July State and Local Updates

State Updates

Arizona

Written Claim Minimum for Unpaid Wages to Increase: Beginning August 2, 2012, employees are able to file written claims against their employer to the Industrial Commission for unpaid wages up to $5,000. The previous limit was $2,500.

Colorado

Unemployment Bond Authorized: As of July 1, 2012 Colorado was given approval to issue revenue bonds to fund its Federal Unemployment Account (FUA) loans.

Illinois

Wage Reporting: Beginning January 1, 2013 employers required to report wages electronically (employers with 250 or more employees) must report unemployment insurance taxable wages every month.

Living Rate Increase: As of July 1, 2012 the living ratein Chicago is set to increase from$11.18 to $11.53 per hour.

New Hire Reporting Addition: To comply with recent Medicaid reform, employers must include the employee’s monthly projected wages on new hire reports.

Kentucky

New Website for Child Support: The Child Enforcement Program released a new website that allows employers to gain access to case and account information over a secure environment.

New Hire Reporting: Beginning July 12, 2012, employers will be required to report the date an employee first performed services for pay on new hire reports.

Louisiana

New Hire Reporting: Beginning August 1, 2012, employers will be required to report the date an employee first performed services for pay on new hire reports.

Maine

Overtime Rules for Truckers: The federal laws involving the payment of overtime for truck drivers will be implemented on August 30, 2012. This will not affect unions’ rights to negotiate pay rates in Maine.

Massachusetts

Living Wage Increase: The living wage rate in Somerville is increasing from $11.30 an hour to $11.71.

Michigan

Personal Income Tax Rate Decreased: On June 27, 2012, Governor Rick Snyder signed legislation (H.B. 5699) which decreased the personal income tax rate to 4.25%, previously 4.35%. The governor signed a second bill (H.B. 5700) on June 28, 2012 that increases the standard deduction from $3,700 to $3,950. Both of the bills will go into effect on October 1, 2012.

Nebraska


Income Tax Rates Decreased: Beginning January 1, 2013 the personal income tax rates will be decreased for the lowest three income tax brackets. The new range will be 2.46% to 5.01%, previously 2.56% to 5.12%. The top bracket will stay at 6.84%. Also, beginning January 1, 2014, rates will no longer change - instead, tax brackets will be expanded so larger income amounts will be taxed at lower rates.

Living Wage Increase: The living wage rate in Lincoln increased on July 1, 2012 to $12.19 an hour, previously $11.83. For employers offering health insurance or retirement benefits,the wage increased to $11.23 an hour, previously $10.75.

New Hampshire

New Hire Reporting: Effective August 10, 2012, employers will be required to report the date an employee first performed services for pay on new hire reports.

New Jersey


Experience Rated Employers Rates: For the fiscal year 2012-2013, experience-rated employers range of rates is under Table E. The range is 1.2% to 7%, the rate for new employers is 3.4%.

Oklahoma


Professional Employer Organization (PEO) Rules: Beginning November 1, 2012, Professional Employer Organizations will receive a late fee of $500 if they do not renew their registration within 30 days of the renewal date. In addition, the PEO’s registration application can be rejected by the Insurance Commissioner due to the following reasons:

  1. The application is incomplete or incorrect
  2. Required documents are missing or incorrect
  3. The Registration fee is not included
  4. There are misrepresentations on the application
  5. If the applicant or its officers are considered to lack good morals, business integrity, or financial responsibility
  6. The controlling person has violated a provision of the Oklahoma PEO Recognition and Registration Act

Oregon


Living Wage Rate Increase: As of July 1, 2012 the living wage rate increased in Corvallis to $12.11 an hour, previously $11.74. In Portland, the wage increased to $11.77, previously $11.39.  If healthcare of retirement benefits are provided, the rate is $9.93.

Pennsylvania


Bonds Authorized to Repay Unemployment Insurance Loans: Effective January 1, 2013 Pennsylvania was given approval to issue revenue bonds to fund its Federal Unemployment Account (FUA) loans.

Unemployment Insurance Taxable Wage Base: Beginning January 1, 2013, the unemployment insurance taxable wages will increase to $8,500, previously $8,000.  The increases will continue until 2018 - $8,750 in 2014; $9,000 in 2015; $9,500 in 2016; $9,750 in 2017 and $10,000 in 2018.

Rhode Island

Minimum Wage Increase: On June 20, 2012, Governor Lincoln Chafee (I) signed legislation stating that the state minimum wage is increasing on January 1, 2013 to $7.75 an hour, previously $7.40.

Vermont

New Hire Definition: To comply with federal law, the new hire definition for new hire reporting has been changed to mean an employee who has never been employed by or has not been employed for 60 days by the company.

Living Wage Rate Increase: As of July 1, 2012 the living wage rate in Burlington increased to $17.71 an hour, previously $15.94. If the employer provides health insurance, the current rate of $13.94 does not change.

Washington

Unemployment Insurance Wage Base: Beginning January 1, 2013 the unemployment insurance taxable wages will be increased to $39,800, previously $38,200.

Living Wage Rate Increases: As of July 1, 2012, the living wage rate in Bellingham increased to $14.20 an hour, previously 13.42. For employers who offer health care benefits, the rate increases from $12.19 to $12.35.

To stay up to date on federal and state payroll, HR & tax changes, check back often.  Make sure you also read State and Local Government Updates for June.

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