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Alaska Governor Proposes 1.5% Payroll Tax

The governor of Alaska recently proposed a 1.5% payroll tax on all wages earned in Alaska (by residents and nonresidents) up to a cap of $2,200 per employee or twice the previous year’s Permanent Fund Dividend amount, whichever is higher. If enacted, withholding would be required in 2019. American Payroll Association

Rhode Island Becomes Latest State to Enact Paid Sick Leave Law

Effective July 1, 2018, employers will be required to provide covered employees who work in Rhode Island with paid sick leave. Currently, Arizona, California, Connecticut, District of Columbia, Massachusetts, Oregon, Vermont, and Washington have laws requiring certain employers to provide paid sick leave, along with several cities and counties. American Payroll Association

IRS Provides Tax Relief for Disaster Victims

The IRS is providing tax relief for victims of Hurricane Harvey and Hurricanes Irma and Maria. The IRS has also extended tax relief to victims of California wildfires. The tax relief includes extending filing deadlines and waiving late deposit penalties for these disasters. For hurricane victims, the IRS is permitting charitable donations through leave-based donation programs and relaxing rules for making hardship withdrawals and loans from employee retirement plans. American Payroll Association

Seven Indiana Counties Revise Income Tax Rates

Effective October 1, 2017, the Indiana Department of Revenue has issued a new Departmental Notice No. 1. Seven counties – Allen, Clinton, Fountain, LaGrange, Marion, Sullivan, and Vermillion – revised their county income tax rates. American Payroll Association

OCSE Revises Standard Child Support Withholding Order

The federal Office of Child Support Enforcement has released a revised version of the standard child support withholding order, Income Withholding for Support order/notice. Employers and other income withholders are directed to continue to honor previous forms for new income withholdings until August 31, 2018. The new version of the form has an “OMB Expiration Date” of August 31, 2020. American Payroll Association

USCIS Releases Revised Form I-9, Instructions

U.S. Citizenship and Immigration Services (USCIS) released a revised Form I-9, Employment Eligibility Verification, and updated the Instructions for Form I-9. Employers must begin using the new version (dated July 17, 2017) by September 18, 2017. Until then, either the revised version or the version dated November 14, 2016, may be used. The new form and instructions are available on USCIS’s Form I-9 website. American Payroll Association