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APS February 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, and updates to state electronic filing rules. Here are your February compliance updates:
IRS Releases Post-Shutdown Compliance Guides
The IRS released guidance for taxpayers as the agency continued to resume normal business operations after the government shutdown. The IRS has provided guidance on audits, collections, appeals, tax filing for individuals, tax court, and the taxpayer advocate service.
2019 Minimum Wage Changes
The following states have announced changes to their minimum wage rates beginning January 1, 2019:
- New Jersey - $10.00
- California - $12.00
2019 State Unemployment Wage Bases
Seven states have announced their unemployment taxable wage bases for 2019. The following states have SUTA wage base changes for 2019:
- District of Columbia - $9,000
- Florida - $7,000
- Massachusetts - $15,000
- Mississippi - $14,000
- New York - $11,400
- Puerto Rico - $7,000
- Virginia - $8,000
2019 State Unemployment Tax Rates
The following states have announced their 2019 unemployment tax rates:
Out-of-state employers and employees working in disaster recovery areas in New Jersey will be exempt from state and unemployment taxes and income tax withholding.
New York’s unemployment tax rates will be the following:
- 0.6 percent to 7.9 percent for experienced employers including a subsidiary tax with rates from 0.525 percent to 0.925 percent and a reemployment-services contribution of 0.075 percent.
- 3.2 percent for new employers including a subsidiary tax rate of 0.625 percent and a reemployment-services contribution of 0.075 percent.
Mississippi’s unemployment tax rates will be the following:
- 0.2 percent to 5.6 percent for experienced employers.
- 1.2 percent for the first year, 1.3 percent for the second year, and 1.4 percent for the third year for new employers.
A workforce investment and training surtax of 0.2 percent will be added to unemployment tax rates for 2019.
2019 State Withholding Tables and Methods
The following states have announced their 2019 withholding tables and methods:
The state released a new version of Form DE 4 (Employee’s Withholding Allowance Certificate) for 2019. The form’s new version contains updates on the instructions to show California’s tax brackets for 2019 and the updated allowance value of $129.08.
Kentucky has released the state’s 2019 Form K-5C (Corrected Report of Kentucky Withholding Statements) to be used for making corrections to Form K-5 (Kentucky Withholding Statements). Form K-5C allows employers to make corrections to information on Form K-5 that includes tax reported, employee information, social security numbers, state wages or payments, state tax withheld, and last names.
Vermont released a revised version of Vermont’s Form W4-VT(Employee’s Withholding Allowance Certificate) for 2019. The new version includes an allowances worksheet to determine how many allowances to claim and allows employees to claim exemption from Vermont withholding.
The state’s business tax deadline for Forms W-2 (Wage and Tax Statement) has been extended to February 4, 2019, due to the severe cold weather that affected the state in January.
State Electronic Filing Rules
The following states have updated state electronic filing rules for 2018 and 2019:
The deadline for filing 2018 Forms W-2 for the state was extended to February 28, 2019, due to an issue with the state’s electronic filing system.
Due to severe weather that has affected the state recently, Michigan has extended its filing deadline for 2018 Forms W-2 to February 7, 2019.
The deadline for filing Forms 499R-W-2PR (Withholding Statement) and Forms 499R-2 (Reconciliation Statement of Income Tax Withheld) has been extended until February 28, 2019.
2019 State Underpayment Interest Rates
The following states have updated underpayment interest rates for 2019:
- New York - 10 percent
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