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

Senate Republicans Release Revised Health Care Bill

On July 13, Senate Republicans posted a revised draft of the Better Care Reconciliation Act (BCRA). It retains the Additional Medicare Tax of 0.9%. The legislation would still repeal individual and employer health care mandates and delay implementation of the “Cadillac tax” until 2026. American Payroll Association

House Passes Mobile Workforce Bill

On June 20, the House of Representatives passed H.R. 1393, the Mobile Workforce State Income Tax Simplification Act of 2017. If enacted, the legislation would provide a 30-day safe harbor against nonresident income tax withholding for employees who travel across state borders on business travel. An identical bill, S. 540, is under consideration in the Senate. American Payroll Association 

Idaho Issues Revised Withholding Guide and Tables

The Idaho State Tax Commission recently updated the withholding guide and tables with computation methods for 2017. Employers must use the new tables going forward, but don’t need to adjust withholding going back to January 1. American Payroll Association

New Illinois Withholding Tables, Supplemental Wage Tax Rate

Effective July 1, the Illinois Department of Revenue has issued new withholding tables reflecting an individual income tax rate increase to 4.95% from 3.75%. This means the withholding rate and supplemental wage tax rate also increased to 4.95%. American Payroll Association

Kansas Issues Revised Withholding Tables, Increases Supplemental Wage Tax Rate

The Kansas Department of Revenue has issued revised withholding tables and rates. Legislation was recently enacted that amended personal income tax rates retroactive to January 1, 2017. However, the 2018 tax rates were used to compile the tax tables for 2017. Using the higher rates for the second half of 2017 should allow most employees to “catch-up” on their withholding for tax year 2017. American Payroll Association

Payroll Currently Issue No. 12

The current issue, which is dated December 2, 2016, includes coverage of the following payroll compliance developments: Texas Judge Blocks Implementation of ‘White Collar’ Salary Level Change. On November 22, a federal judge in the Eastern District of Texas issued a nationwide order temporarily stopping the U.S. Department of Labor (DOL) from implementing the new “white collar” exemption rules on December 1. IRS Extends Deadline to Give ACA Forms to Employees. The IRS extended the deadline until March 2, 2017, for employers and insurers to give the 2016 Affordable Care Act...