Overview: A growing employer trend over the past several years has been to integrate payroll within the HR department. So, now more than ever, HR managers need to understand all the complex issues and requirements involved in payroll tax law compliance in order to effectively oversee payroll processing and ultimately avoid costly penalties. This involves managing the following tasks, among many others:
Trends: The following are just a few of the important issues that will have an impact on payroll in 2014!
Author: Rena Pirsos, JD, Legal Editor
All New York employers will be required to file and pay withholding and unemployment insurance taxes electronically starting with the first quarter of 2015.
Effective with returns due on and after April 30, 2015, all New York employers will be required to file certain withholding tax and unemployment insurance (UI) returns electronically.
The Internal Revenue Service has announced the tax year 2015 cost-of-living adjustments affecting dollar limitations on benefits and contributions under qualified retirement plans and other inflation-adjusted amounts. Many of the pension plan limitations will increase for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Other limitations will not change because the relevant thresholds were not met.
The Social Security Administration has announced that the Social Security taxable wage base will be $118,500 for 2015, as adjusted for inflation. As in prior years, there is no limit on the amount of wages subject to Medicare tax withholding. The Social Security and Medicare (FICA) tax rates will not change for 2015.
The US Supreme Court declined to review challenges to three federal appeals court rulings striking down same-sex marriage bans in Indiana, Oklahoma, Utah, Virginia and Wisconsin, which also cleared the way for the legalization of same-sex marriage in Colorado, North Carolina, West Virginia and Wyoming. Bans also fell in Alaska, Arizona, Idaho and Nevada.
Employers must file the new Form 8922, Third-Party Sick Pay Recap, by February 28, 2015, in order to reconcile agent or insurer payments of sick pay to employees reported on Forms 941 and W-2.
The Los Angeles City Council on October 6 passed a new ordinance that will require hotels in Los Angeles to provide workers a minimum wage and paid time off, effective 2015 or 2016, depending on the size and location of the hotel.
Employers will be required to file new Form 8922, Third-Party Sick Pay Recap, for sick pay paid to employees by a third-party agent or insurer in 2014 in order to reconcile Forms 941, Employer's Quarterly Federal Tax Return, and Forms W-2, Wage and Tax Statement. Previously, a third-party payer of sick pay filed recap Form W-2, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration.
HR and legal considerations for employers regarding payroll.