Government Changes for Payroll in 2012

It’s that time of year again when Payroll, Accounting and Tax departments begin reviewing the current year information, preparing for year end and looking at what is new for the upcoming year.  For the year 2012 there will be a number of changes in Payroll enacted by the Federal, State and Local governments.  Below is a summary of what to look for in the upcoming year.

Federal - IRS

Rough draft of Form 941: Employers Federal Quarterly Tax Return. Click here for a draft of Form 941 (via irs.gov) Click here to read about the 941 Revised Form.
Rough draft of Form 940: Employers Federal Unemployment Tax Return. Click here for a draft of Form 940 (via irs.gov) Click here to read about the 940 Revised Form.
The IRS released a revised Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, in August 2011. The form is available here (via irs.gov)

Federal – Social Security Administration

SSA has revised the SSNVS, Social Security Number Verification Service, process to remove Gender as one of the valid verification codes.

  • Gender will no longer be an input field on the input screen
  • Gender field will not be removed from the electronic file, but will be replaced with a blank before processing
  • SSA will no longer use codes 2 & 4 for verification
  • Codes 3 & 5 have been reworded to remove gender
  • Codes 1 & 6 will not be changed

State Unemployment

The following states have already announced State Unemployment Changes for 2012:
Connecticut. Illinois, Iowa, Kentucky, Minnesota, Montana, Nevada, New Jersey, New Mexico, North Carolina, Oklahoma, Rhode Island, Virginia, Washing state & Wyoming.

State Withholding

The following states have already announced state tax table changes for 2012:

Maryland and Oklahoma

Other changes will be announced in future notifications and among these are changes to minimum wage, unclaimed wages, EFT, electronic file transfer, of taxes, and employee sick accrual programs.

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