| May STAT Updates
Federal
Beginning 4/1/12, a rehired employee (any employee “who was previously hired by the employer but has been separated from employment for at least 60 consecutive days”) must be included on new hire reports. Nebraska, Rhode Island & Washington amended their policies to follow the federal guidelines.
There is now a March 2012 version of the IRS guide called “Audit Techniques and Tax Law to Examine COBRA Cases (Continuation of Employee Health Care Coverage)” on the IRS website.
The IRS has made numerous corrections to Table 1 in IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
The IRS recently posted a new version of 2012 Form W-2 and the Forms W-2/W-3 instructions on its website.
The IRS has discontinued Form 944-SS, Employer's Annual Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands), beginning with the 2012 tax year.
There is now an April 2012 version of IRS Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, on the IRS website.
ARIZONA
Wage Payment. New legislation requires workers who are involuntarily terminated to be paid by the earlier of the next regular payday or within 7 working days (currently, 3 working days).
Unemployment. New legislation effective 7/1/12 exempts some employers from the 0.1% job training tax (JTT).
CALIFORNIA
Wage and Hour. The California Supreme Court has upheld the California Court of Appeals decision in Brinker Restaurant Corp. v. Superior Court that employers are required to provide meal and rest breaks to employees who work a certain number of hours, but are not required to ensure that the breaks are actually taken.
Wage Payment. The Division of Labor Standards Enforcement (DLSE) has created an April 2012 version of the template to give written notice to newly-hired employees about their pay.
DISTRICT OF COLUMBIA
Withholding. Effective 4/22, the highest District individual income tax rate that is in effect at the time a resident payee receives a lump-sum distribution from a retirement plan or retirement account is required to be withheld.
IDAHO
Withholding. Idaho has issued new withholding tables retroactive to 1/1/12. Employers should use the new withholding tables as soon as possible, but are not required to revise any previous 2012 withholding calculations.
IOWA
Withholding. The Iowa Department of Revenue has extended the deadline to file the first quarter Iowa withholding tax return until June 30, 2012, for taxpayers whose principal business or residence was affected by the April 14/15 storms in Fremont and Union counties.
KENTUCKY
Unemployment. Legislation has been passed to avoid being a credit reduction state for the 2012 tax year.
Withholding. A tax amnesty program will be conducted during the fiscal year ending June 30, 2013.
MARYLAND
Time Off. Effective 10/1/12, an employer may not require an individual who is summoned to jury duty for four or more hours to work an employment shift that begins under certain circumstances.
Wage Payment. Effective 6/1/12, an employer that makes payroll deductions from employees for voluntary campaign contributions or donations to political action committees is required to maintain records that include both the name and address of each of the contributors and provide the above information to the campaign finance entity or PAC.
MASSACHUSETTS
Unemployment. The Department of Unemployment has posted its 2012 contribution rate letter on its website.
MICHIGAN
Unemployment. New Form UIA 1028, Employer's Quarterly Wage/Tax Report, will replace the six forms beginning with third quarter returns.
NEBRASKA
Unemployment. Effective 7/19/12, employers are required to respond to DOL unemployment benefit information requests claims within ten days of the mailing or electronic transmittal of the DOL request.
NEVADA
Wage and Hour. The Nevada minimum wage rate will remain at $7.25 per hour for employees who receive qualified health benefits, and at $8.25 per hour for all other employees through 6/30/13.
NEW JERSEY
Unemployment. The Division of Employer Accounts has announced that employers will no longer receive an annual paper contribution rate notice, beginning with the fiscal year that starts on July 1. The notice will instead be available through the state's Tax Web Enabled System.
OREGON
Unemployment. A person who has ownership or leasehold interest in a passenger motor vehicle operating as a taxicab or a vehicle for nonemergency medical transportation is exempt from unemployment tax.
SOUTH DAKOTA
Unemployment. Military spouses still qualify for unemployment benefits if they leave their jobs to accompany a military spouse who has been reassigned. An employer's experience rating account will not be charged.
TENNESSEE
Garnishment. The Tennessee Court of Appeals has ruled that tips received by a waitress should not be included in the calculation of disposable earnings for garnishment purposes.
Unemployment. Military spouses still qualify for unemployment benefits if they leave their jobs to accompany a military spouse who has been reassigned. An employer's experience rating account will not be charged.
Wage and Hour. Effective 5/17/12, tipped employees in the food or beverage industry who report their tips to their employer may voluntarily waive their right to a 30-minute unpaid meal break by submitting a written waiver form. Both the employer and employee must consent to the waiver.
VIRGINIA
Unemployment. Domestic service employers may file and pay unemployment taxes annually beginning1/1/13.
WASHINGTON
Wage Payment. Effective 6/7/12, institutions of higher education can mandate direct deposit for their employees. The institutions may pay by payroll debit card if the employee does not designate a financial institution for direct deposit.
Garnishment. Effective 6/7/12, the amount exempt from garnishment is the greater of 35 times the federal minimum wage rate or 75% of disposable earnings.
WEST VIRGINIA
Withholding. Effective 1/1/13, the threshold for determining whether a taxpayer is required to pay all taxes electronically has been adjusted.
Unemployment. Effective 7/1/12, military spouses still qualify for unemployment benefits if they leave their jobs to accompany a military spouse who has been reassigned. An employer's experience rating account will not be charged.
CANADA
British Columbia. The minimum wage rate will increase to $10.25 per hour and the special minimum wage rate for liquor servers will increase to $9.00 per hour effective 5/1/12.
New Brunswick. The minimum wage rate increased to $10.00 per hour effective 4/1/12.
Nova Scotia. Effective 4/1/12, the minimum wage rate for experienced workers increased to $10.15 per hour. The minimum wage rate for inexperienced workers (less than three months of experience) is now $9.65 per hour.
Prince Edward Island. Effective 4/1/12, the minimum wage rate increased to $10.00 per hour.
Quebec. The minimum wage rate will increase to $9.90 per hour $8.55 per hour for tipped employees effective 5/1/12.
Yukon. The minimum wage rate increased to $9.27 per hour effectiv |
