Here is a roundup of payroll issues covered in the past week:
A sweeping Kentucky revenue bill (H.B. 366) retroactively eliminated the income tax brackets in favor of a flat rate while also providing for a threshold to decrease unemployment insurance rates.
The bill, enacted April 13 after the state legislature overrode a veto by Gov. Matt Bevin (R), sets the 2018 individual income tax rate at a flat 5 percent, eliminating the previous brackets of 2, 3, 4, 5, 5.8, and 6 percent.
The bill also provides that effective July 1, 2018, all unemployment insurance tax rates may be decreased by 0.075 percent if the balance of the state's trust fund exceeds the balance on Dec. 31, 2017. Kentucky's annual fund-reading date is Sept. 30.
A Nebraska bill (L.B. 1090) to update the state’s standard deduction and personal exemption in response to the new federal tax law (Pub. L. 115-97) was signed April 17 by Gov. Pete Ricketts (R), his office said.
The measure increases the standard deduction for tax year 2018 to either $6,750 or the federal value, whichever is lower, from $3,000 or the federal value. The state’s personal exemption credit, which was eliminated by the 2017 federal tax law, was restored to a value of $134 for 2018.
The New York budget for fiscal 2019 that includes an optional payroll tax was signed April 17 by Gov. Andrew Cuomo (D), his office said.
Employers are to elect to participate in the optional payroll tax by Dec. 1, 2018, and the tax is to be introduced at a rate of 1.5 percent on employee compensation of at least $40,000 a year in 2019.
Utah updated its withholding tables April 18, with the changes to take effect for pay periods starting May 1, 2018, and later. The new tables implement a bill (H.B. 293) signed March 26 by Gov. Gary Herbert (R) to decrease the state’s flat income tax rate to 4.95 percent from 5 percent, effective Jan. 1, 2018.
A Wisconsin bill (A.B. 748) signed April 16 by Gov. Scott Walker (R) prevents local regulation of employee hours and overtime, scheduling, employment benefits, and wage claims and collections.
Any existing local ordinances conflicting with the measure may not be enforced as of the bill’s April 18 effective date, but ordinances that limit the hours that a company may operate and that regulate overtime hours and overtime for traveling sales crew workers are not affected, the measure said.
A Redwood City, Calif., ordinance (No. 2443) to implement an hourly minimum wage in two increments was passed April 9 by the city council and signed April 10 by Mayor Ian Bain. The measure is to take effect May 10.
The local minimum wage on Jan. 1, 2019, is to become $13.50 an hour. The minimum wage is to rise to $15 on Jan. 1, 2020, plus an inflation-related adjustment to be determined in August.
By Jamie Rathjen
Take a free trial of Bloomberg BNA’s Payroll Decision Support Network , your one-stop resource for reliable, up-to-date guidance and analysis in every area of payroll administration and compliance.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)