Here is a roundup of payroll issues covered in the past week:
Employers face a significant burden related to the withholding calculations required by the draft 2019 Form W-4, two tax groups said in letters to the IRS.
The draft form is more complex and requires the employer to do more to calculate withholding amounts, the National Association of Enrolled Agents said in a July 6 letter. The requirements would particularly affect smaller businesses that would need to seek external help, the letter said.
The draft W-4 gives employers more responsibility for accurate withholding calculations, the American Institute of CPAs said in a July 12 letter. If an employee omits information from the form or does not use the IRS’s online calculator to determine their withholding, underpayment or overpayment of taxes could result, the institute said.
Employers need a revised Publication 15 (Circular E), Employer’s Tax Guide, to provide withholding guidance, the institute’s letter said. Without IRS guidance, employers would need to identify and interpret the changes in the tax code overhaul (Pub. L. 115-97) to determine withholding, the letter said.
New Jersey released revised withholding tables July 23. The new tables implement a withholding rate of 15.6 percent in a bill (A. 3088) signed July 1 by Gov. Phil Murphy (D).
New Jersey’s unemployment tax rates are to generally decrease for the period from July 1, 2018, to June 30, 2019, the state Department of Labor and Workforce Development said July 25.
Unemployment tax rates are determined with Table B for fiscal 2019, ranging from 0.4 percent to 3 percent for positive-rated employers and from 4.3 percent to 5.4 percent for negative-rated employers. For fiscal 2018, tax rates for experienced employers were determined with Table C and ranged from 0.5 percent to 5.8 percent.
The tax rate for new employers in fiscal 2019 is 2.8 percent, unchanged from fiscal 2018.
Wyoming’s unemployment-taxable wage base is to increase to $25,400 from $24,700 in 2019, a spokesman for the state Department of Workforce Services told Bloomberg Tax July 23.
New Jersey is to allow the imposition of local payroll taxes under a bill (A. 4156) signed July 24 by Gov. Phil Murphy (D).
The bill provides that municipalities may impose a tax of up to 1 percent of employers’ payrolls. However, under state law, only municipalities with a population of at least 200,000 may impose taxes. Newark already administers a payroll tax.
Take a free trial of Bloomberg Tax’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 firstname.lastname@example.org.
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 email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)