Payroll Library - Payroll Library Summary of Changes (6 month archive)



	Home > What's New > Payroll Library Summary of Changes (archive) Payroll Library Summary of Changes (6 month archive) May 2007 115 - WAGES AND BENEFITS Aircraft and Other Travel-Related Expenses— The Netherlands Antilles has been added to the list of geographical areas included in the North American area for purposes of deducting convention expenses. 117 - HOLIDAYS AND LEAVE Virginia Military Leave— Employees will have 14 days, eff. July 1, 2007, to apply for re-employment following military service leave. 141 - WAGE-HOUR LAWS & RULES Local Minimum Wage Rates Comparison Chart— In New Mexico, localities cannot adopt or continue in effect any law or ordinance that mandates a minimum wage rate higher than the state minimum wage, effective Jan. 1, 2008, until Jan. 1, 2010. Kentucky Minimum Wage— The Kentucky minimum wage will increase to $5.85 an hour on July 1, 2007, to $6.55 an hour on July 1, 2008, and to $7.25 an hour on July 1, 2009. Missouri Minimum Wage— Employers must pay tipped employees a minimum base rate of $3.25, one half of the current minimum wage of $6.50, according to Gov. Matt Blunt (R). The governor, in a March 14 statement overruled the state Department of Labor and Industrial Relations's interpretation of the law, which would have allowed employers to pay tipped employees as little as $2.13 an hour with the difference made up in tips. Nevada Minimum Wage— The Nevada Labor Commissioner's Office has adopted temporary minimum wage regulations that go into effect April 10, 2007. The regulations will take the place of emergency regulations that were set to expire in April. New Mexico Minimum Wage— The New Mexico minimum wage will increase to $6.50 an hour on Jan. 1, 2008, and to $7.50 an hour on July 1, 2009. New Mexico Meal and Rest Breaks— Employers must provide flexible break times and a space for nursing mothers to express breast milk, effective June 15, 2007. Virginia Minimum Wage— Effective July 1, 2007, employees over the age of 64 must be paid the state minimum wage. 153 — NEW HIRES: REQUIREMENTS, TAX CREDITS Mississippi New-Hire Reporting— Effective July 1, 2007, all employers that pay wages, salary, or commission, and conduct business in Mississippi, are subject to the new-hire provisions. 161 - WAGE PAYMENT & DEDUCTION Iowa Wage Payment Requirements— Effective July 1, 2007, if employers fail to send wages for direct deposit on or by the regular payday and employees incur overdraft charges, those charges can be the basis for a wage claim and employers are liable for the charges plus damages. 171 - UNEMPLOYMENT INSURANCE Alaska— Employers that succeed or acquire all or part of another employer's trade or business must notify the Department of Labor and Workforce Development within 15 days. Employers submitting quarterly reports with wage schedules listing 100 or more employees, or a combination of wage schedules listing 100 or more employees, are required to file via the Internet, as provided under regulation changes effective March 25, 2007. Arkansas— Effective July 2007, claimants who are discharged for misconduct in connection with drinking on the job, reporting for work while under the influence of intoxicants, or testing positive for an illegal drug, provided their employer has a written drug policy in effect, are disqualified from receiving benefits. Effective July 1, 2007, the department will change from the currently-used magnetic media tape and diskette formats to SSA's MMREF format. These changes will be effective for filing reports for the second quarter of 2007. Idaho—The penalty has been revised for employers that willfully fail to timely file their quarterly unemployment insurance tax reports; the penalty is reduced for the first and second offenses. Kansas—Employer tax rates for 2007 now range from zero percent to 7.4 percent; new employers pay at the rate of 4 percent, except new construction employers pay 6 percent. Montana—Claimants will not be disqualified from receiving unemployment insurance benefits if they leave work because of a mandatory military transfer of their spouse. The weekly benefit amount ranges from $109 to $380, effective July 2007, and from $115 to $390, effective Oct. 1, 2007. Virginia— Employers with 100 or more employees are required to file quarterly reports electronically, beginning Jan. 1, 2009. Currently, employers with 250 or more employees are required to file quarterly reports on a magnetic medium. Employers that are required to file electronically, but fail to do so without good cause will be assessed a $75 penalty. West Virginia—The name of the agency that administers the state's unemployment insurance program has changed to Workforce West Virginia (formerly, the Bureau of Employment Programs), under S.B. 454. 181 — STATE & LOCAL WITHHOLDING States Following Federal Income Tax Withholding Laws Comparison Chart— Kentucky follows the IRC effective Dec. 31, 2006. California Income Tax Withholding—Interest rates on unpaid taxes will remain unchanged in the second half of 2007, at 8 percent. Georgia Income Tax Withholding—Employers filing more than 250 W-2 forms in 2007 (for the 2006 tax year) must use magnetic media; employers filing fewer W-2 forms may use either magnetic media or paper. Michigan Local Taxes— The interest rate on unpaid taxes in Detroit and other local jurisdictions is 9.1 percent, eff. Jan. 1, 2007, through June 30, 2007. Several jurisdictions are updated. Ohio Local Taxes— Forest Park will increase its tax rate to 1.5 percent, and increase the credit against city taxes to 100 percent, eff. July 1, 2007. Ohio School District Taxes—Colonel Crawford Local School District will impose a 1.25 percent tax, eff. Jan. 1, 2008; North Fork Local School District will impose a 1 percent tax, eff. Jan. 1, 2008. Virginia Income Tax Withholding—Eff. Jan. 1, 2008, monthly deposits will be due by the 25th day of the following month, including deposits for the final month of a quarter. April 2007 111 - FEDERAL TAX COMPUTATIONS Taxes on Tips — Information on IRS's Attributed Tip Income Program (ATIP) has been added. 121 - FEDERAL TAX RETURNS AND DEPOSITS Statements to Employees: Form W-2 Requirements— Employers working on Forms W-2 online must submit them within 90 days or they will be deleted. IRS Interest Rates for Tax Underpayments and Overpayments— The interest rates for tax under- and overpayments remain unchanged for the second quarter of 2007. 125 - INTERNATIONAL PAYROLL Expatriate Employees— Internal Revenue Service Notice 2007-25 revises the limitations on housing expenses under IRC Sec. 911 for certain cities. 126 - CANADIAN PAYROLL Payroll in Canada — The Canadian Payroll Association's ”Primer on Payroll in Canada" has been updated for 2007. 117 - HOLIDAYS AND LEAVE New Jersey Family and Medical Leave - Employers can designate the 24-month family and medical leave period and must notify employees of the designation. 141 - WAGE-HOUR LAWS & RULES FLSA Exemptions — Employers may under state leave laws that allow employees to take leave to participate in their children's school activities or to accompany their children or elderly relatives to medical or dental appointments, according to Department of Labor opinion letter FLSA2007-6. Arizona Minimum Wage — Employers must pay the state minimum wage to developmentally disabled workers, according to an attorney general opinion. Illinois Minimum Wage — Employers must pay the adult minimum wage to day or temporary laborers and to employees age 18 or older whose employment is occasional or irregular and requires not more than 90 days to complete, effective July 1, 2007. Local Minimum Wage Rates— The local minimum wage in Tucson, Arizona increased to $10.73 per hour or $9.54 per hour if an employer provides at least 50 percent of the cost of health insurance. Both rates are effective until Dec. 31, 2007. Local Minimum Wage Rates— Employers can delay payment of the sick leave required by San Francisco, California's living wage ordinance during a transition period from Feb. 5, 2007, to June 5, 2007. During the transition period, employers still must provide the paid sick leave but do not have to pay for the sick leave until June 6, 2007. Covered employers in Petaluma, California must pay employees $13.20 per hour or $11.70 per hour if health benefits of at least $1.50 per hour are provided, under Ordinance No. 2256. Employees also must receive at least 22 days off per year for sick, vacation, or personal leave, and at least 12 of those days must be paid. The local minimum wage in Buffalo, New York will increase to $9.59 if health benefits are provided and $10.77 if health benefits are not provided, effective March 24, 2007. Beginning in 2008, the rate will rise every year based on inflation for the year preceding the prior year. On Jan. 1, 2008, the rate will rise, based on 2006 inflation, to $9.90 with health benefits and $11.11 without health benefits. 169 — WORKERS' COMPENSATION & STATE DISABILITY Washington Workers' Compensation Tax— A six-month “rate holiday” is in effect for the Medical Aid Fund premium, beginning July 1; the rate for both employers and employees will be zero percent. 181 — STATE & LOCAL WITHHOLDING States Following Federal Income Tax Withholding Laws Comparison Chart — Arkansas follows the IRC effective Jan. 1, 2007; Idaho follows the IRC effective Jan. 1, 2007; Nebraska follows the IRC effective Feb. 14, 2007; Va. follows the IRC effective Dec. 31, 2006. W.Va. follows the IRC effective Jan. 1, 2007. Annual Reconciliation Reports Paperless Filing State Comparison Chart — Del. offers on-line filing of W-2s); Mass. extends the filing date for paper W-2s to May 31 and reduces the threshold for paperless filing to 50 or more forms, effective for 2007 tax year. Alabama — Interest rates on unpaid taxes are unchanged for the second quarter of 2007, at 8 percent for underpayments and 10 percent for large corporate underpayments. Arizona — Interest rates on unpaid taxes are unchanged for the second quarter of 2007, at 8 percent for underpayments and 10 percent for large corporate underpayments. Arkansas — Requirements for withholding from pensions and annuities are added. Delaware — Employers may submit W-2 information on-line for 2006; in 2007, the state will no longer accept diskettes, CDs, or tapes. Kentucky — Pensions are tax-exempt up to a cap of $41,110, effective Jan. 1, 2007. Massachusetts — Employers that don't meet the threshold to file W-2 forms on magnetic media must file paper copies for 2007; the filing deadline has been extended to May 31, 2007. For tax year 2007, the threshold to file W-2 forms magnetically will be 50 forms. Interest rates on unpaid taxes are unchanged for the second quarter of 2007, at 7 percent for overpayments and 9 percent for underpayments. Michigan — Interest is imposed on unpaid taxes at a rate of 9.1 percent, effective Jan. 1, 2007, through June 30, 2007. South Carolina — Interest rates on unpaid taxes are unchanged for the second quarter of 2007, at 8 percent for underpayments and 10 percent for large corporate underpayments. Virginia — Interest rates on unpaid taxes are unchanged for the second quarter of 2007, at 8 percent for underpayments and 10 percent for large corporate underpayments. March 2007 101 - FEDERAL TAX COVERAGE RULES Publication 15-B — The Internal Revenue Service has released Publication 15-B, Employer's Tax Guide to Fringe Benefits, for 2007. 115 - WAGES AND BENEFITS Aircraft and Other Travel-Related Expenses— The Standard Industry Fare Level (SIFL) rates for the first half of 2007 have been released. 141 - WAGE-HOUR LAWS & RULES Arizona Minimum Wage — Emergency minimum wage rules filed Jan. 25 require employers to provide written notice to employees in order to exercise the tip credit, and to follow certain recordkeeping procedures. Employers also may credit toward the minimum wage the reasonable cost of furnishing board, lodging, or other facilities to employees. The rules are effective until July 25, though this period may be extended for an additional six months. Permanent rules will be adopted to replace the emergency rules. Colorado Minimum Wage — State minimum wage requirements remain unchanged under an emergency minimum wage order that supersedes a previous minimum wage order. The emergency order incorporated changes that already had been made by a constitutional amendment. Iowa Minimum Wage — The minimum wage increases to $6.20 per hour on April 1, 2007, and then to $7.25 per hour on Jan. 1, 2008. The training wage, which can be paid to workers during their first 90 days on a job, increases to $5.30 per hour on April 1, and to $6.35 per hour on Jan. 1, 2008. Ohio Minimum Wage — A measure (H.B. 690) governing implementation of the state's new minimum wage law goes into effect April 4, 2007. Puerto Rico Meal and Rest Breaks — Employers must provide two 30-minute or three 20-minute break periods every workday to mothers working full-time so they can nurse or express breast milk for a 12-month period after returning to work from maternity leave. Certain small employers only must provide one half-hour or two 15-minute break periods. 171 - UNEMPLOYMENT INSURANCE Connecticut— Employer tax rates for 2007 range from 1.2 percent to 6.1 percent, including the 0.7 percent fund solvency tax. Kentucky— Employer tax rates for 2007 remain under Schedule C, with rates ranging from 0.5 percent to 9.5 percent; new employers pay 2.7 percent, except new construction employers pay 9.5 percent. Mississippi— Employer tax rates for 2007 range from 0.7 percent to 5.4 percent, including the 0.3 percent workforce training enhancement tax; new employers continue to pay at the rate of 2.7 percent. New York— Employer tax rates for 2007 range from 1.1 percent to 9.5 percent, including the applicable subsidiary tax and re-employment tax. New employers pay at the rate of 4.1 percent, including a 0.625 percent subsidiary tax rate. Puerto Rico— Employer tax rates for 2007 remain under Tax Table C, with rates ranging from 1.4 percent to 5.4 percent; new employers pay at the rate of 2.9 percent. In addition, a special assessment of 1 percent is applicable for all employers, except employers whose rate is higher than 4.4 percent pay the difference between their assigned rate and 5.4 percent. South Dakota— Employer tax rates for 2007 range from zero percent to 8.5 percent, including the applicable investment fee. New employers pay 1.75 percent (6.55 percent for those in construction), including the 0.55 percent investment fee. 181 — STATE & LOCAL WITHHOLDING Alabama Local Taxes — Bear Creek, Leeds, and Shorter each impose a tax of 1 percent. Ohio Local Taxes — Maple Heights tax rate increases from 2 percent to 2.5 percent, effective March 1, 2007. Oregon Transit District Taxes — Tax rates for 2007 are 0.6518 percent for the Tri-County Metropolitan Transit District and 0.62 percent for the Lane County Transit District. Utah — The interest rate on unpaid taxes is 7 percent for 2007. Vermont — The interest rate on unpaid taxes is 8.4 percent for 2007. West Virginia — The interest rate on unpaid taxes is 9.5 percent for the period beginning Jan. 1, 2007, and ending June 30, 2007. February 2007 101 - FEDERAL TAX COVERAGE RULES Publication 15-A: Employer's Supplemental Tax Guide— IRS has released Publication 15-A, Employer's Supplemental Tax Guide, for 2007. 111 - FEDERAL TAX COMPUTATIONS Formula Tables: Percentage Method— The 2007 formula tables for percentage method withholding have been released. Wage Bracket Percentage Methods— The 2007 wage bracket percentage method tables have been released. Combined FIT/FICA Withholding— The 2007 combined FIT/FICA withholding tables have been released. 115 - WAGES & BENEFITS Auto Expenses and Benefits— For 2007, a control employee of a nongovernment employer is any employee who is an officer and receives $90,000 or more in compensation. 141 - WAGE-HOUR LAWS & RULES Nevada Minimum Wage — The state has issued emergency regulations to clarify the recent constitutional changes to the minimum wage. Local Minimum Wage Rates Comparison Chart — Covered employers in Bernalillo County, New Mexico, must pay a minimum wage of $6.75 per hour, effective Jan. 13, 2007; $7.15 per hour, effective Jan. 1, 2008; and $7.50 per hour, effective Jan. 1, 2009. Employers may pay $5.75 per hour if health care and/or child care benefits are provided; $6.15 per hour, effective Jan. 1, 2008; $6.50 per hour, effective Jan. 1, 2009. 171 - UNEMPLOYMENT INSURANCE Arizona — Employer tax rates for 2007 range from 0.02 percent to 2.18 percent for positive-balance employers; the rates for negative-balance employers range from 2.85 percent to 5.4 percent. New employers pay 2 percent in 2007. Arkansas— Employer tax rates for 2007 range from 0.8 percent to 10.7 percent, including a 0.7 percent stabilization tax; new employers pay 3.6 percent, including the stabilization tax. Delaware— Employer tax rates for 2007 range from 0.03 percent to 8.2 percent; new employers pay 2.3 percent, except new construction employers pay 4.4 percent. District of Columbia— Employer tax rates for 2007 range from 1.3 percent to 6.6 percent, not including the 0.2 percent administrative assessment; new employers pay 2.7 percent. Georgia— Employer tax rates for 2007 range from 0.03 percent to 5.4 percent, including the 0.08 percent administrative assessment; new employers pay at the rate of 2.7 percent. Illinois— Weekly benefit amounts for 2007 range from $51 to $367 for a claimant with no dependents; $54 to $436 for a claimant with a nonworking spouse; and $57 to $498 for a claimant with dependent children. Iowa— Employers now have the option of filing quarterly unemployment insurance reports and remitting contributions online via the Workforce Development's new eFile & Pay system. Louisiana — Employer tax rates for 2007 range from 0.1 percent to 6.2 percent; new employer rates range from 1.08 percent to 2.82 percent. Massachusetts— Employer tax rates for 2007 are determined under Schedule D, with rates ranging from 1.12 percent to 10.96 percent; new employers pay 2.53 percent, except new construction employers pay 7.17 percent. Ohio— The taxable wage base remains $9,000 (previously reported as $9,500). Oklahoma— Employer tax rates for 2007 are based on conditional factor A, with rates ranging from 0.2 percent to 5.8 percent. New employers pay at the rate of 1.8 percent. Pennsylvania— Tax rates for 2007 range from 2.0080 percent to 10.2624 percent, including the 7.2 percent surcharge and 0.4 percent additional contribution tax. Delinquent employers pay their assigned rate, plus an additional 3 percent. New nonconstruction employers pay 3.7520 percent; new construction employers pay 10.3984 percent. Tennessee— Tax rates for experience-rated employers for the second half of fiscal year 2007 (Jan. 1 through June 30, 2007) are determined under Table 4, with rates ranging from 0.3 percent to 10 percent. 181 — STATE & LOCAL WITHHOLDING State Supplemental Wage Comparison Chart — Oklahoma requires withholding on supplemental wages at a rate of 5.65 percent. Connecticut — Income tax withholding tables for 2007 are now available. District of Columbia — The income tax withholding tables for 2007 are now available. Illinois — Under a pilot program, employers can use the Electronic Federal Tax Payment System (EFTPS) to make state tax payments. Iowa — The interest rate on unpaid taxes is 10 percent per year (0.8 percent per month), effective Jan. 1, 2007. Kentucky Local Income Taxes — A number of jurisdictions have made changes in their rates and withholding limits. Employers should check the jurisdictions that affect them. Louisiana — The interest rate on unpaid taxes is 14.5 percent, effective Jan. 1, 2007. New Jersey — Employers must withhold from independent construction contractors at a rate of 7 percent per year, effective Jan. 1, 2007; the interest rate on unpaid taxes is 11.25 percent, effective Jan. 1, 2007. North Dakota — Employers may file their returns on-line; annual reconciliation filing requirements are revised. Ohio Local Income Taxes — A number of jurisdictions have made changes in their rates, collection agencies, and credits. Employers should check the jurisdictions that affect them. Oklahoma — Employers should withhold from supplemental wages at a rate of 5.65 percent for 2007. Scranton, Penn. — Employers must withhold 2.4 percent city taxes, and 1 percent school district taxes, for a total of 3.4 percent, for 2007. West Virginia — The income tax withholding tables for 2007 are now available. January 2007 101 - FEDERAL TAX COVERAGE RULES Circular E: Employer's Tax Guide— IRS has released Publication 15, Employer's Tax Guide (Circular E), for 2007. 111 - FEDERAL TAX COMPUTATIONS Percentage Method Withholding Tables — The 2007 percentage method withholding tables are now available. Wage Bracket Method of Withholding — The 2007 tables for withholding federal income taxes under the wage bracket method are now available. Earned Income Credit — Individuals with no children are eligible for the earned income credit if they earn less than $12,590 in 2007. Advance EIC Payment Tables — The IRS tables for computing employer advance payments of the earned income credit in 2007 are now available. 121 - FEDERAL TAX RETURNS & DEPOSITS IRS Interest Rates for Tax Underpayments and Overpayments— The interest rates for tax under- and overpayments remain unchanged for the first quarter of 2007. 141 - WAGE-HOUR LAWS & RULES Illinois Minimum Wage — The minimum wage increases to $7.50 per hour, effective July 1, 2007; to $7.75 per hour, effective July 1, 2008; to $8.00 per hour, effective July 1, 2009; and to $8.25 per hour, effective July 1, 2010. 169 - WORKERS' COMPENSATION & STATE DISABILITY Hawaii— The maximum weekly wage base for 2007 is $820.26, and the maximum weekly employee deduction is $4.10. Rhode Island— The employee tax rate for 2007 is 1.3 percent; the taxable wage base is $52,100. 171 - UNEMPLOYMENT INSURANCE UI Wage Base Limits:— The taxable wage base for 2007 remains unchanged from the 2006 amount in the following states: Arizona; Colorado; Indiana; Maine; Maryland; Michigan; South Carolina; Texas; Virginia; West Virginia; and Wisconsin. Alabama — Employer tax rates for 2007 remain under Schedule C, with rates ranging from 0.5 percent to 6.1 percent; new employers continue to pay 2.7 percent. Alaska— Employer tax rates for 2007 range from 1.5 percent to 5.9 percent, including the 0.5 percent employee tax; new employer tax rates range from 2.44 percent to 3.54 percent. Colorado —Employer tax rates for 2007 range from zero percent to 9.82 percent, including the solvency tax and the 0.22 percent surcharge. Florida— Employer tax rates for 2007 range from 0.0012 percent to 5.4 percent; new employers pay at the rate of 2.7 percent. The taxable wage base remains $7,000. Hawaii— The taxable wage base increases to $35,300 for 2007; employer tax rates are determined under Schedule B, with rates ranging from zero percent to 5.4 percent. Idaho— The taxable wage base for 2007 increases to $30,200. Employer tax rates range from 0.372 percent to 5.4 percent; new employers pay at the rate of 1.302 percent. Illinois —Employer tax rates for 2007 range from 1 percent to 8.2 percent, including the 0.8 percent fund building tax; the standard rate for new employers is 3.9 percent. Indiana —Employer tax rates for 2007 remain under Schedule A, with rates ranging from 1.1 percent to 5.6 percent; new employers continue to pay 2.7 percent. Kansas — Employer tax rates for 2007 range from 0.06 percent to 7.4 percent; new employers pay industry rates, which range from 4.62 percent to 5.91 percent. The taxable wage base remains $8,000. Maine — Employer tax rates range from 0.54 percent to 5.4 percent. new employers pay at the rate of 1.8 percent. Maryland— Employer tax rates range from 0.3 percent to 7.5 percent. new employers pay 2.4 percent, except new employers in the construction industry pay 3.6 percent. Michigan — Employer tax rates range from 0.06 percent to 10.3 percent; new employers pay 2.7 percent, except new construction employers pay 7.4 percent. Montana — Employer tax rates for 2007 range from 0.13 percent to 6.5 percent, including the 0.13 percent administrative fund tax; new employer rates range from 1.13 percent to 3.13 percent. Nebraska — Employer tax rates for 2007 range from 0.24 percent to 5.4 percent; new nonconstruction employers pay 1.6 percent for 2007, while new construction employers pay 5.4 percent. Nevada — Employer tax rates for 2007 continue to range from 0.25 percent to 5.4 percent. New Mexico— Employer tax rates remain under Reserve Schedule 0 for 2007. Rates range from 0.03 percent to 2.4 percent for employers with positive account balances. Rates for negative-balanced accounts continue to range from 3.3 percent to 5.4 percent. North Dakota— Employer tax rates for 2007 range from 0.34 percent to 8.09 percent. New nonconstruction employers pay 1.6 percent, and those in construction pay 8.09 percent. Ohio — Employer tax rates for 2007 range from 0.4 percent to 9 percent. New employers pay 2.7 percent, except new construction employers pay 5 percent. Rhode Island — The taxable wage base decreases to $14,000 in 2007. Employer tax rates for 2007 range from 1.69 percent to 9.79 percent; new employers pay at the rate of 2.41 percent. South Carolina — Employer tax rates continue to range from 1.24 percent to 6.1 percent. Texas — Employer tax rates for 2007 range from 0.29 percent to 7.7 percent; new employers pay 2.7 percent. Utah — The taxable wage base increases to $25,400 in 2007. Virginia — Employer tax rates range from 0.17 percent to 6.27 percent; new employers pay 2.57 percent, except foreign contractors pay 6.27 percent. West Virginia — Employer tax rates continue to range from 1.5 percent to 8.5 percent; new nonconstruction employers pay 2.7 percent, while new construction employers pay 8.5 percent. Wisconsin — Employer tax rates continue to range from 0.05 percent to 9.8 percent, including both the basic and solvency tax. Wyoming — Employer tax rates for 2007 range from 0.47 percent to 8.97 percent; new employers pay industry rates, which range from 1.47 percent to 2.62 percent. 181 — STATE & LOCAL WITHHOLDING Annual Reconciliation Paperless Filing Requirements State Comparison Chart — A new chart is added, detailing the due dates for annual reports, which states require employers to report WA information, and paperless filing requirements. Alabama — Interest rates on unpaid taxes are unchanged for the first quarter of 2007, at 8 percent for underpayments and 10 percent for large corporate underpayments. Alaska — The City of Fairbanks imposes an Occupational Privilege Tax on all individuals working within the city, effective Dec. 24, 2006. Arizona — Interest rates on unpaid taxes are unchanged for the first quarter of 2007, at 8 percent for underpayments and 10 percent for large corporate underpayments. Colorado — Income tax withholding tables for 2007 are now available. Maryland — The income tax withholding tables for 2007, covering local withholding rates for Baltimore City and the various counties, are now available. Massachusetts — The income tax withholding tables for 2007 are now available. Missouri — The income tax withholding tables for 2007 are now available. New York — Interest rates on unpaid taxes are unchanged for the first quarter of 2007, at 7 percent for underpayments and 10 percent for overpayments. North Carolina — Income tax withholding tables for 2007 are now available. Ohio School District Income Taxes — Eleven districts have imposed new taxes for 2007, and rates have changed in another 13 districts. Oklahoma — The income tax withholding tables for 2007 are now available. Oregon — The income tax withholding tables for 2007 are now available. Rhode Island — The income tax withholding tables for 2007 are now available. South Carolina — Interest rates on unpaid taxes are unchanged for the first quarter of 2007, at 8 percent for underpayments and 10 percent for large corporate underpayments. Vermont — The income tax withholding tables for 2007 are now available. Virginia — Interest rates on unpaid taxes are unchanged for the first quarter of 2007, at 10 percent for underpayments and 12 percent for large corporate underpayments.ers pay industry rates, which range from 4.62 percent to 5.91 percent. The taxable wage base remains $8,000. December 2006 101 — FEDERAL TAX COVERAGE RULES Federal Insurance Contributions Act: Employer Coverage Rules — The Social Security wage base increases to $97,500 for 2007. 125 — INTERNATIONAL PAYROLL Expatriate Employees — The maximum foreign earned income exclusion limit rises to $85,700 in 2007 for qualified citizens working abroad. Immigration Law and Alien Employment — USCIS and ETA update their Web sites. 153 — NEW-HIRES: REQUIREMENTS, TAX CREDITS New-Hire Employment Verification: Form I-9— USCIS updates its Web site. 141— WAGE-HOUR LAWS & RULES Arizona Minimum Wage — Employers must pay $6.75 an hour to covered employees, effective Jan. 1, 2007. Colorado Minimum Wage — Employers must pay $6.85 an hour to covered employees, effective Jan. 1, 2007. Missouri Minimum Wage — Employers must pay $6.50 an hour to covered employees, effective Jan. 1, 2007. Montana Minimum Wage — Employers must pay $6.15 an hour to covered employees, effective Jan. 1, 2007. Nevada Minimum Wage — Employers that do not provide health benefits must pay employees $6.15 an hour, effective Nov. 28, 2006. Ohio Minimum Wage — Employers must pay $6.85 an hour to covered employees; however, employers with annual gross receipts of $250,000 or less can still pay employees $5.15 an hour, effective Jan. 1, 2007. Vermont Minimum Wage — Employers must pay $7.53 an hour to covered employees, effective Jan. 1, 2007. Local Minimum Wage Rates Comparison Chart — The minimum wage for San Francisco, California increases to $9.14 per hour, effective Jan. 1, 2007. New York — Employers must follow specific guidelines for disposing records that contain personal identifying information, effective Dec. 4, 2006. The summaries on minimum wage and overtime have been updated with this information. Tennessee Meal and Rest Breaks — Mothers have the right to breast-feed their children who are 12 months of age or younger in any location, public or private, where they and their children are otherwise authorized to be present. 161 — WAGE PAYMENT & DEDUCTION California Wage Payment Requirements — Effective Jan. 1, 2007, employers can report overtime hours on the pay statement for the next regular pay period as itemized corrections. California Child Support — Effective Jan. 1, 2007, employers that knowingly help parents avoid paying child support obligations are liable for three times the value of the assistance provided (such as the fair market value of the wages paid to parents but not reported). New York — Employers must follow specific guidelines for disposing records that contain personal identifying information, effective Dec. 4, 2006. The summaries on wage payment, deductions from wages, and unclaimed wages have been updated with this information. Puerto Rico Wage Payment Requirements — The mandatory Christmas bonus is updated to include amounts for 2006 to 2008. 169 — WORKERS' COMPENSATION & STATE DISABILITY California — For 2007, the employee tax rate for coverage under the state plan is 0.6 percent of taxable wages, up to the annual wage base of $83,389. New York — Employers must follow specific guidelines for disposing records that contain personal identifying information, effective Dec. 4, 2006. 171 — UNEMPLOYMENT INSURANCE Alaska — The taxable wage base increases to $30,100 in 2007. California — Employer tax rates for 2007 remain under Schedule F+, with rates ranging from 1.5 percent to 6.2 percent. The taxable wage base for 2007 remains $7,000. Georgia — The taxable wage base for 2007 remains $8,500. Minnesota— Employer tax rates for 2007 range from 0.4 percent to 8.9 percent, not including the 0.1 percent workforce enhancement fee and the 0.14 percent additional assessment. New employers pay 1.73 percent, except new construction employers pay 8 percent, not including the applicable assessments. The taxable wage base remains $24,000. New Hampshire — For all quarters of 2007, a 1 percent fund balance reduction is in effect for all positive-rated and new employers. New Mexico — The taxable wage base increases to $18,600 in 2007. New York — Employers must follow specific guidelines for disposing records that contain personal identifying information. North Carolina — The taxable wage base increases to $17,800 in 2007. Employer tax rates remain under Schedule A, ranging from zero percent to 6.84 percent. New employers pay 1.2 percent. Oklahoma — For 2007, the taxable wage base decreases to $13,200. Oregon — The taxable wage base increases to $29,000 in 2007; employer tax rates range from 0.9 percent to 5.4 percent. Wyoming — The taxable wage base increases to $18,100 in 2007. 181 — STATE & LOCAL WITHHOLDING Alabama — Income tax withholding tables for 2007 are now available. Arizona — Employers that have paid the full amount due on time can file quarterly reconciliations on the 10th day of the month following the end of the quarter. California — Income tax withholding tables for 2007 are now available. Hawaii — Income tax withholding tables for 2007 are now available. Kentucky — The interest rate on unpaid taxes for 2007 is 8 percent. The income tax withholding computer formula for 2007 is now available. Maine — The interest rate on unpaid taxes will be 12 percent, effective. Jan. 1, 2007. Supplemental income tax withholding tables for 2007 are now available. Michigan — Income tax withholding tables for 2007 are now available. Minnesota — The interest rate on unpaid taxes is updated for 2007. The income tax withholding computer formula for 2007 is now available. Nebraska — The income tax withholding tables for 2007 are now available. New Mexico — The income tax withholding tables for 2007 are now available. New York — Employers must take steps to protect personal identifying information when disposing of records, effective, Dec. 4. North Dakota — Income tax withholding tables for 2007 are now available. Philadelphia — Income tax withholding rates for residents and nonresidents for 2007 have been reduced. Puerto Rico — The income tax withholding tables for 2007 are now available. Utah — Withholding tables for 2007 are now available. November 2006 115 — WAGES & BENEFITS High-Cost Localities: High-Low Substantiation Method for 2007 — Federal per diem rates are updated for high-cost localities. 125 — INTERNATIONAL PAYROLL Expatriate Employees — The Internal Revenue Service is permitting higher housing allowances for 150 cities covering 52 countries. 153 — NEW HIRES: REQUIREMENTS, TAX CREDITS New-Hire Employment Eligibility: Form I-9 — Employers can improve their hiring practices through ICE's Mutual Agreement between Government and Employers (IMAGE) program. 141 — WAGE-HOUR LAWS & RULES Florida Minimum Wage — The minimum wage increases to $6.67 per hour on Jan. 1, 2007. Michigan Minimum Wage — Employers can pay 85 percent of the general minimum hourly wage to employees who are less than 18 years of age, and can pay $4.25 per hour to new employees who are less than 20 years of age for the first 90 days of employment. Oregon Minimum Wage — The minimum wage increases to $7.80 per hour on Jan. 1, 2007. Washington Minimum Wage — The minimum wage increases to $7.93 per hour on Jan. 1, 2007. California Overtime — The minimum hourly wage that licensed physicians and surgeons must receive to be exempt from California's overtime requirements increases from $61.65 to $64.18, and the hourly rate for computer software professionals increases from $47.81 to $49.77, effective Jan. 1, 2007. Michigan Overtime — The state has revised the employees covered under the state's overtime law. 171 — UNEMPLOYMENT INSURANCE Hawaii — The state has developed a new software system for filing quarterly reports and making payments online. Missouri — Tax rates for 2007 range from zero percent to 8.4 percent, including a 30 percent surcharge; shared-work employers are subject to higher rates, up to 12.6 percent. Employers that have been assigned the maximum tax rates for two or more years pay an additional surcharge. New employers continue to pay 3.51 percent in 2007, except new construction employers pay 3.832 percent, and new mining employers pay 3.567 percent. New Hampshire — The fund balance rate reduction is 1 percent for the fourth quarter of 2006. Ohio — The taxable wage base for 2007 increases to $9,500. 181 — STATE & LOCAL WITHHOLDING Alabama — The interest rate on tax overpayments remains 8 percent for the fourth quarter; the rate for large corporate underpayments remains 10 percent. Arizona — The interest rate on tax overpayments remains 8 percent for the fourth quarter; the rate for large corporate underpayments remains 10 percent. Puerto Rico — The rates for calculating the mandatory Christmas bonus are increased to a maximum of 6 percent of wages up to $10,000 for certain employees in 2008. South Carolina — The interest rate on tax overpayments remains 8 percent for the fourth quarter; the rate for large corporate underpayments remains 10 percent. Virginia — The interest rate on tax overpayments remains 10 percent for the fourth quarter; the rate for large corporate underpayments remains 12 percent. Current Month
	Contact the Webmaster at webmaster@bna.com 1801 S. Bell Street, Arlington, VA 22202 - Phone: 1-800-372-1033 Copyright © The Bureau of National Affairs, Inc. All Rights Reserved.