November Compliance Updates: Tax Cuts and FUTA
Here are your November compliance updates:
- Overtime Rule Appeal and Potential Automatic Updates
- Congress Reviews Tax Cuts and Jobs Act
- ACA Employer Mandate Penalty Letters Coming
- 2017 FUTA Credit Reductions
- Form 940 FUTA Return for 2017 Released
- 2018 SSA Wage Base Decreased
- OSHA Electronic Reporting Deadline Set
- 2018 State UI Wage Base Updates
- 2018 State Standard Deduction Increases
- New York On-Call Scheduling
- Nevada Cancels 4th Quarter UI Bond Assessment
- Ohio Now Requires Electronic UI Filing
Overtime Rule Appeal and Potential Automatic Updates
Labor Department Plans to File Overtime Appeal
The Labor Department has confirmed it plans to appeal a federal district court’s recent decision to overturn its proposed changes to the overtime rule. The DOL also asked for their appeal to be put on hold while it prepares a new rule. Part of its process for preparing new proposed changes to the overtime may include adjusting the salary threshold for which workers are eligible for overtime.
Automatic Update of Overtime Rule Being Considered
Labor Secretary Alexander Acosta announced that he is considering automatically updating overtime pay requirements based on inflation. Acosta also mentioned that a varying salary threshold would be considered to account for regional costs of living.
Representatives of the business community voiced their concerns with this approach as it would alienate the regulated community from ever participating in public debate again regarding salary levels.
Congress Reviews Tax Cuts and Jobs Act
On November 29, the tax reform bills were approved by the House. Differences between the House and Senate bills still remain, mainly regarding the federal individual income tax rates and the number of tax brackets.
For more information on the Tax Cuts and Jobs Act, check out our blog post.
ACA Employer Mandate Penalty Letters Coming
For more information, please visit the IRS website.
2017 FUTA Credit Reductions
- California - 2.1 percent
- U.S. Virgin Islands - 2.1 percent
The FUTA tax credit reduction is assessed at the end of each year for states who have an unpaid loan balance for unemployment benefits. This reduction decreases the amount of FUTA credit an employer can claim per employee when filing taxes. For more information, visit our FUTA Credit Reductions page.
Form 940 FUTA Return for 2017 Released
2018 SSA Wage Base Decreased
Based on the new amount, the maximum 2018 OASDI portion of the Federal Insurance Contributions Act (FICA) tax payable by each employee is $7,960.80, or 6.2 percent of the wage base. Employers match the employee amount with an equal contribution. There were no changes to cost-of-living adjustments.
OSHA Electronic Reporting Deadline Set
- Establishments with 250+ employees that are currently required to track and report OSHA injury and illness records.
- Establishments with 20 to 249 employees in certain high-risk industries.
The new reporting requirements will be phased in over the next two years:
- Establishments with 250+ employees that are currently required to track and report OSHA injury and illness records will submit 2017 forms (300A, 300, and 301) by July 1, 2018. Beginning in 2019 and thereafter, the forms must be submitted by March 2.
- Establishments with 20-249 employees in certain high-risk industries will submit Form 300A for the 2017 year by July 1, 2018. Beginning in 2019 and thereafter, Form 300A will be submitted by March 2.
2018 State UI Wage Base Updates
The Clock is Ticking...It's Time for Year-End
- Colorado: $12,600
- Idaho: $38,200
- Iowa: $29,900
- Montana: $32,000
- Nevada: $30,500
- New Jersey: $33,700
- New York: $11,100
- North Carolina: $23,500
- Ohio: $9,500
- Oregon: $39,300
- Pennsylvania: $10,000
- Utah: $34,300
- Vermont: $17,600
- Washington: $47,300
- Arkansas: $10,000
- Delaware: $16,500
- Missouri: $12,500
- New Mexico: $24,200
- Oklahoma: $17,600
- Wyoming: $24,700
For more information and updates, visit our SUTA Wage Bases page.
2018 State Standard Deduction Increases
- Missouri: $6,500 from $6,350
- Oregon: $2,215 from $2,175
New York On-Call Scheduling
Nevada Cancels 4th Quarter UI Bond Assessment
NOTE: APS will be issuing refunds for any clients we have drafted funds from so far this quarter.
Ohio Now Requires Electronic UI Filing
How APS Can Help
APS provides cloud-based solutions for Core HR and Payroll processes to provide organizations with the technology the need to be more productive and efficient. Our self-service technology for employees and managers makes it easier for HR managers to delegate responsibility while maintaining accountability. By maintaining a vision of unified systems that make human capital management nearly effortless, we support our clients in their growth and success.
To learn more, please visit our website at www.apspayroll.com or call 855-945-7921.
[pardot-form height=”250″ id=”455″ title=”Subscribe to Blog”]