February Federal and State News

February 1 2012

Federal Updates:

The 2012 supplement to Circular E, Employer’s Supplemental Tax Guide (Pub. 15-A), has been released by the IRS.  The publication is available on the APA website at future developments affecting Publication 15-A will be posted at on the IRS website.

State and Local Updates


Alabama:

E-Verify Required for new employees: Public contracts, grants or incentive from the state, political subdivision or state-funded entity must be processed through E-Verify. The Alabama E-Verify Employer Agent Service is available for companies with 25 or fewer employees.

Arkansas

Form W-2 specifications: The Arkansas Department of Finance and Administration no longer accepts diskette, magnetic tape or magnetic cartridge to file Form W-2. Download information on filing electronically.

Colorado

Form W-2 electronic filing: By April, 2, 2012, companies with filing more than 250 Forms W-2, must be filed electronically with the Colorado Department of Revenue using Revenue Online.

Connecticut

Form W-2 electronic filing: The Department of Revenue Services now accepts amended and supplemental filing for Forms W-2 for tax year 2011. More information on W-2 Electronic Filing.


Tax Guide for Employers Updated: Revised withholding tables, calculation rules and forms have been released in the IP 2012.

Delaware

Withholding tables revised: The exact computation method withholding table has been changed - the top personal income tax rate was reduced to 6.75% on taxable income in excess of $60,000.

Massachusetts

Adoption of Government Transit and Transportation Benefits: Massachusetts adopted the federal exclusion amount of $240 per month to provide employees with parkings and $125 per month for combined transit pass and commuter highway vehicle transportation benefits.

Michigan

FUA loan repaid: Michigan’s $3.2 billion loan from the Federal Unemployment Account has been repaid through the sale of variable rate bonds. The bonds will be repaid by a quarterly obligation assessment imposed on contributing employees.

Minnesota

Threshold lowered for electronic W-2 Filing: An employer with more than 10 Forms W-2 must now file electronically through two systems - e-Services or Electronic Data Exchange. W-2 Forms on CD-ROM, diskette or PDF are no longer accepted.

New Mexico

Withholding Tables Revised: Due to mistakes in the dollar amount ranges, the Taxation and Revenue Department revised the percentage method withholding tables.

Ohio

Form 2 Filing UpdatedFeb. 29, 2012 is the deadline for employers with 250 or more Forms W-2 to file with the Department of Taxation by magnetic media - CD and magnetic charges are accepted if accompanied by a transmittal form.

Oregon

Form W-2 Filing System Update: The first week of March, the Oregon Department of Revenue will make “iWire Direct” available enabling companies with a low amount of W-2’s to input directly into the system. All employers must electronically file W-2s with the DOR by April, 2 2012 and file a paper 2011 Form WR, Oregon Annual Withholding Tax Reconciliation Report.

Pennsylvania

Act 32 Manual made available: A 118 page policy and procedures manual, introducing the EIT, information of the sections in Act 32 regarding the new EIT and an appendix, has been released regarding.

South Carolina

W-2 electronic filing portal: An online business portal has been released so employers can now file Forms W-2 electronically with the Department of Revenue. The new portal provides small companies with an easier direct entry method and larger companies and payroll processing companies an easier way to file information in a single file. It is required for companies with over 250 Forms to file electronically or on magnetic media.

Washington

Worker’s Compensation Rates: The 2012 workers’ compensation rates have been adopted, with no general rate increase. The premium rate has 3 elements; 1) the accident fund premium, 2) the medical aid premium, and 3) the supplemental pension assessment.

West Virginia

EFT Threshold: If an employer’s tax liability is $100,000 or more per tax type (withholding taxes included) during the immediately preceding 12 month period of July 1- June 30, they must use EFT.  Over the next few years, the threshold will be decreased incrementally to $10,000

Form W-2 Filing Revised:Companies with 50 or more employers nyst file Forms W-2 electronically or on magnetic media to the State Tax Department - this can be done through MyTaxes. Forms W-2 can also be transferred using FTP or CD-ROM (no other magnetic media is accepted).

Source: APA Payroll Currently