All Items: Payroll

  • Illinois Narrows 'Disqualifying Misconduct' for Unemployment Insurance Benefits Claims Purposes

    February 11, 2016

    A recent amendment to Illinois law and an Illinois Supreme Court ruling have clarified the meaning of "misconduct" that disqualifies a former employee from collecting unemployment insurance (UI) benefits. While both the new law and the ruling provide needed guidance, employers in the state may find it harder to fight a benefit claim on this basis if they do not have specific policies in place.

  • IRS Issues Guidance on Retroactive Increase in Excludable Transit Benefits

    January 12, 2016

    In Notice 2016-06, the IRS provides correction procedures for fourth quarter Forms 941 and Forms W-2, in light of the retroactive increase in the 2015 monthly transit benefit limit under the PATH Act of 2015.

  • Omnibus Tax, Spending Bill Impacts Payroll Administration

    December 22, 2015

    President Obama has signed an omnibus appropriations bill (H.R. 2029) that will significantly impact payroll operations. The Protecting Americans From Tax Hikes Act of 2015 (PATH Act), which represents half of the bill, permanently extends parity between qualified (tax-free) employer-provided parking and commuter benefits and substantially revises the rules for filing Forms W-2, Wage and Tax Statement, and 1099-MISC, Miscellaneous Income. The Consolidated Appropriations Act of 2016, which is the other half of the omnibus bill, amends the Affordable Care Act.

  • 2016 Federal Percentage Method Withholding Tables Released by IRS

    December 8, 2015

    The IRS has released advance copies of the federal percentage method withholding tables effective for wages paid in 2016. The withholding allowance amounts by payroll period have changed from the 2015 amounts.

  • 2016 Pension Plan Limits, 401(k) Deferral Limit Unchanged

    October 22, 2015

    The Internal Revenue Service (IRS) has announced the tax year 2016 cost-of-living adjustments affecting dollar limitations on benefits and contributions under qualified retirement plans and other inflation-adjusted amounts. The pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment

  • IRS Announces 2016 Inflation Adjustments to Fringe Benefits, Increase in Qualified Parking Benefit Amount

    October 22, 2015

    The IRS has announced the 2016 annual cost-of-living adjustments made to several employee benefits and taxable amounts, based on changes to the Consumer Price Index. These are the maximum amounts that may be excluded in 2016 from an employee's taxable income for specific benefits.

  • Social Security Wage Base, FICA Tax Rates Unchanged For 2016

    October 19, 2015

    The Social Security Administration (SSA) has announced that the Social Security taxable wage base will not be adjusted for inflation and will remain $118,500 for 2016. Accordingly, FICA tax rates will also stay the same.

  • IRS Issues Optional 'High-Low' and Special Per Diem Rates for 2015-2016

    September 18, 2015

    The IRS has issued Notice 2015-63 announcing the annual list of "optional high-low" federal per diem rates, effective for travel undertaken on or after October 1, 2015 .

  • SSA Revises SSN Application Rules, Updates SSNVS Handbook for Employers

    September 2, 2015

    The Social Security Administration (SSA) has issued a final rule, effective September 9, 2015, revising its regulations regarding the procedures an individual should follow to apply for a Social Security Number (SSN) card. The rule also revises certain related evidence requirements. The Social Security Number Verification Service (SSNVS) Handbook has also been updated.

  • IRS Launches Early Interaction Initiative

    August 27, 2015

    The IRS has launched an Early Interaction Initiative, aimed at helping employers understand and meet their payroll tax responsibilities. The initiative may help reduce employment tax delinquencies, along with interest and penalties, which may accrue as a result of an employer missing required payments.

About this category

News: HR and legal considerations for employers regarding payroll.