Vision Payroll

June 19, 2012

Washington Unemployment Wage Base to Increase to $39,800

Filed under: News — Tags: , , , , — Vision @ 4:33 pm
WA ESD Commissioner Paul Trause
WA ESD Commissioner Paul Trause
The Washington Employment Security Department has announced an increase in the taxable wage base for 2013. The wage base will increase from $38,200 for 2012 to $39,800 for 2013.

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

October 9, 2011

Washington Minimum Wage to Increase to $9.04 January 1, 2012

Judy Schurke, Director, Washington State Department of Labor & Industries
Judy Schurke, Director, Washington State Department of Labor & Industries
The Washington State Department of Labor & Industries announced recently that pursuant to Initiative 688, the minimum wage for the state of Washington would increase from $8.67 to $9.04 per hour effective January 1, 2012. The law requires an adjustment to the minimum wage be calculated each year.

Adjustment Is Tied to Changes in CPI-W

The adjustment is tied to the change in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12 months ending in August. The 4.258% increase in the CPI-W will result in an increase of $0.37 for 2011.

Washington Maintains Highest Minimum Wage in the Country

Washington has the highest minimum wage in the country, followed by Oregon. Oregon recently announced that its minimum wage would rise $0.30 to $8.80 an hour in 2012.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Washington minimum wage increase or visit our Minimum Wage Chart.

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.

July 3, 2011

Washington Unemployment Wage Base to Increase to $38,200

Filed under: News — Tags: , , , , — Vision @ 2:36 pm

WA ESD Commissioner Paul Trause
WA ESD Commissioner Paul Trause
The Washington Employment Security Department has announced an increase in the taxable wage base for 2012. The wage base will increase from $37,300 for 2011 to $38,200 for 2012.

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

March 4, 2011

Question of the Week: What Is a Taxable Wage Base?

What Is a Taxable Wage Base?
What Is a Taxable Wage Base?
This week’s question comes from April, an office manager. I’ve read that the taxable wage base has increased in New Hampshire for 2011, but I’m not sure of the impact. What is a taxable wage base? Answer: The taxable wage base is the amount of income that will be taxed in a particular year.

New Hampshire Taxable Wage Base Is $12,000

For 2011, the New Hampshire taxable wage base is $12,000. Therefore, all subject wages earned during 2011 by an employee up to $12,000 will be taxed for New Hampshire unemployment purposes. Once $12,000 of wages have been taxed for New Hampshire unemployment purposes, no additional New Hampshire unemployment tax will be due for that employee for the rest of 2011.

Taxable Wage Bases Range from $7,000 to $37,300

For 2011, the federal taxable wage base is $7,000. Three states, Arizona, California, Florida and Puerto Rico all have the lowest taxable wage base of $7,000. Washington has the highest taxable wage base at $37,300.

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 further questions or visit our Unemployment Taxable Wage Base page.

February 15, 2011

Washington Reduces 2011 Unemployment Tax Rates for Most Employers

Filed under: News — Tags: , , , — Vision @ 2:05 pm

Washington Governor Christine Gregoire recently signed Engrossed House Bill 1091 and Senate Bill 5135 into law. As a result, most employers will have their rates reduced from the already announced 2011 employer tax rates.

Washington Employment Security Department Releases Fact Sheet

According to a fact sheet released by the Washington Employment Security Department (ESD):

Tax rates for 2011 will be reduced for 90 percent of Washington employers. In fact, about half of them will pay lower rates than in 2010. The reduction will save employers $300 million in 2011, with a total savings of about $360 million from 2011 through 2017.

Going into 2011, unemployment tax rates were projected to increase by an average of 36 percent due to widespread layoffs during the recession. Even employers with few or no layoffs faced high increases because the shared (social) costs of the insurance system had increased substantially. Meanwhile, Washington’s unemployment trust fund has remained among the healthiest in the country. This provided a unique opportunity to provide tax relief to employers without jeopardizing the benefits fund.

The new law caps the social-cost component of the unemployment tax and lowers the multipliers that set the social-cost tax rate for rate classes 1-20 (rate classes 21-40 were unchanged). [ESD] will send revised tax-rate notices to affected businesses in March.

Vision Payroll Will Use Revised Rates in First Quarter Returns

Once issued by the ESD, Vision Payroll will adjust the rates for its clients in Washington to reflect the revised rates.

November 13, 2010

Washington Minimum Wage to Increase to $8.67 January 1, 2011

Filed under: News — Tags: , , , , , — Vision @ 1:07 pm
Judy Schurke, Director, Washington State Department of Labor & Industries
Judy Schurke, Director, Washington State Department of Labor & Industries
The Washington State Department of Labor & Industries announced recently that pursuant to Initiative 688, the minimum wage for the state of Washington would increase from $8.55 to $8.67 per hour effective January 1, 2011. The law requires an adjustment to the minimum wage be calculated each year.

Adjustment Is Tied to Changes in CPI-W

The adjustment is tied to the change in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12 months ending in August. The 1.4% increase in the CPI-W will result in an increase of $0.12 for 2011.

Attorney General Rob McKenna Concluded Minimum Wage Should Not Increase

In legal opinion AGO 2010 No. 7, the Washington State Office of the Attorney General concluded that since there was a net decrease in CPI-W since August 2008, the minimum wage should remain unchanged for 2011. Since several groups have filed suit challenging the increase in the minimum wage, it is likely that courts will be required to provide the final answer as to how the minimum wage should change, if at all, for 2011.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Washington minimum wage increase or visit our Minimum Wage Chart.

July 18, 2010

Washington Unemployment Wage Base to Increase to $37,300

Filed under: News — Tags: , , , — Vision @ 4:23 pm

The Washington Employment Security Department has announced an increase in the taxable wage base for 2011. The wage base will increase from $36,800 for 2010 to $37,300 for 2011. Contact Vision Payroll if you have any questions on the Washington unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

June 26, 2010

Twelve Lawsuits Alleging FLSA Violations by Bank of America to Be Centralized in Kansas

Twelve separate lawsuits from California, Florida, Kansas, Texas, and Washington, all of which allege that Bank of America (either Bank of America, NA or Bank of America Corp.) “routinely fails to pay its employees for off-the-clock overtime work in violation of the Fair Labor Standards Act [FLSA] and/or state law”, have been moved to the District of Kansas for coordinated or consolidated pretrial proceedings by the United States Judicial Panel on Multidistrict Litigation (the Panel). One of the cases “seeks to certify a class of all Bank of America non-exempt employees in the United States” for a class action suit against Bank of America.

The Panel considered not moving some of the cases. Some cases were moved even though the allegations were related to specific jobs, because the allegations were similar to those in other cases, “including allegations that Bank of America systematically prohibits overtime eligible employees from accurately recording their time and, as a result, does not pay its employees for all hours worked, including overtime pay.” Others considered similar “allege that that the timekeeping system used by Bank of America allows managers to modify or decrease the time recorded, and time worked is regularly deleted to avoid paying overtime.” Some cases moved included unrelated allegations, “such as discrimination (the Zhou action), retaliation, defamation and violation of the Family and Medical Leave Act (the Carrero action).” The Panel felt that any differences were not significant enough to outweigh the benefits of moving the cases for coordinated or consolidated pretrial proceedings.

The Panel recommended that, with the consent of the District of Kansas, the coordinated or consolidated pretrial proceedings be assigned to the Honorable John W. Lungstrum, who “has the experience, energy and time to handle this litigation efficiently.”

December 19, 2009

Washington Unemployment Wage Base to Increase to $36,800

Filed under: News — Tags: , , , — Vision @ 10:53 pm

The Washington Employment Security Department has announced an increase in the taxable wage base for 2010. The wage base will increase from $35,700 for 2009 to $36,800 for 2010. Contact Vision Payroll if you have any questions on the Washington unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

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