| Federal Payroll News |     |
| State Payroll News | |
Florida Decreases Taxable Wage Base DOL Withdraws Proposed Rule on Minors in Agricultural Work The Department of Labor (DOL) has withdrawn a proposed rule dealing with minors working in the agricultural industries. The rule had drawn intense criticism in recent months. One of the more controversial provisions in the rule was the parental exemption that allowed children of any age who are employed by their parent or guardian, to perform any job on a farm owned or operated by that individual. Critics accused the DOL and the Obama Administration of failing to respect rural traditions and, in February 2012, the DOL announced that it would re-propose the regulation. In announcing the decision to withdraw the rule, the DOL asserted that the administration is "firmly committed to promoting family farmers and respecting the rural way of life, especially the role that parents and other family members play in passing those traditions down through the generations." That commitment, the DOL said, led to the decision to listen to the "thousands of comments expressing concerns about the effect of the proposed rules on small family-owned farms." The DOL stated that it will not pursue the regulation for the "duration of the Obama administration." Instead, the DOL and the Department of Agriculture will work with various rural stakeholders, including the American Farm Bureau Federation and 4-H to develop programs aimed at reducing accidents among minor workers in the agriculture industries and to promote safer working practices in the industries. (WHD News Release April 26, 2012.) Florida Decreases Taxable Wage Base Florida has decreased its taxable wage base from $8,500 to $8,000, effective retroactively to January 1, 2012. (Ch. 30, H. 7027, L. 2012.) Georgia Amends Nonresident Withholding Provisions Georgia has enacted legislation that amends the personal income tax withholding provision on nonresident distributions by requiring any partnership, S corporation, or limited liability company (LLC) that owns property or does business in Georgia to withhold a nonresident member's share of taxable income sourced to Georgia, whether distributed or not. The amount of tax withheld for each nonresident member is determined by multiplying the nonresident member's share of the taxable income sourced to Georgia by a rate of 4%. Such taxes are due on or before the due date for filing the income tax return for the partnership, S corporation, or LLC, without regard to any extension of time for filing. The written statement furnished to each nonresident member must include, among other items, the total amount of the nonresident member's share of taxable income sourced to Georgia. Further, a nonresident member's share of taxable income sourced to Georgia and subject to withholding under other provisions of Georgia law will not be subject to withholding under this provision. The law also provides an exemption from estimated tax payments with respect to any taxable year ending before the date two years after the date of the decedent's death in the case of the estate of such decedent or a testamentary trust. (H.B. 965, Laws 2012, effective May 1, 2012.) Idaho Sets 2012 Interest Rates For calendar year 2012, the applicable underpayment or overpayment interest rate is 4% simple interest, the same rate that was applicable in calendar year 2011. (Rules 35.02.01.310 and .704, Idaho State Tax Commission, effective February 27, 2012.) Indiana Announces Contribution Rates for 2012 For 2012, the surcharge rate is 8.0%. Applied rates for employers with an account credit reserve balance range from 0.540% to 4.104% and penalty rates for employers with an account credit reserve balance range from 2.620% to 6.184%. Applied rates for employers with an account debit reserve balance range from 5.292% to 7.992% and penalty rates for employers with an account debit reserve balance range from 7.372% to 10.072%. New employers pay a rate of 2.50% and new governmental employers pay a rate of 1.60% in 2012. New employers are exempt from the solvency surcharge. (DWD Communication.) Kentucky Occupational License Fees Lebanon Junction has increased its occupational license fee to 1% from 0.8%, effective January 1, 2012. (Telephone conversation, Circuit Clerk Lebanon Junction, May 11, 2012. Michigan Interest Rate Unchanged for Second Half of 2012 The annual rate of interest due on Michigan tax deficiencies and overpayments for the period from July 1, 2012, through December 31, 2012, remains at 4.25%. The effective annual rate of 4.25% was established at one percentage point above the adjusted prime rate charged by three commercial banks to large businesses. (Revenue Administrative Bulletin 2012-3, Michigan Department of Treasury, May 4, 2012.) New York Updates MCTMT Publication The New York Department of Taxation and Finance has updated its publication concerning the Metropolitan Commuter Transportation Mobility Tax (MCTMT). Specifically, the publication has been updated to provide guidance on computing, reporting, and paying the MCTMT for employers for calendar quarters beginning on or after April 1, 2012; and individuals who have net earnings from self-employment for tax years beginning on or after January 1, 2012. (Publication 420, New York Department of Taxation and Finance, May 2012; http://www.tax.ny.gov/bus/mctmt/mctmt_changes.htm.) New York Interest Rates Unchanged for Third Quarter of 2012 The New York Department of Taxation and Finance has announced the interest rates on overpayments and underpayments of New York taxes for the period of July 1, 2012, through September 30, 2012. The overpayment rate will remain 2% for taxes on withholding. The underpayment rate will remain 7.5% for taxes on withholding. (Release, New York Department of Taxation and Finance, May 8, 2012.) Ohio General Tax Amnesty Application Period Started The Ohio Department of Taxation has issued a reminder to taxpayers regarding the Ohio General Tax Amnesty, which allows taxpayers to pay, without penalty, most unreported or underreported state and local taxes, including individual income taxes, school district income taxes, sales taxes, excise taxes on motor fuels and tobacco, and the commercial activity tax. Under the program, taxpayers may pay taxes starting May 1, 2012, for taxes that were incurred and payable prior to May 1, 2011. Taxes paid under the program will not be subject to penalties, and taxpayers will only be required to pay half of the regular interest charge. (Information Release, Ohio Department of Taxation, May 1, 2012.) Rhode Island Amends Employment Security Act Rhode Island has amended its Employment Security Act as follows: Quarterly wage reports.The Department may utilize employee quarterly wage information submitted by employers to measure the progress of the state in meeting the performance measures developed in response to PubLNo 105-220, the Workforce Investment Act of 1998 (29 U.S.C. section 2801 et seq.). The Director also must make the quarterly wage information available, upon request, to agencies of other states, but only to the extent required by the Secretary of Labor and necessary for the valid administrative needs of those agencies. Wisconsin Explains Withholding Exemption for Election Workers According to a notice issued by the Wisconsin Department of Revenue, although all wages earned by election workers are subject to personal income tax, wages paid to election workers for services performed in national, state, county, and municipal elections are not subject to Wisconsin income tax withholding. Employers must report payments of $600 or more to election workers on Form W-2. Employers should not use federal Form 1099 or Wisconsin Form 9b. (News for Tax Professionals, Wisconsin Department of Revenue, May 7, 2012.) Wisconsin Amends Unemployment Insurance and Reserves Act Wisconsin has amended its Unemployment Insurance and Reserves Act, as follows: Concealment of benefit claim information. If a claimant, when filing his or her application for benefits or claim for any week, conceals any material fact relating to eligibility or any of the wages earned or paid for a week, that claimant is ineligible for benefits. The Department also must assess a penalty against the claimant in an amount equal to 15% of the benefit payments erroneously paid as a result of one or more acts of concealment. To recover a penalty assessed as a result of concealment, the Department may file a warrant against the claimant or may levy upon property belonging to the claimant. In addition, with respect to overpayments established by the Department after October 21, 2013, the penalty described above will be deposited in the Unemployment Reserve Fund. For overpayments established by the Department prior to October 21, 2013, the penalty will be deposited in the Unemployment Program Integrity. Availability for work. A claimant is not available for work in any week in which he or she is located in a country other than the United States or Canada for more than 48 hours, unless the claimant has authorization to work in that other country and there is a reciprocal agreement concerning the payment of unemployment benefits between that other country and the United. Interest on delinquent payments. The interest rate on the monthly annualized rate is either 9% or 2% more than the prime rate as published in the Wall Street Journal as of September 30 of the preceding year, whichever is greater, for each month or fraction thereof that the employer is delinquent. |
