May Federal and State News

Federal Updates

Form I-9 Website: Federal law requires every employer and agricultural recruiter/referrer-for-a-fee hiring an individual for employment in the United States to verify his or her identity and employment authorization through completion of Form I-9, Employment Eligibility Verification.

State Updates

 

California

Supreme Court makes ruling on Meal and Rest Breaks: The ruling on the mean and rest breaks has finally been made by the California Supreme Court [Brinker Restaurant Corp. v. Superior Court of San Diego County, No S166350]. The decision was made that employers must relieve employees from all work by giving them a meal period. In reference to rest breaks, the court said, employers must attempt to make “a good faith effort to authorize and permit rest breaks in the middle of each work period, but may deviate from the preferred course” when it is not practical.  For meal periods, the employer is not responsible for ensuring the employees do not work, but employers cannot encourage or require an employee to work during a break

Pay Rate Notice Updated The employee pay ratio notice template has been updated and posted by the Division of Labor Standards Enforcement on their website. They also updated and posted FAQ for the Wage Theft Prevention Act of 2011 which addresses the new pay ratio notice.

Connecticut

Bill to Increase Minimum WageHB 5291, a bill to increase minimum wage, was passed by the House and sent to Senate on April 26th. The bill would increase hourly wage to $8.50 beginning January 1, 2013 and increase to $8.75 on January 1, 2014.

Idaho

Revised Tax Rates, WIthholding Guide and Tables: Retroactive to 1-1-2012, new withholding tables issued. The tables should be implemented as soon as possible. They are contained in the new version of A Guide to Idaho Income Tax Withholding booklet which is available on the state’s website. In addition, the supplemental rate is now 7.4%, previously 7.8%.

Indiana

Filing Frequency Amended: Beginning January 1, 2013, if the average monthly amount of all tax required to be held from the previous calendar year does not exceed $1,000, the employer is able to report and pay withholding taxes on an annual basis. The previous amount was $10.00. Also beginning January 1, 2013 employers must report and pay withheld taxes on a monthly or annual basis - they can no longer report or pay on quarterly or semi-annually schedule.

Maine

Internal Revenue Code Updated: For the 2012 tax year, the Internal Revenue Code (IRC) has been updated to align with the federal IRC that took effect on December 31, 2011.

Minnesota

Department of Employment and Economic Benefit Claims If an employer or its agents do not properly or timely respond to request by the Department of Employment and Economic Development on benefit claims, employment benefits can be charged to an employer’s account and are able to be applied to future tax rates.

Nebraska

For new hire reporting purposes, a “rehire” means the first day an employee begins employment with an employer following a termination of employment with the same employer.  Effective 10-1-12, “termination of employment” is clarified to not include temporary separations from employment, such as a temporary layoff of less than 60 days in length.  These clarifications were enacted to conform to recent changes in federal law.

New York

Increased Minimum Wage for Recipients of $1 million dollars from the city
The city council approved a bill on April 30 that would require employers who directly receive $1 million dollars or more in city subsidies to pay their employees a minimum wage of $11.50 an hour or $10.00 an hour plus benefits. Manufacturing, affordable housing, nonprofits and small businesses would be exempt from this bill.

Oregon

Internal Revenue Code Updated: Beginning June 4, 2012, references to the state law in the Internal Revenue Code will mean the federal IRC that took effect on December 31, 2011.

Rhode Island

”Rehire” Defined for New Hire Reporting: To comply with the recent change in the federal law. The date of rehire is the first day of services performances by an employee who was previously employed by the employer but has not been working a consecutive 60 days. consecutive weeks).  This clarification was enacted to conform to a recent change in federal law.

Tennessee

Electronic Income Withholding Orders for Child SupportOn May 11, Tennessee joined 22 other states and the District of Columbia in sending electronic income withholding orders (e-IWO) for child support.

Utah

Additional Details for New Hire Reporting: Beginning July 1, 2012 employers are going to be required to include the date of hire or date of rehire on new hire reports. The definition for the date of hire is the first day of services is performed for compensation. The date of rehire is the first day of services performances by an employee who was previously employed by the employer but has not been working a consecutive 60 days.

Washington

Additional Details for New Hire Reporting: To comply with the recent change in federal law, employers must now report the first date an employee worked for compensation. This change is effective June 7, 2012. The definition for the date of hire is the first day of services is performed for compensation. The date of rehire is the first day of services performances by an employee who was previously employed by the employer but has not been working a consecutive 60 days.

West Virginia

Electronic Funds Transfer Threshold (EFT) Lowered: Employers with a tax liability of $100,000 or more per tax type must use electronic funds during the preceding 12 month period of July 1 to July 30. For tax years beginning on or after January 1, 2013 it will be reduced to $50,000, for tax years beginning on or after January 1, 2014 reduced to $10,00 and for tax years beginning January 1, 2015 reduced to $10,000. reports.

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