Vision Payroll

September 30, 2011

Question of the Week: What Are the IRS and DOL Doing About Workers Who Receive 1099s?

IRS Commissioner Douglas H. Shulman
IRS Commissioner Douglas H. Shulman
This week’s question comes from Steve, a small business owner.

Steve asks:

I’ve read about the Voluntary Classification Settlement Program (VCSP) and its application process with the Internal Revenue Service (IRS). What are the IRS and Department of Labor (DOL) doing about workers who receive 1099s?

Answer: The IRS and DOL are entering into agreements that include the IRS and DOL as well as several states to share information and coordinate enforcement of current laws and regulations.

Memoranda Signed at Washington Ceremony

Secretary of Labor Hilda L. Solis recently hosted a ceremony at DOL headquarters in Washington to sign a memorandum of understanding with the IRS that will improve departmental efforts to end the business practice of misclassifying employees in order to avoid providing employment protections. In addition, labor commissioners and other agency leaders representing seven states signed memoranda of understanding with the department’s Wage and Hour Division (WHD) and, in some cases, its Employee Benefits Security Administration, Occupational Safety and Health Administration, Office of Federal Contract Compliance Programs and Office of the Solicitor. The signatory states are Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah and Washington. Secretary Solis also announced agreements for the WHD to enter into memoranda of understanding with the state labor agencies of Hawaii, Illinois and Montana, as well as with New York’s attorney general.

DOL and IRS Will Share Information with Participating States

The memoranda of understanding will enable the DOL to share information and coordinate law enforcement with the IRS and participating states in order to level the playing field for law-abiding employers and ensure that employees receive the protections to which they are entitled under federal and state law.

Secretary Solis: We’re Standing United to End the Practice of Misclassifying Employees

“We’re here today to sign a series of agreements that together send a coordinated message: We’re standing united to end the practice of misclassifying employees,” said Secretary Solis. “We are taking important steps toward making sure that the American dream is still available for all employees and responsible employers alike.”

Commissioner Shulman: We Will Work Together More Efficiently to Address Worker Misclassification Issues

“This agreement takes the partnership between the IRS and DOL to a new level,” said IRS Commissioner Doug Shulman. “In this new phase of our relationship, we will work together more efficiently to address worker misclassification issues, and better serve the needs of small businesses and employees.”

Misclassification Can Create Economic Pressure for Law-Abiding Business Owners

Business models that attempt to change, obscure or eliminate the employment relationship are not inherently illegal, unless they are used to evade compliance with federal labor laws — for example, if an employee is misclassified as an independent contractor and subsequently denied rights and benefits to which he or she is entitled under the law. In addition, misclassification can create economic pressure for law-abiding business owners.

Memoranda Arose as Part of the Misclassification Initiative

These memoranda of understanding arose as part of the department’s Misclassification Initiative, which was launched under the auspices of Vice President Biden’s Middle Class Task Force with the goal of preventing, detecting and remedying employee misclassification.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the memoranda of understanding.

April 3, 2011

Utah to Recognize Foreign Support Orders

Filed under: News — Tags: , , — Vision @ 4:11 pm
Utah Governor Gary Herbert
Utah Governor Gary Herbert
Governor Gary Herbert recently signed SB 34, Uniform Interstate Family Support Act. Highlights of the bill include:

  • Provision of procedures for recognizing foreign support orders;
  • Definitions of “convention”, “foreign country”, “foreign support order”, and “foreign tribunal; and
  • Incorporation of provisions for filing, modification, and enforcement of support orders issued by foreign countries that have comity with the United States.

SB 34 Effective July 1, 2013

The legislation is effective July 1, 2013.

Contact Vision Payroll Today

Contact Vision Payroll today if you have questions on payroll processing in Utah.

March 26, 2011

Utah Gives Employees Control over Union Dues Deductions

Filed under: News — Tags: , , — Vision @ 3:58 pm
Utah Governor Gary Herbert
Utah Governor Gary Herbert
Governor Gary Herbert recently signed SB 206, Labor Organization Provisions in Teacher Contracts. Highlights of the bill include:

  • Requirement that an employer promptly cease or commence a union dues wage deduction upon the written request of the employee;
  • Statement that an employee’s request to cease a union dues wage deduction may not be conditioned on the labor organization’s advance notice or consent;
  • Statement that a labor organization is not liable to an employee for any claim, service, or benefit that is available only to a member of the organization if the employee requests cessation of union dues wage deductions;
  • Statement that the rights described in this bill cannot be waived.

Technical Corrections Also Applied

Additionally, certain technical corrections were also made in the legislation.

Contact Vision Payroll Today

Contact Vision Payroll today if you have questions on payroll processing in Utah.

December 14, 2010

Utah Unemployment Wage Base to Increase to $28,300 for 2011

Filed under: News — Tags: , , , — Vision @ 8:10 am
Kristen Cox, Executive Director, Utah Department of Workforce Services
Kristen Cox, Executive Director, Utah Department of Workforce Services
The Utah Department of Workforce Services has announced an increase in the taxable wage base for 2010. The wage base will increase from $28,300 for 2010 to $28,600 for 2011.

Minimum Tax Rate Doubles

The minimum tax rate has doubled from 0.2% for 2010 to 0.4% for 2011.

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 the Utah unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

December 13, 2009

Utah Unemployment Wage Base to Increase to $28,300

Filed under: News — Tags: , , , — Vision @ 11:44 pm

The Utah Department of Workforce Services has announced an increase in the taxable wage base for 2010. The wage base will increase from $27,800 for 2009 to $28,300 for 2010. Contact Vision Payroll if you have any questions on the Utah unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

July 22, 2009

Tip of the Week: Minimum Wage Hikes Take Effect this Week

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.

July 20, 2008

State Minimum Wages to Increase

Several states have minimum wage increases effective for work performed after July 23, 2008. Idaho, Indiana, Maryland, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Oklahoma, Puerto Rico, South Dakota, Texas, Utah, and Virginia all have increases to $6.55 to match the federal minimum wage. The District of Columbia minimum wage increases to $7.55. Different minimum wages may be paid to certain classes of employees in some situations. Contact Vision Payroll if you have any questions on minimum wage law changes.

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