Vision Payroll

Due to the damage caused by the severe storms, tornadoes, straight-line winds, and associated flooding, in Tennessee on April 25, 2011, President Barack Obama declared the following counties a federal disaster area: Bledsoe, Bradley, Carroll, Cocke, Crockett, Greene, Hamilton, Hardin, Henry, Johnson, Knox, McMinn, Madison, Monroe, Montgomery, Rhea and Washington.

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 24, 2011 and before May 11, 2011 as long as the deposits were made by May 10, 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, flooding, straight-line winds, and associated flooding and need further information on the relief provided by the IRS.

While many employers have implemented English-only workplace policies, employers need to apply their rules appropriately in ways that avoid unfair discrimination claims.

Tennessee has enacted a new state law authorizing employers to impose an English-only workplace policy as long as it’s justified by a legitimate business purpose. The statute says that such a policy is not discriminatory under Tennessee law. Federal courts and the US Equal Employment Opportunity Commission (EEOC) have found such policies to be unlawfully discriminatory on the federal level. There are some situations in which the EEOC has said that business necessity justifies an English-only policy.

To learn more about these situations, which businesses are impacted, and steps employers should take before implementing an English-only policy, be sure to listen to English Language in the Workplace in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

Visit MyHRSupportCenter regularly, not only for our HRCasts, but also to get late-breaking compliance alerts, best practices to implement, and HR tools to use every day. If you haven’t yet signed up and would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In Notice 2010-48, the Internal Revenue Service (IRS) provided administrative “relief to sponsors of defined contribution pre-approved plans (i.e., master and prototype (‘M&P’) and volume submitter (‘VS’) plans).” Notice 2010-48 extended the following from April 30, 2010 to July 30, 2010:

• Deadline for restating affected pre-approved defined contribution plans,
• Deadline for submitting determination letters to the Service, and
• The § 401(b) remedial amendment period with respect to these plans.

The notice lists how a plan is considered in an affected area and lists the eight affected areas, all of which received previous relief from the IRS. The areas are the following:

1. Connecticut
2. Tennessee
3. Alabama
4. Mississippi
5. New Jersey
6. Massachusetts
7. Rhode Island
8. West Virginia

Contact Vision Payroll for further information on Notice 2010-48.

Due to the severe storms, flooding, straight-line winds and tornadoes in Tennessee beginning April 30, 2010, President Barack Obama declared the following counties a federal disaster area: Benton, Cannon, Carroll, Cheatham, Chester, Clay, Crockett, Davidson, Decatur, DeKalb, Dickson, Dyer, Fayette, Gibson, Giles, Hardeman, Hardin, Haywood, Henderson, Hickman, Houston, Humphreys, Jackson, Lauderdale, Lawrence, Lewis, Macon, Madison, Marshall, Maury, McNairy, Montgomery, Obion, Perry, Putnam, Robertson, Rutherford, Shelby, Smith, Stewart, Sumner, Tipton, Trousdale, Wayne, Williamson and Wilson. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after April 29, 2010 and before May 18, 2010 as long as the deposits are made by May 17, 2010. In addition, affected taxpayers will have until June 29, 2010 to file most tax returns. Contact Vision Payroll if you were affected by the severe storms, flooding, straight-line winds and tornadoes and need further information on the relief provided by the IRS.

Democratic Governor Phil Bredesen of Tennessee recently signed HB2324/SB2315 into law. Under the newly-enacted legislation, the 2009 wage base is increased from $7,000 to $9,000 retroactively to January 1, 2009. The wage base will remain at $9,000 until the trust fund balance exceeds $900 million, decrease to $8,000 if the trust fund balance exceeds $900 million but not $1 billion, and decrease to $7,000 if the trust fund balance exceeds $1 billion. Also, an additional fee of 0.6% on all unemployment insurance premium rates on Premium Tables 1, 2, and 3 is imposed as well. The additional tax will stay in place until the trust fund balance equals or exceeds $650 million.

Employers should report the additional wages from quarter one on their quarter two form or if their payroll accounting system does not allow this, employers may amend their quarter one filing.

According to James G. Neeley, Commissioner of the Tennessee Department of Labor and Workforce Development (the Agency), the Agency will send an “Employer Statement” that shows the balance due from quarter one because of the increase in tax rates. He also pledged that the Agency would administer the legislation “in as efficient and equitable a manner as possible.”

Contact Vision Payroll for assistance if you’re impacted by the changes in Tennessee unemployment law.