The Payroll Report: May 7 to May 11


 

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Federal

 

The law governing time-and-a-half overtime calculations is to be revised, the Labor Department's Wage and Hour Division said in the unified regulatory agenda released May 9. The department is to release the proposed rule regarding overtime calculations in September.

 

The Internal Revenue Service issued guidance May 7 that clarifies how to determine the wage and salary amounts that are exempt from levy. The guidance follows changes that were made to the calculations under the recent tax code overhaul.

 

Among the changes contained in the notice, the tables used to determine property exempt from levy base exempt amounts on the number of exemptions instead of the number of dependents.

 

The notice details the three steps to figure the amount exempt from levy: employers are to calculate the amount of wages, salary, or other income exempt from levy; the additional amount exempt from levy if the taxpayer or the taxpayer’s spouse is at least 65 years old and blind; and the exempt amount needed to pay a child-support order.

 

State

 

The filing deadline for employment tax returns was extended for Alabama victims of severe storms that started March 19, 2018, the IRS said May 2 in Notice AL-2018-03. Employers with operations in Calhoun, Cullman, and Etowah counties have until July 31, 2018, to file employment tax returns.

 

Connecticut workers who care for those with intellectual disabilities at group homes and day programs are to be paid an hourly minimum wage of at least $15, effective July 1, 2018, under a measure (H.B. 5460) signed May 9 by Gov. Dannel P. Malloy (D).

 

New Iowa income tax rates are to take effect for tax year 2019 under a bill (S.F. 2417) that passed the state legislature May 5. The bill was sent to Gov. Kim Reynolds (R), who supports the measure.

 

The bill updates Iowa’s Internal Revenue Code conformity date to March 24, 2018, effective for tax year 2019.

 

Income tax wage brackets were not changed by the bill, but are to be annually adjusted for inflation. If state revenue goals are met on June 30, 2022, then the nine income tax brackets would be reduced to four effective Jan. 1, 2023, under the bill’s provisions.

 

Kentucky updated income tax withholding tables and a computer formula, which were released May 9 on the state revenue department’s website. The computer formula implements legislation (H.B. 366) to  set the state’s 2018 individual income tax rate at a flat 5 percent, effective retroactive to Jan. 1, 2018.

 

Local

 

Some local income tax rates in Ohio are to increase July 1, 2018, as a result of ballot measures that were approved May 8 by voters in the primary election.

 

Income tax rates are to increase July 1, 2018, in Bellevue, to 2 percent from 1.5 percent; Brooklyn Heights Village, to 2.5 percent from 2 percent; Canton, to 2.5 percent from 2 percent; and Hiram Village, to 2.25 percent from 2 percent. The increases were confirmed to Bloomberg Tax on May 10 by officials in the jurisdictions.

 

The city of Tiffin is to increase its tax rate Jan. 1, 2019, to 2 percent from 1.75 percent, an official said May 10.

By Jazlyn Williams

 

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