Payroll Sections of Employment Law Manual Updated to Reflect Tax Regulations, 2014 Standard Mileage Rates and Other Changes

Author: Rena Pirsos, XpertHR Legal Editor

Several Payroll sections of the Employment Law Manual have been updated for 2014.

The Withholding Taxes section now includes final regulations issued by the Internal Revenue Service (IRS) governing the implementation of the 0.9 percent additional Medicare tax on high income earners that took effect January 1, 2013, under the Patient Protection and Affordable Care Act (PPACA). The final regulations replace earlier proposed regulations by providing additional details regarding how an employer should proceed if it has not withheld the correct amount of AMT from an employee's wages. Employers must implement the final regulations starting January 1, 2014.

The Taxation of Employee Compensation section has been updated with the 2014 optional standard mileage rates, which are used to calculate the deductible cost of operating a vehicle for business, charitable, medical or moving purposes, and the company fleet maximum valuation amounts. Employers may also use the rates to determine the fair market value of an employee's taxable personal use of an employer-provided vehicle under certain valuation methods.

The Taxation of Employee Benefits section has been updated to include Internal Revenue Service Notice 2014-1, which clarifies the effects of the United States Supreme Court's decision in U.S. v. Windsor and IRS Revenue Ruling 2013-17, regarding same-sex marriage, on cafeteria plans, including flexible spending arrangements and health savings accounts.

The Payment of Wages: Oregon section of the Employment Law Manual has been updated to reflect changes in the direct deposit, electronic paycard and electronic pay statement laws, effective January 1, 2014.