Vision Payroll

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 that same tax program in a prior tax year.

Further Reduction Effective July 1, 2011

As of July 1, 2011, the threshold is reduced from $20,000 to $16,000. Further reductions are scheduled every six months until the threshold is $5,000 effective January 1, 2015.

Failure to Use EFT Will Result in a Non-Compliance Penalty

A $100 penalty for non-compliance will be imposed if required payments are not made by EFT. The penalty does not apply to individual income tax payments.

Contact Vision Payroll for More Information

Contact Vision Payroll for further questions on the changes to the Nebraska EFT threshold.

The Iowa Department of Human Services has amended Chapter 97, “Collection Services Center,” Iowa Administrative Code to require submission of child support payments by means of electronic funds transfer (EFT) no later than June 30, 2015, unless an exemption applies.

Phased-in Implementation Schedule for EFT

The schedule for implementation is based on the number of employees and is as follows:

• Employers with 1000 or more employees must be compliant by December 31, 2011,
• Employers with 500 or more employees must be compliant by December 31, 2012,
• Employers with 200 or more employees must be compliant by December 31, 2013,
• Employers with 100 or more employees with an agent for payroll processing must be compliant by December 31, 2013.

Contact Vision Payroll for Further Information

Contact Vision Payroll if you have further questions, including areas such as waiver requests and the alternative use of a secure website.