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February, 2019

February 2019 Compliance Updates

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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:

Post-Shutdown Compliance Guides

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.

Wage Changes

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
Wage Base

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
Tax Rates

2019 State Unemployment Tax Rates

The following states have announced their 2019 unemployment tax rates:

New Jersey

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

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

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.

Tables and Methods

2019 State Withholding Tables and Methods

The following states have announced their 2019 withholding tables and methods:

California

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

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

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.

Wisconsin

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.

Electronic Filing Rules

State Electronic Filing Rules

The following states have updated state electronic filing rules for 2018 and 2019:

Iowa

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.

Michigan

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.

Puerto Rico

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.

Interest Rates

2019 State Underpayment Interest Rates

The following states have updated underpayment interest rates for 2019:

  • New York - 10 percent

State Unemployment wage bases

For more updates on state unemployment wage base changes, visit our SUTA Wage Bases page.

FUTA Credit Reductions

For more updates on state eligibility, visit our FUTA Credit Reductions page.

Payroll Tax Rates and Changes

Visit our Payroll Taxes: Rates and Changes page to make sure you stay compliant.

QUOTE

Linda

Business Administrator, Christ’s Church

The support for onboarding is excellent and their customer service is top notch. APS worked to get all of our needs met, and they continue to be problem solvers for us. Initially, I needed help navigating the system and they worked with me until I was comfortable and confident using the system.

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