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...
IRS Releases 2011 Form 940
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...
Question of the Week: 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...
California Is a Credit Reduction State for 2011
According to the California Employment Development Department, California will be a FUTA tax credit reduction state in 2011. Standard Credit Rates Is 5.4% for 2011 Generally, employers who pay their state unemployment tax by the due date for filing Form 940,...
Question of the Week: What Are the 2012 Highly Compensated Employee Limits?
This week’s question comes from Carla, a company president. Carla asks: We’re doing some compensation planning for next year. What are the 2012 Highly Compensated Employee Limits? Answer: The IRS has just released updated information for 2012. IRS Releases 2012 Highly...
Question of the Week: What Are the Updated Standard Industry Fare Level Rates?
The Standard Industry Fare Level (SIFL) rates for the second half of 2011 were published by the Transportation Department…
New Hampshire Unemployment Wage Base to Increase for 2012
The New Hampshire Department of Employment Security has announced an increase in the taxable wage base for 2012. The wage base will increase from $12,000 for 2011 to $14,000 for 2012. Third Consecutive Year the Wage Base Has Increased This is the third consecutive...
Michigan Offers Rebate for Expected Credit Reduction
According to the Unemployment Insurance Agency (UIA) of the State of Michigan Department of Licensing and Regulatory Affairs in Fact Sheet 139, the FUTA tax credit reduction rate will increase from 0.6% in 2010 to 0.9% in 2011. Since the determination will not be made...
Vermont Wage Base to Increase for 2012
Pursuant to legislation passed in 2010, the taxable wage base in Vermont will increase for 2012. The wage base will increase from $13,000 for 2011 to $16,000 for 2012. Third Consecutive Annual Increase This is the third consecutive year that the wage base will...
Tip of the Week: Twelve FAQs About the New York Interest Assessment Surcharge
As previously announced, New York has assessed most employers an Interest Assessment Surcharge (IAS). The New York Department of Labor has posted the following twelve FAQs about the IAS. 1. Why is the IAS being assessed? Due to the high rate of unemployment, New York,...
New York Assesses Interest Assessment Surcharge for 2011
The state of New York has announced the assessment of an Interest Assessment Surcharge (IAS) for 2011. The surcharge will be used to pay approximately $95 million in interest on loans to the federal government by September 30, 2011. New York Must Pay Interest on More...
NJ Lowers Unemployment Tax Rates for 2012 Rate Year
New Jersey Governor Chris Christie recently signed into law A-3819 (S-2730), which reduces the unemployment tax rates that employers would have otherwise had to pay during the 2012 rate year (July 1, 2011 through June 30, 2012). The rates will increase, however, from...
Massachusetts Releases Employer-Provided Health Care Benefits Update
The Massachusetts Department of Revenue (DOR) has released Technical Information Release (TIR) 11-5, Employer-Provided Health Care Benefits Update. This TIR updates TIR 07-16, Personal Income Tax Treatment of Employer-Provided Health Insurance Coverage for an...
Illinois Adds Unemployment Tax Surcharge and Increases Wage Base
Illinois Governor Pat Quinn recently signed HB 1030 into law. The new law adds an unemployment tax surcharge, increases the taxable wage base, and reduces maximum benefits, among other provisions. Surcharge Is for First Quarter of 2011 For the first quarter of 2011,...
Nebraska Reduces EFT Threshold Effective July 1, 2011
As of January 1, 2011, the Nebraska Department of Revenue (DOR) required the use of an electronic funds transfer (EFT) all payments of taxes or fees for tax programs, such as income or sales and use tax, if the taxpayer had made tax or fee payments above $20,000 for...
Question of the Week: Do We Need to Pay for Eight Hours of Work Because of the Switch to Daylight Saving Time?
This week’s question comes from Charlie, a manufacturing plant manager. We have a third shift that works from 11 pm to 7 am the following day. Some of the workers will work this Saturday night into Sunday. Do we need to pay for eight hours of work because of the...
Massachusetts Releases Payroll Unemployment Tax Rates for 2011
The Massachusetts Executive Office of Labor and Workforce Development (EOLWD) has released the 2011 contribution rates. Employers apply the rates to taxable payroll to determine the amount of tax due. Many 2011 Employer Rates Remain Unchanged Although the new...
Question of the Week: What Are the Updated Standard Industry Fare Level Rates?
This week’s question comes from Trevor, a company president. Some of our employees use our company aircraft for personal purposes. We need to value this and include it income for those employees. What are the updated Standard Industry Fare Level Rates? Answer: The...
Massachusetts Freezes Unemployment Tax Rate Schedule for 2011
Governor Deval Patrick recently signed legislation that will provide immediate relief to Massachusetts’ businesses by freezing employer contributions to the Unemployment Insurance (UI) Trust Fund at current levels. This new law prevents a scheduled rate hike from...
Massachusetts Releases 2011 UHI Contribution Rates
The Massachusetts Division of Unemployment Assistance (DUA) has released the UHI contribution rates for 2011. According to MGL c. 151A, §14G(f): There shall be a rate review board composed of the commissioner of medical assistance or his designee, the deputy director...
Washington Reduces 2011 Unemployment Tax Rates for Most Employers
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...
New York Unemployment Wage Base to Remain at $8,500 for 2011
The New York Department of Labor has announced the taxable wage base for 2011. The wage base will remain at $8,500 for 2011. Employer Rates for 2011 Announced Employer rates will go from a low of 1.5% to a high of 9.9%. The new employer rate is 4.1% for 2011. All...
New Hampshire Announces Surcharge to Remain in Effect for 2011
The New Hampshire Department of Economic Security (NHDES) has announced that because of the amount of unemployment benefits having been paid out and the solvency issue with the Unemployment Trust Fund, the NHDES will continue to invoke the 1.0% surcharge to all...
Tip of the Week: IRS Releases 2011 Spanish Language W-4
The 2011 Form W-4, Employee’s Withholding Allowance Certificate was released last month. The Spanish equivalent, 2011 Formulario W-4(SP), Certificado de Exención de la Retención del Empleado, is now available. February 16, 2011 Is Filing Deadline Employees claiming...
No Employer Surcharge for South Dakota in Q1 2011
An employer surcharge is not in effect for Q1 2011 in South Dakota. UI Trust Fund Balance Determines if Surcharge Is in Effect The surcharge automatically goes into effect when the UI Trust Fund balance is below $11 million at the end of any quarter. The balance was...
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