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APS March Compliance Updates
APS reports on relevant, impactful compliance updates each month to help keep you at the top of your compliance game. Updates this month include the release of state unemployment wage bases, state withholding tables and methods changes, as well as updates to state electronic filing rules. Here are your March compliance updates:
IRS SET TO RELEASE 2020 FORM W-4 IN MAY 2019
The IRS is set to release the first draft of the 2020 Employee’s Withholding Allowance Certificate (Form W-4) on May 31, 2019. The revised form is to reflect changes made in the tax code overhaul.
IRS UPDATES GUIDE ON INCOME WITHHOLDING AND ESTIMATED TAXES
The IRS has updated its annual guide for withholding and estimated taxes. Changes to the guide include methods for determining withholdings and estimated taxes, calculating tax amounts, and standard deductions. The standard deduction for single filers has increased from $12,000 to $12,200 and for married couples, the standard deduction is $24,400, up from $24,000.
LABOR DEPARTMENT ISSUES OVERTIME PROPOSAL FOR SALARY THRESHOLDS
PAYROLL CARD PROTECTIONS TO TAKE EFFECT IN APRIL
The Bureau of Consumer Financial Protection issued expanded protection for prepaid card and payroll accounts that will take effect on April 1, 2019. Those issuing prepaid card accounts are required to provide card agreements to the Consumer Financial Protection Bureau by May 1, 2019. New protections include requirements for payroll card accounts including disclosures, change-in-terms notices, time periods covered in transaction histories, content of statements, account history, and overdraft fees.
STATE ELECTRONIC FILING RULES
The following states have updated state electronic filing rules for 2018 and 2019:
North Dakota
North Dakota employers are now required to file electronically if they are filing at least 10 Forms W-2. Payroll service providers are also required to file Forms W-2 electronically.
Utah
Starting July 1, 2019, Utah employers are required to electronically file unemployment tax and wage reports. The new requirement will affect employers with at least 250 employees and administrators filing reports on behalf of at least 100 employees. Reports can be filed through the department’s online portal.
2019 STATE UNDERPAYMENT INTEREST RATES
The following states have updated underpayment interest rates for 2019:
ALABAMA OFFERS STATE TAX EXTENSIONS FOR SEVERE WEATHER
The IRS has given an extension to Alabama employers who were victims of recent tornadoes and severe storms to file business tax returns. Employers now have until July 31, 2019, instead of a starting deadline of March 3, 2019. The IRS has also granted an extension for federal taxes. Penalties on payroll and excise tax deposits that were due March 3, 2019, will not be applied if deposits are made by March 18, 2019.
CALIFORNIA PROPOSES RULEMAKING ON MULTIEMPLOYER WAGE LIABILITY
DENVER TO RAISE CITY WORKER, CONTRACTOR PAY
Denver’s city council passed a bill (19-0163) to raise the hourly minimum wage to $13 an hour for Denver city workers and contractors. The hourly minimum wage raise will take effect on July 1, 2019. The measure also includes adjusted wage rates for 2020 and 2021. The measure covers city workers and contractors who work on city property providing security, cargo, catering, hospitality, and maintenance services.
FREMONT, CALIFORNIA NONPROFITS EXEMPT FROM WAGE ORDINANCE
MICHIGAN INTRODUCES BILL TO RAISE MINIMUM WAGE
NEBRASKA OFFERS STATE TAX EXTENSIONS FOR FLOOD VICTIMS
NEW HAMPSHIRE LAWMAKERS PASS PAID-LEAVE BILL
NEW JERSEY TO REQUIRE PRE-TAX PERK FOR TRANSIT COSTS
NEW MEXICO LAWMAKERS PASS INCREASED NEW MEXICO MINIMUM WAGE BILL
New Mexico Minimum Wage Bill
New Mexico lawmakers have passed a bill to increase the state’s minimum wage to $12 an hour, up from $7.50 an hour. This bill will also increase the minimum wage for tipped workers from $2.13 to $3 an hour by 2023.
New Mexico Bill on Domestic Worker Wages
New Mexico passed a bill that would allow domestic workers to no longer be exempt from state minimum wage standards. The measure would also allow the New Mexico Department of Workforce Solutions to enforce workers’ rights, investigate home-care and domestic workers’ complaints and recover wage and damages.
SOUTH DAKOTA UNEMPLOYMENT TAX RATES
VIRGINIA TO LIMIT WAGE EXEMPTIONS
WASHINGTON EXTENDS FIRST QUARTER PAID FAMILY LEAVE RETURN DEADLINE
WEST VIRGINIA ADDS OVERTIME EXEMPTION FOR AMUSEMENT PARK WORKERS
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