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.

March 27, 2011

USCIS Launches E-Verify Self-Check

USCIS Director Alejandro Mayorkas
On March 21, US Citizenship and Immigration Services (USCIS) launched E-Verify Self Check, the first online E-Verify program offered directly to the US workforce. E-Verify Self Check, a fast, simple, secure and free service, enables individuals to voluntarily check their own employment eligibility status.

First Phase Open To Residents of Five States and DC

USCIS is releasing E-Verify Self Check in phases, with the first phase only accessible to users who maintain an address and are physically located in Arizona, Idaho, Colorado, Mississippi, Virginia, or the District of Columbia.

Availability to Expand After Testing and Further Improvements

The availability of E-Verify Self Check will be limited for the initial launch as the service is tested and improved upon based on the outcomes of the initial implementation.

Contact Vision Payroll Today

Contact Vision Payroll today if you have further questions on E-Verify Self Check.

September 8, 2010

Tip of the Week: Virginia Will Abate Late Filing Penalties for Some Taxpayers

Filed under: News — Tags: , , — Vision @ 9:49 am

The Virginia Department of Taxation has announced that it will abate penalties for taxpayers who were unable to file withholding tax returns for July 2010 (due August 25, 2010) through the Business iFile system.

Business iFile System Was Unavailable August 25

Due to inability of some taxpayers to file through the Business iFile system, all taxpayers were given an extension of time to file.

Returns Had to Have Been Filed by September 7

July 2010 returns filed and paid in full by September 7, 2010 will be treated as timely filed.

Contact Virginia Department of Taxation if a Penalty Is Incorrectly Assessed

Taxpayers that filed and paid their July 2010 withholding return by the extended due date and still received a penalty notice should contact a customer service representative at (804) 367-8037 for assistance.

All Virginia July 2010 Withholding Returns Were Timely Filed for All Vision Payroll Clients

Vision Payroll successfully filed all July 2010 withholding returns for its clients on or before the August 25, 2010 deadline.

July 25, 2010

Virginia Announces New Employer W-2 Electronic Filing Requirements

Filed under: News — Tags: , — Vision @ 4:27 pm

The Commonwealth of Virginia announced new electronic filing requirements, beginning January 1, 2011. The changes reduce the number of employee statements that may be filed on paper and the method by which taxpayers may file.

Legislation effective January 1, 2011 requires employers who furnish 150 or more employee withholding statements for calendar year 2010 to file their W-2 statements electronically. Employers with less than 150 employee W-2s may continue to file these on paper; however, we encourage you to file electronically also. In addition, the Department of Taxation (TAX) will no longer support the Magnetic Media method of filing W-2s for tape as of October 1, 2010, and for CD and diskette as of January 1, 2011.

Employers required to file W-2s electronically and those with less than 150 employees that choose to file their W-2s electronically must use Web Upload to submit W-2 information to TAX.

Contact Vision Payroll if you have any questions on the new requirements.

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.

December 13, 2008

Virginia Payday Lenders Face New Restrictions January 1

In conjunction with recent amendments to the Payday Loan Act (Code of Virginia §§6.1-444 et seq.) that take effect January 1, 2009, the Virginia State Corporation Commission has adopted conforming regulations (Case Number BFI-2008-00295) on licensed payday lenders. In addition to requiring development of an internet database for licensed lenders to access and transmit loan information to, the new law made significant changes in interest rates and fees allowed, and placed restrictions on the frequency of such loans. Payday loans can be an expensive form of borrowing for employees; a two-week loan with a 15% fee works out to an Annual Percentage Rate (APR) of 391%. With the increased restrictions and higher fees allowed under the new law, employers may face more requests from employees for payday advances. Vision Payroll highly recommends consulting with your labor law attorney to ensure that any loans are properly documented and that deductions from pay checks comply with federal and state laws.

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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