Vision Payroll

Employment Security Commission (ESC) Chairman Lynn R. Holmes officially notified leaders of the General Assembly on Wednesday that she was suspending certain provisions of Senate Bill 532 because the provisions do not comply with federal law.

US DOL Had Threatened Eligibility of NC Employers to Receive FUTA Credit

In a September 22, 2011, letter from Gay M. Gilbert, Administrator in the Office of Unemployment Insurance of the US Department of Labor (DOL) to Chairman Holmes, the DOL requested that Chairman Holmes use her authority under North Carolina law to suspend certain provisions of the law. If the provisions had not been suspended and the law took effect November 1, 2011, the DOL would not certify North Carolina as in compliance with provisions of the FUTA Unemployment Tax Act (FUTA) and the Social Security Act (SSA). Without this certification, employers in North Carolina would not be eligible to receive the FUTA credit on Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.

Four Points of Law Found in Conflict

There were four parts of the law that the DOL had considered in relation to conformity issues. They are:

1. A provision that would allow employers thirty days to respond to a claim notice;
2. A provision that would permit the total reduction of benefit rights if an individual is arrested for or convicted of certain criminal behavior;
3. A provision that would permit an individual to be totally disqualified for unsatisfactory performance; and
4. A provision that would permit parties to waive the right to an appeal hearing by entering stipulations resolving the issues of an appeal.

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on the suspension of North Carolina law by Chairman Holmes.

This week’s question comes from Sylvia, a payroll manager. I thought I heard that the social security wage base would remain the same in 2011 as it was in 2010, but I can’t find anything official. Has the 2011 social security wage base been announced? Answer: Although the official announcement has not been made that for 2011 there will be no increase in the social security wage base, The 2010 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds has been released. In it, the Board of Trustees estimates that the 2011 social security wage base will remain unchanged at $106,800. The report includes the information about financial operations, legislative changes, and actuarial assumptions.

Second Straight Year with No Increase in Social Security Wage Base

If the prediction holds true, 2011 would be the third straight year that the wage base would be $106,800 and the maximum social security withholding would be $6,621.60. At this time, an increase in the wage base and maximum withholding is projected for 2012.

Social Security Wage Base Projected to Increase Over 40% by 2019

The Board of Trustees projects annual increases through 2019. Currently, the Board of Trustees estimates that the social security wage base will increase to $153,600 for the year 2019.

Vision Payroll Expects Official Announcement in October

When the Social Security Administration (SSA) makes the official announcement, most likely in October, Vision Payroll will provide updated amounts for 2011. Visit our Important Facts and Figures page for more details.

The Social Security Administration (SSA) announced a new online calculator that will provide immediate and personalized benefit estimates to help people plan for their retirement. According to the SSA, the calculator produces estimates that are based on your actual Social Security earnings record. You will need to provide your name, Social Security number, date and place of birth, and mother’s maiden name. You will be provided an estimated monthly benefit for an early retirement, full retirement, and a late retirement based on certain earnings assumptions.