal behavior;
  3. A provision that would permit an individual to be totally disqualified for unsatisfactory performance; and
  4. A provision that would permit parties to waive the right to an appeal hearing by entering stipulations resolving the issues of an appeal.

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on the suspension of North Carolina law by Chairman Holmes.

September 7, 2011

Tip of the Week: IRS Provides Tax Relief to Victims of Hurricane Irene

The Internal Revenue Service (IRS) is providing tax relief to individual and business taxpayers impacted by Hurricane Irene.

The IRS has announced that certain taxpayers in Connecticut, Massachusetts, New Jersey, New York, North Carolina, Puerto Rico and Vermont will receive tax relief, and other locations are expected to be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).

The tax relief postpones certain tax filing and payment deadlines to Oct. 31, 2011. It includes corporations and businesses that previously obtained an extension until Sept. 15, 2011, to file their 2010 returns and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter of 2011, which would normally be due Sept. 15.

Hurricane Irene, Courtesy of NASA/NOAA GOES Project
Hurricane Irene, Courtesy of NASA/NOAA GOES Project

The tax relief is part of a coordinated federal response to the damage caused by the hurricane and is based on local damage assessments by FEMA. For information on disaster recovery, individuals should visit disasterassistance.gov.

Tax Relief Available So Far

Filing and payment relief is currently available to taxpayers in federal disaster areas declared in Connecticut, Massachusetts, New Jersey, New York, North Carolina, Puerto Rico and Vermont. The IRS expects to announce tax relief for taxpayers in other areas as damage assessments continue. The IRS encourages taxpayers and tax practitioners to monitor Tax Relief in Disaster Situations for updates.

So far, IRS filing and payment relief applies to the following counties and municipalities:

  • Connecticut: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham;
  • Massachusetts: Berkshire and Franklin.
  • New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren.
  • New York: Albany, Clinton, Delaware, Dutchess, Essex, Greene, Montgomery, Nassau, Orange, Otsego, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Suffolk, Ulster, Warren and Westchester.
  • North Carolina: Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Perquimans, Pitt, Tyrrell, Vance, Warren, Washington and Wilson;.
  • Puerto Rico: Arroyo, Aguas Buenas, Caguas, Canovanas, Carolina, Cayey, Cidra, Coamo, Comerio, Humacao, Jayuya, Juncos, Loiza, Luquillo, Orocovis, Patillas, Ponce and San Juan.
  • Vermont: Addison, Bennington, Caledonia, Chittenden, Orange, Rutland, Washington and Windsor.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Hurricane Irene and need further information on the relief provided by the IRS.

September 6, 2011

NC Taxpayers Affected by Hurricane Irene Receive Extension of Time to File Returns and Pay Taxes

Filed under: News — Tags: , , , — Vision @ 2:29 pm
Hurricane Irene, Courtesy of NASA/NOAA GOES Project
Hurricane Irene, Courtesy of NASA/NOAA GOES Project
Due to the damage caused by Hurricane Irene in North Carolina beginning on August 25, 2011, President Barack Obama declared the following counties a federal disaster area: Beaufort, Carteret, Craven, Currituck, Dare, Halifax, Hyde, Lenoir, Onslow, Pamlico, Pitt, Tyrrell and Washington. Individuals who reside or have a business in these counties may qualify for tax relief.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after August 24, 2011 and before September 10, 2011 as long as the deposits are made by September 9, 2011. In addition, affected taxpayers have until October 31, 2011 to file most tax returns.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Hurricane Irene and need further information on the relief provided by the IRS.

July 30, 2011

North Carolina Reforms Unemployment Insurance Law

NC Speaker of the House Thom Tillis
The state of North Carolina legislature, over the veto of Governor Beverly Perdue, enacted Senate Bill (SB) 532, “An Act to Reform the Employment Security Laws of North Carolina by Creating the Division of Employment Security Within the Department of Commerce, Transferring the Functions of the Employment Security Commission to that Division, Making the Division Subject to Rule Making Under Article 2A of Chapter 150B of the General Statutes, and by Making Other Modifications and Conforming Changes to Align the Employment Security Functions of State Government Under the Direct Leadership of The Secretary of Commerce.”

Governor Purdue Comments on Her Veto of SB 532

Governor Perdue issued the following statement in conjunction with her veto of SB 532:

In Executive Order No. 85, I called for the transfer of the Employment Security Commission to the Department of Commerce for administrative purposes as a way to streamline State government. The General Assembly agreed with this idea by placing a provision in its budget bill directing that such a transfer take place. However, SB 532 goes far beyond an administrative transfer and proceeds to radically change the way that unemployment benefits are administered in this State — doing so in a way that calls into question the fairness of the entire process. As a result of these drastic changes, we have been informed by the United States Department of Labor (DOL) that any finding of a lack of conformity between this bill and federal law will result in North Carolina’s loss of money for its unemployment insurance program and that this bill will also raise taxes on all employers statewide who pay federal unemployment taxes. I cannot allow a bill to become law that will endanger our receipt of these much-needed federal funds for our unemployed citizens. Nor am I willing to approve this increased tax on our State’s employers.

House Speaker Thom Tillis Responded to Governor Perdue’s Veto

House Speaker Thom Tillis (R-Mecklenburg) released the following statement concerning the veto override of SB 532:

SB 532 originally passed the House with 104 votes, and I am pleased it was passed into law today. This bill streamlines the agency responsible for employment security in North Carolina, and brings more efficiency to the administration of unemployment benefits. It makes the system fairer for employers and unemployed citizens, while reforming portions of a system that has been plagued by fiscal mismanagement. This bill does not raise taxes; in fact, it is one of a series of steps necessary to eventually reduce the unemployment tax penalties paid by the employers. Finally, the ESC and the Governor still have the power to address any concerns by the DOL. This is a pro-business piece of legislation that provides much-needed clarity for businesses and their employees when facing the prospect of unemployment.

Impact of SB 532 on North Carolina Unemployment Law

The significant provisions of SB 532 include the following:

  • Creation of a new Division of Employment Security within the Department of Commerce,
  • Extension of the time allowed an employer from ten days to thirty days from mailing or delivery of the notice of claim filed to protest the claim,
  • Expansion of the term “misconduct connected with work” to include termination or suspension “from employment after arrest or conviction for an offense involving violence, sex crimes, or illegal drugs,”
  • Imposition of a total disqualification of benefits for “the failure to adequately perform any other employment duties as evidenced by no fewer than three written reprimands received in the 12 months immediately preceding the employee’s termination,” and

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions of the impact of SB 532 on North Carolina unemployment law.

April 23, 2011

NC Taxpayers Receive Extension of Time to File Returns and Pay Taxes

Filed under: News — Tags: , , , — Vision @ 2:58 pm
NC Taxpayers Receive Extension of Time to File Returns and Pay Taxes
NC Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to the damage caused by the severe storms, tornadoes, and flooding in North Carolina on April 16, 2011, President Barack Obama declared the following counties a federal disaster area: Alamance, Bertie, Bladen, Craven, Cumberland, Currituck, Greene, Halifax, Harnett, Hertford, Hoke, Johnston, Lee, Onslow, Pitt, Robeson, Sampson, Tyrell, Wake and Wilson.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after April 15, 2011 and before May 3, 2011 as long as the deposits were made by May 2, 2011. In addition, affected taxpayers have until June 30, 2011 to file most tax returns.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by the severe storms, tornadoes, and flooding and need further information on the relief provided by the IRS.

October 23, 2010

NC Taxpayers Receive Extension of Time to File Returns and Pay Taxes

Filed under: News — Tags: , , , — Vision @ 11:22 am
NC Taxpayers Receive Extension of Time to File Returns and Pay Taxes
NC Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to the damage caused by the severe storms, flooding, and straight-line winds in North Carolina on September 27, 2010, President Barack Obama declared the following counties a federal disaster area: Beaufort, Bertie, Brunswick, Craven, Hertford, Jones, Pender, Pitt, Onslow and Tyrrell.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after September 26, 2010 and before October 13, 2010 as long as the deposits were made by October 12, 2010. In addition, affected taxpayers had until November 26, 2010 to file most tax returns.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by the severe storms, flooding, and straight-line winds and need further information on the relief provided by the IRS.

November 30, 2009

North Carolina Unemployment Wage Base to Increase to $19,700

Filed under: News — Tags: , , , — Vision @ 9:25 am

The Employment Security Commission of North Carolina has announced an increase in the taxable wage base for 2010. The wage base will increase from $19,300 for 2009 to $19,700 for 2010. Contact Vision Payroll if you have any questions on the North Carolina unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

Older Posts »

Contact Us Vision Payroll
Client Remote Access