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Bios. Laura Lough, Esq.Senior Manager of State Payroll Information Resources for APACo-author of APA's Guide to State Payroll Laws and APA's Guide to Local Payroll Taxes. Managing Editor of PayState Update, APA's state and local payroll compliance e-newsletter. Contributes to other APA publication
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1. New York Metropolitan Chapter of the APARoundup of State Payroll DevelopmentsPresented by Laura Lough, Esq. and Lia Coniglio, Esq. December 1, 2011
2. Bios Laura Lough, Esq.
Senior Manager of State Payroll Information Resources for APA
Co-author of APA�s Guide to State Payroll Laws and APA�s Guide to Local Payroll Taxes. Managing Editor of PayState Update, APA�s state and local payroll compliance e-newsletter. Contributes to other APA publications, such as Paytech and Payroll Currently, and course books.
Graduated from the State University of New York at Geneseo and Western New England University School of Law. Member of the NY and MA Bars.
Lia Coniglio, Esq.
Editor of Payroll Information Resources for APA
Co-author of APA�s Guide to State Payroll Laws and APA�s Guide to Local Payroll Taxes. Writes and edits PayState Update, along with other APA publications, such as APA�s Guide to Federal and State Wage & Hours Laws, and course books.
Graduated from the State University of New York at Buffalo and Albany Law School. Member of the NY Bar. About the Speakers
3. Pennsylvania Act 32 Changes EIT collection system
Fully implemented 1-1-12
Standard forms, proposed regs
Withhold higher rate
Where employee lives (resident rate) vs. where employee works (nonresident rate)
Filing & payments
Quarterly or monthly (electronic)
Annual reconciliation return & Forms W-2
Local Payroll Taxes
4. Wage Theft Prevention Acts New York
Pay rate notices must be given to all employees by 2-1-12
Yearly AND at time of hire thereafter
California
Pay rate notices must be given at time of hire only, beginning 1-1-12
Not required for employees exempt from overtime requirements
Labor Law
5. Latest Developments Standard forms
IWO � revised in May
NMSN � revised in March
Verification of Employment Response � new
e-IWO portal
Transmit IWO info between employers & states
Lump sum payments
Debt inquiry service
Child Support
6. Paid Time Off Bank Employer prohibited from making deductions from employee�s paid time off bank to recover an overpayment of wages
Even if it is employer�s policy to do so
Opinion letter issued on 2-4-11
Available on state DOL website at www.labor.ny.gov
Note: NY DOL no longer issues individual opinion letters
Wage Deductions in New York
7. Health Care for Adult Children Health coverage for employee�s child is tax-free until year child reaches age 27
Federal law, eff. 3-30-10
Not all states followed fed tax treatment
Wisconsin last state to conform
Governor signed legislation 11-4-11
Effective beginning with tax year 2011
Department of Revenue guidance
FMV of benefit no longer imputed income Benefits
8. Withholding Changes Proposed changes reflect expiration of �millionaire�s tax� on 12-31-11
Effective 1-1-12, highest state tax rate will again be 6.85%
Temporarily increased in 2009 to 8.97% for filers earning over $500,000 per year
Supplemental wage tax rates
Effective 1-1-12, state rate will decrease to 7.65% from 9.77%
Yonkers rate will decrease to 1.1475% from 1.70975%. New York & Yonkers
9. New York Tax Treatment Same-sex marriage legal in NY
Governor signed legislation eff. 7-24-11
No NYS, NYC, Yonkers withholding on value of certain benefits for same-sex spouse, children
Same-sex marriage legal in other states
CT, DC, IA, MA,NH, VT
Federal government does NOT recognize same-sex marriage
Benefits subject to FIT reporting, withholding Same-sex Marriage
10. UI Trust Fund Insolvency As of 11-15-11, 27 states/territories have outstanding loans from the Federal Unemployment Account (FUA)
Check for updates on federal DOL website at http://workforcesecurity.doleta.gov/unemploy/ budget.asp#tfloans
States use loans to pay UI benefits
Interest on these FUA loans came due this year
NY employers received interest assessment surcharge that was due on 8-15-11 State Unemployment Insurance
11. FUTA Credit Reduction States 21 states/territories are FUTA credit reduction states for 2011
Most states face a reduction of 0.3%
AR, CA, CT, FL, GA, IL, KY, MN, MO, NV, NJ, NY, NC, OH, PA, RI, VI, VA, & WI
Indiana � 0.6% (2nd consecutive year)
Michigan � 0.9% (3rd consecutive year)
South Carolina � NO reduction in 2011
IRS Form 940, Schedule A
State Unemployment Insurance
12. GA: Only Lawyers Can Answer Georgia Supreme Court decision 9-12-11
Non-lawyer cannot answer garnishments
Must use Georgia attorney. If not:
Answers returned by court clerk
Default judgment, employer pays debt
APA�s GATF Garnishment Subcommittee
Proposed legislation in 2012 Creditor Garnishments
13. Updates on UI, TDI, FLI &Employee Notice Requirements 2012 taxable wage base = $30,300
2012 employee contribution rates
UI = 0.425% ($128.78 max)
TDI = 0.2% ($60.60 max)
FLI = 0.08% ($24.24 max)
Employee Notice Requirements
Employers required to keep payroll records must post notice
Notice available on Department of Labor & Workforce Development�s website: http://lwd.state.nj.us/labor/forms_pdfs/EmployerPosterPacket/MW-400.pdf
New Jersey
14. Catch-up Withholding Retro. 1-1-11, PIT rates increased
Catch-up withholding tables & calculation rules eff. 8-1-11
Problems for payroll software
New Form CT-W4T, 2011 Withholding Certificate
Eff. 1-1-12, revised withholding calculation rules issued Connecticut
15. Recent Changes Claims Resolution Act
New data element to be reported
First day of work
Eff. 6-8-11 with additional time for states
NY revised Form IT-2104
Trade Adjustment Act
Affects rehired employees
60 consecutive days
Eff. 4-21-12 with additional time for states
New Hire Reporting
16. State & City Developments Connecticut
Eff. 1-1-12, employers with 50 or more employees must provide paid sick leave annually to service workers
Accrue 1 hour of paid sick leave for every 40 hours worked, up to 5 days of paid sick leave a year.
Seattle
Eff. 9-1-12, employers must provide paid sick leave with accrual rates based on the number of employees at the company
Paid Sick Leave
17. Thank You