March Federal and State News

Federal Updates:

Two Percent Social Security Tax Cut Extended: The reduction in the social security tax rate paid by employees from 6.2% to 4.2% that was set to expire at the end of February 2012 has now been extended until the end of 2012.

IRS Release First Quarter 2012 Form 941: The IRS has released the Employer’s Quarterly Federal Income Tax return for 2011, along with the Schedule R, Allocation Schedule for Aggregate Form 941 Filers.  See our blog post, IRS Releases First Quarter 2012 Form 941 for more details.

State Updates

Florida

DOR collected UI Interest Assessment: Employers will be receiving the Unemployment Tax Assessment Notice for Interest on Federal Advances, Form UCT-27Fi, from the Department of Revenue. The DOR is repaying the interest that is owed to the Federal Government from loans that were used to pay unemployment benefits. The payment is due by June 30, 2012 for all eligible employers who can pay online using   the DOR payment system.

Georgia

SDU Bank Changed: Beginning March 1, 2012, a new bank is now being created for employers that submit child support payments through EFT to the State Disbursement Unit. Contact the EFT Outreach Coordinator at 866-836-6434 for the new bank account information.

Idaho

IRC References Updates: Effective January 1, 2012, references in state law to the Internal Revenue code were updated to reflect the Internal Revenue Code of 1986.

Louisiana

Withholding Rates Adopted: The following rules were adopted for 2012.

  • Quarterly Filing Frequency: All employers must submit quarterly withholding returns, Employers Return of Louisiana Withholding Tax Form L-1
  • Employers that remit withheld taxes by EFT quarterly: Employers that are required to set aside withheld taxes using EFT must do so by filing a separate electronic form every quarter
  • Annual reconciliation changed to transmittal: Form L-3 will now be used as a transmittal for Forms W-2 and the name will be changed to Transmittal of Withholding Tax Statements (previously Reconciliation of Louisiana Withholding.

Maine

All Payroll Returns and Annual Reconciliation Forms to be Filed Electronically: All employers must electronically file their withholding forms, unemployment insurance tax returns and the annual reconciliation form quarterly.

Michigan

Unemployment Insurance ‘Obligation Assessment’ is being Imposed: The Michigan government has issued bonds to pay off their federal loans and become financially sound to its unemployment insurance trust fund. An Obligation Assessment is being imposed on all contributing employers until their bonds are paid off - the pay off rate will be determined annually.

Nebraska

Fremont E-Verify Ordinance: All Fremont employers must be registered by May 4, 2012 to use E-Verify to verify the work eligibility status for newly hired employees.

New Mexico

Santa Fe Minimum Wage Increase:: As of March 1, 2012, the minimum wage in Santa Fe was increased from $9.85 per hour to $10.29 per hour.

Ohio

Akron Tax Amnesty Program is Available: The city if Akron is offering a tax amnesty program for employers who failed to remit withholding taxes that are located in the city or one of the Joint Economic Districts for the period from March 5, 2012 to May 4, 2012. Employers should contact the Income Tax Division at 330-373-2522 for more information.

Oregon

Due Date for Forms W-2 Filed Through iWire Direct has Been Extended: The Form W-2 electronic filing due date of March 31, 2012 has been extended to May 31, 2012 for employers who use iWire Direct.

Virginia

IRC References Updated: As of February 7, 2012, all the references in the state law to the Internal Revenue Code have been updated to reflect the Internal Revenue Code amended December 31, 2011.

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