The Payroll Report: Jan. 15 to Jan. 19


PayClocker

Here is a roundup of payroll issues recently covered:

State

The Maryland legislature enacted a measure to provide up to five paid sick days in a year, overriding Gov. Larry Hogan’s (R) veto.

Under the measure (H.B. 1 (2017RS)), employers with at least 15 workers must provide those who work at least 12 hours a week with one hour of sick leave for every 30 hours worked, up to a maximum of five days a year. Employers with up to 14 employees must provide unpaid leave to those who work at least 12 hours a week.

The bill, as passed by the 2018 General Assembly, is to take effect Feb. 11, or 30 days from the day both houses of the legislature overrode the veto, inclusive of weekends and holidays, according to the General Assembly’s Department of Legislative Services.

Several options for a New York state payroll tax on employers in response to the federal tax code overhaul (Pub. L. 115-97) were presented Jan. 17 in a state report to Gov. Andrew Cuomo (D).

There are several ways such a payroll tax could be designed to meet the goal of offsetting the decreased deductibility of state income taxes, the Department of Taxation and Finance said in the report. The payroll tax could be calculated based on the withholding system or could replace the state income tax. The tax could also be a flat rate based on the income tax rates or a surcharge on supplemental wages, which then would no longer be subject to state income tax, the department said.

A bill to adjust some elements of the Nebraska tax code was jointly proposed by Sen. Jim Smith (R) and the state revenue department Jan. 18. The proposed measure would retain the state’s personal exemption, increase the standard deduction, and continue to adjust the exemption, deduction, and income tax brackets for inflation.

Massachusetts released its unemployment surtax rates for experienced and new employers. Tennessee released its unemployment tax rates for the first half of 2018.

By Jamie Rathjen

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