APS March 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, as well as updates to state electronic filing rules. Here are your March compliance updates:
- IRS Set to Release 2020 Form W-4 in May 2019
- IRS Updates Guide on Income Withholding and Estimated Taxes
- Labor Department Issues Overtime Proposal for Salary Thresholds
- Payroll Card Protections to Take Effect in April
- State Electronic Filing Rules
- 2019 State Underpayment Interest Rates
- Alabama Offers State Tax Extensions for Severe Weather
- California Proposes Rulemaking on Multiemployer Wage Liability
- Fremont, California Nonprofits Exempt from Wage Ordinance
- Denver to Raise City Worker, Contractor Pay
- Michigan Introduces Bill to Raise Minimum Wage
- Nebraska Offers State Tax Extensions for Flood Victims
- New Hampshire Lawmakers Pass Paid-Leave Bill
- New Jersey to Require Pre-Tax Perk for Transit Costs
- New Mexico Lawmakers Pass Increased New Mexico Minimum Wage Bill
- South Dakota Unemployment Tax Rates
- Virginia to Limit Wage Exemptions
- Washington Extends First Quarter Paid Family Leave Return Deadline
- West Virginia Adds Overtime Exemption for Amusement Park Workers
IRS Set to Release 2020 Form W-4 in May 2019
IRS Updates Guide on Income Withholding and Estimated Taxes
The IRS has updated its annual guide for withholding and estimated taxes. Changes to the guide include methods for determining withholdings and estimated taxes, calculating tax amounts, and standard deductions. The standard deduction for single filers has increased from $12,000 to $12,200 and for married couples, the standard deduction is $24,400, up from $24,000.
Labor Department Issues Overtime Proposal for Salary Thresholds
The Labor Department issued an overtime proposal for salary thresholds of workers who earn $679 a week or $35,308 annually, an increase from current salary thresholds of $455 a week and $23,660 a year. The Labor Department plans to propose updates to the thresholds every four years and requests comments on whether the threshold should be regularly reviewed for adjustments. The proposal was submitted to the Federal Register and a 60-day comment period on the proposal will begin.
Payroll Card Protections to Take Effect in April
The Bureau of Consumer Financial Protection issued expanded protection for prepaid card and payroll accounts that will take effect on April 1, 2019. Those issuing prepaid card accounts are required to provide card agreements to the Consumer Financial Protection Bureau by May 1, 2019. New protections include requirements for payroll card accounts including disclosures, change-in-terms notices, time periods covered in transaction histories, content of statements, account history, and overdraft fees.
State Electronic Filing Rules
State Electronic Filing Rules
The following states have updated state electronic filing rules for 2018 and 2019:
North Dakota employers are now required to file electronically if they are filing at least 10 Forms W-2. Payroll service providers are also required to file Forms W-2 electronically.
Starting July 1, 2019, Utah employers are required to electronically file unemployment tax and wage reports. The new requirement will affect employers with at least 250 employees and administrators filing reports on behalf of at least 100 employees. Reports can be filed through the department’s online portal.
2019 State Underpayment Interest Rates
2019 State Underpayment Interest Rates
The following states have updated underpayment interest rates for 2019:
- Alabama - 6 percent
- Massachusetts - 7 percent
- Virginia - 8 percent
Alabama Offers State Tax Extensions for Severe Weather
The IRS has given an extension to Alabama employers who were victims of recent tornadoes and severe storms to file business tax returns. Employers now have until July 31, 2019, instead of a starting deadline of March 3, 2019. The IRS has also granted an extension for federal taxes. Penalties on payroll and excise tax deposits that were due March 3, 2019, will not be applied if deposits are made by March 18, 2019.
California Proposes Rulemaking on Multiemployer Wage Liability
California’s labor commissioner proposed rulemaking to ensure that multiple employers are held jointly responsible for wages owed to workers who are provided by labor contractors. The rulemaking also proposes a definition of wages and recordkeeping requirements for determining liability among multiple client employers. The hearing on the proposed regulations is set for April 26, 2019.
Fremont, California Nonprofits Exempt from Wage Ordinance
Fremont’s city council voted to amend its minimum wage ordinance to exempt nonprofits. Workers younger than 21 and employed by a nonprofit for after-school or summer employment, or are a student intern, volunteer, or trainee for up to 120 days are exempt from the ordinance. The hourly minimum wage ordinance required Fremont’s hourly minimum wage to increase to $15 an hour by 2020 with employers with at least 26 employees and 2021 for employers with up to 25 employees.
Denver to Raise City Worker, Contractor Pay
Denver’s city council passed a bill (19-0163) to raise the hourly minimum wage to $13 an hour for Denver city workers and contractors. The hourly minimum wage raise will take effect on July 1, 2019. The measure also includes adjusted wage rates for 2020 and 2021. The measure covers city workers and contractors who work on city property providing security, cargo, catering, hospitality, and maintenance services.
Michigan Introduces Bill to Raise Minimum Wage
Michigan state representatives proposed a bill that would raise the state’s hourly minimum wage to $12 an hour by 2022.
Nebraska Offers State Tax Extensions for Flood Victims
Nebraska victims of the recent flooding have been offered filing and payment extensions for state taxes. Returns and payments that were due from March 15, 2019, to April 14, 2019, are now due April 15, 2019.
New Hampshire Lawmakers Pass Paid-Leave Bill
New Jersey to Require Pre-Tax Perk for Transit Costs
New Jersey passed S.B. 1567 which requires employers with more than 20 employees to give employees the option to set aside wages on a pre-tax basis for purchasing transit passes, parking passes, and other qualified transportation costs. Employers will face a $100 to $250 first-time penalty if they violate the new law.
New Mexico Lawmakers Pass Increased New Mexico Minimum Wage Bill
New Mexico Minimum Wage Bill
New Mexico lawmakers have passed a bill to increase the state’s minimum wage to $12 an hour, up from $7.50 an hour. This bill will also increase the minimum wage for tipped workers from $2.13 to $3 an hour by 2023.
New Mexico Bill on Domestic Worker Wages
New Mexico passed a bill that would allow domestic workers to no longer be exempt from state minimum wage standards. The measure would also allow the New Mexico Department of Workforce Solutions to enforce workers’ rights, investigate home-care and domestic workers’ complaints and recover wage and damages.
South Dakota Unemployment Tax Rates
South Dakota passed a bill (H.B. 1034) that would decrease unemployment tax rates for experienced employers in 2020. Schedule B tax rates will be the following under the new law:
- Zero to 0.8 percent for positive-rated employers
- 1.3 to 9.3 percent for negative-rated employers
Schedule B may be in effect for 2020 if the state’s unemployment trust fund meets solvency requirements.
Virginia to Limit Wage Exemptions
Virginia passed S.B. 1079 to remove Virginia’s minimum wage exemptions for ushers, doormen, concession attendants, and cashiers in theaters starting July 1, 2019. Workers with employers with up to three employees and babysitters who are employed more than 10 hours a week will no longer be exempt from Virginia Minimum Wage Act requirements under the new bill.
Washington Extends First Quarter Paid Family Leave Return Deadline
Washington employers have been given an extension to report and remit paid family-leave contributions for the first quarter. First quarter reports were originally due April 30, 2019, and have been extended to July 31, 2019, the same due date for second quarter reports.
West Virginia Adds Overtime Exemption for Amusement Park Workers
West Virginia seasonal amusement park workers will be exempt from state maximum hour rules for overtime pay starting May 21, 2019, under bill S.B. 377. Workers who have been employees as seasonal employees at amusement parks for less than seven months are exempt from the maximum hour requirements of the state overtime law.
How APS Can Help
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APS is different because of our personalized approach to technology and service. As a result, we continually maintain a 98% customer retention rate. For the past five years, we have ranked as a High Performer, the #1 software company in Louisiana, as well as Best Customer Support, Ease-of-Use, Functionality, and Product Quality by G2 Crowd.
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