Vision Payroll

Due to the damage caused by the severe storms, tornadoes, straight-line winds, and flooding, in Alabama on April 15, 2011, President Barack Obama declared the following counties a federal disaster area: Autauga, Bibb, Blount, Calhoun, Chambers, Cherokee, Chilton, Choctaw, Clarke, Colbert, Coosa, Cullman, DeKalb, Elmore, Escambia, Etowah, Fayette, Franklin, Greene, Hale, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Limestone, Madison, Marengo, Marion, Marshall, Monroe, Morgan, Perry, Pickens, Shelby, St. Clair, Sumter, Talladega, Tallapoosa, Tuscaloosa, Walker, Washington and Winston.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after April 14, 2011 and before May 3, 2011 as long as the deposits were made by May 2, 2011. In addition, affected taxpayers have until June 30, 2011 to file most tax returns.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by the severe storms, flooding, straight-line winds, and flooding and need further information on the relief provided by the IRS.

As previously reported, the Internal Revenue Service (IRS) has released Notice 2011-28, Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage.

Notice 2011-28 Applies To Large Employers

Notice 2011-28 exempts smaller employers from the reporting requirement. If an employer files fewer than 250 Forms W-2 for 2011, then the employer will be exempt from the reporting requirement for 2012 Forms W-2. Furthermore, until further guidance is issued by the IRS, such employers will continue to be exempt from the next year’s reporting requirements as long as they are required to file fewer than 250 Forms W-2 for a calendar year.

Further Guidance on Health Insurance Reporting on Form W-2 to Come

Over the coming months, Vision Payroll will provide further information on the interim guidance on informational reporting to employees of the cost of their group health insurance coverage as outlined in Notice 2011-28.

Due to the damage caused by the severe storms, tornadoes, and straight-line winds in Oklahoma on April 14, 2011, President Barack Obama declared the following county a federal disaster area: Atoka.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after April 13, 2011 and before April 30, 2011 as long as the deposits were made by April 29, 2011. In addition, affected taxpayers have until June 30, 2011 to file most tax returns.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by the severe storms, flooding, and straight-line winds and need further information on the relief provided by the IRS.

Due to the damage caused by the severe storms, tornadoes, and flooding in North Carolina on April 16, 2011, President Barack Obama declared the following counties a federal disaster area: Alamance, Bertie, Bladen, Craven, Cumberland, Currituck, Greene, Halifax, Harnett, Hertford, Hoke, Johnston, Lee, Onslow, Pitt, Robeson, Sampson, Tyrell, Wake and Wilson.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after April 15, 2011 and before May 3, 2011 as long as the deposits were made by May 2, 2011. In addition, affected taxpayers have until June 30, 2011 to file most tax returns.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by the severe storms, tornadoes, and flooding and need further information on the relief provided by the IRS.

On April 8, 2011, Governor Susana Martinez vetoed portions of HB 59. The portion vetoed would have changed the contribution schedule from a floating schedule for 2012 to Schedule 3.

Schedule 3 Seen as Counter-Productive

According to Governor Martinez, “I do not support increasing job-killing taxes on small businesses while we are struggling to recover from a recession. Making it more expensive for small businesses to hire people would be counter-productive to our efforts to put more New Mexicans back to work.”

Protection of the Solvency of the Unemployment Fund Is a Priority

Governor Martinez also indicated support for returning to Schedule 1 for 2012. “I have already begun working with members of the legislature on a plan that will protect the solvency of the fund and keep the contribution rate locked at Schedule 1, in order to help small businesses create more jobs. I intend to include this issue on the agenda for the upcoming special session on redistricting. I seek a bi-partisan solution that will protect the solvency of the Unemployment Fund without crippling job growth.”

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on changes to New Mexico unemployment taxes.

This week’s question comes from Lindsay, an office manager. I read before that businesses were going to have expanded Form 1099-MISC reporting requirements starting in 2012. Now I’ve heard that these requirements may have been repealed. Have the expanded Form 1099 reporting requirements been repealed? Answer: The expanded reporting requirements for Form 1099 that were added as part of the Patient Protection and Affordable Care Act have been repealed.

Business Reporting Reverts To Previous Rules

Business reporting now reverts to the previous rules, requiring reporting of payments of $600 or more for services performed by non-employees. Most payments to corporations are exempt.

Reporting by Landlords Also Repealed

Expanded reporting requirements for landlords have also been repealed. Landlords not in the trade or business of renting property will have no Form 1099-MISC reporting requirements.

Contact Vision Payroll Today

Contact Vision Payroll for further information regarding the repeal of the Form 1099-MISC expanded reporting requirements.

According to the US Department of Labor, in the week ending April 9, the advance figure for seasonally adjusted initial claims was 412,000, an increase of 27,000 from the previous week’s revised figure of 385,000. The 4-week moving average was 395,750, an increase of 5,500 from the previous week’s revised average of 390,250.

Advance Seasonally Adjusted Insured Unemployment Rate Decreases

The advance seasonally adjusted insured unemployment rate was 2.9% for the week ending April 2, a decrease of 0.1 percentage points from the prior week’s unrevised rate of 3.0%.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending April 2 was 3,680,000, a decrease of 58,000 from the preceding week’s revised level of 3,738,000. The 4-week moving average was 3,728,750, a decrease of 20,750 from the preceding week’s revised average of 3,749,500.

The Occupational Safety & Health Administration (OSHA) requires that employers post Form 300A, Summary of Work Related Injuries and Illnesses be posted by all establishments covered by Part 1904. This summary page must be posted from February 1 to April 30 of the year following the year covered by the form.

Form 300 Should not Be Posted

OSHA’s Form 300, Log of Work Related Injuries and Illnesses, should not be posted.

Optional Worksheet Is Available

Employers may use the optional Worksheet to Help You Fill Out the Summary to calculate some numbers to enter on Form 300A. The numbers for average annual number of employees and total hours worked by all employees last year can be estimated using this optional worksheet.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the posting period for Form 300A.

New Mexico Governor Susana Martinez recently signed SB 284, which amends the existing the Uniform Interstate Family Support Act (UIFSA) statutory framework as required by the ratification of the Hague Family Maintenance Convention by the United States Senate in September 2010. These changes will allow New Mexico to work international child support cases with more nations.

UIFSA Amendments Are Mandated by the Federal Government

UIFSA is the basis for establishing and enforcing child support obligations in interstate cases. For many years, the United States has been negotiating with other nations to enhance the ability of states to work international child support cases. In September 2010, the U.S. Senate ratified the Hague Family Maintenance Convention, to which over 70 countries are signatories. The amendments to UIFSA that are contained in this bill are mandated by the federal government and must be enacted by all states and territories within by 2012.

Enactment of SB284 Ensures Compliance

The enactment of SB 284 ensures that New Mexico’s Child Support Enforcement program remains in compliance with federal requirements and will allow CSED to more efficiently process international child support cases with more nations than it does currently.

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on the changes to the New Mexico UIFSA statutory framework.

California Assembly Bill (AB) 36 was signed by Governor Jerry Brown on April 7, 2011. This bill brings California into conformity with the Federal government regarding the Health Care Acts of 2010 for state income tax purposes.

Change Is Retroactive To 2010

AB 36 now excludes health insurance premium payments and medical reimbursements for medical care expenses on behalf of adult children, from California Personal Income Tax (PIT) wages/income and PIT withholding, retroactive to the original enact date(s) of the Health Care Acts in 2010.

2010 Amendments May Be Filed on Form DE 678

For 2010, employers who calculated a fair market value benefit amount as imputed income for California Personal Income Tax (PIT) wages for their employees and subsequently withheld PIT on this value should issue Form W-2C to impacted employees that reflect the correct PIT wage amount. Employers can amend their California state payroll tax returns using our Tax and Wage Adjustment Form (DE 678).

2011 Amendments May be Filed on Form DE 9ADJ

For 2011, if employers calculated a fair market value of the health insurance premium and withheld the applicable PIT in the first quarter and have already filed their Quarterly Contribution Return and Report of Wages (DE 9), they can amend the return by using our Quarterly Contribution and Wage Adjustment Form (DE 9ADJ).

Correct 2011 Reports Before Filing, if Possible

For employers who have calculated PIT wages and withheld PIT from their employees for the first quarter but not yet filed the DE 9 and Quarterly Contribution and Wage Adjustment Form (Continuation) (DE 9C), you may choose to file and report the correct wages and withholding amounts while revising your payroll process internally for the over-reporting and withholding.

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on the changes to California taxation of health benefits.