September State and Local Updates

State Updates

Alabama

Department of Industrial Relations Transformation: Effective October 1, 2012, the Department of Industrial Relations will become the Department of Labor. Call 334-242-3460 to be directed to your contact.

Arizona

FUTA Credit Reduction: Arizona will become a Federal Unemployment Tax Act credit reduction state for 2012. The 0.3% credit reduction will increase the 2012 FUTA cost to $21.00.

Iowa

Unemployment Insurance Tax Rates: For 2013, Table 5 will determine state unemployment insurance tax rates. Table 5 states that unemployment insurance tax rates for experienced employers will run from 0% - 8.5%. The 2012 unemployment tax rate for experienced employers was determined by Table 4 with a range from 0% - 9%.

Kansas


Withholding Tables Update: The 2013 income tax withholding tables will reflect H.B. 2117, which restructured personal income tax rate and brackets. For more information see the 2013 Guide to Kansas Withholding Tax (KW - 100).

Missouri

SSN Identification RegulationsOn July 5, 2012, bill H.H. 1318 was signed which disallows employers to require employees to use the last 4 digits of their social security number as their employer identification number or other employer activity.

New Hire Reporting Changed: As of August 28, 2012, employers are required to report the first day an employer performed work for compensation.

Nevada
Unemployment Insurance Quarterly Reporting Updated: Magnetic media (including cartridges, diskettes or CDs) will no longer be an acceptable way to submit quarterly unemployment insurance reports to the Employment Security Division. Payments $10,000 or more must be submitted electronically through ACH credit or debit. The $10,000 limit also applies to the total amount authorized agents file for multiple employers.

Unemployment Insurance Taxable Wage Base Increase: Beginning January 1, 2013, the state unemployment insurance taxable wage base will increase to $26,900, previously $26,400.

New York

Unencrypted Social Security Number Regulations: Beginning December 12, 2012 employers can only request unencrypted Social Security Numbers for employment related purposes.

Oklahoma

Tax Extensions for Creek County: The IRS is offering businesses in Creek County extensions until October 2, 2012 on certain tax filing and payment deadlines. This extension includes quarterly estimated tax payments which were originally due September 17.

Pennsylvania

Electronic Funds Transfer Limit Decreased: As of July 2, 2012, any single withholding payments of $10,000 or more, previously $20,000 or more,  must be submitted via electronic funds transfer (EFT).

Rhode Island

Amnesty Program for State Taxes: From September 2, 2012 to November 15, 2012, an amnesty program for delinquencies is being offered on most state taxes; including income,  withholding and unemployment taxes. The Department of Taxation is erasing all related penalties and decreasing the corresponding interest rate by 25%.

Washington

Paid Sick Leave Required in Seattle: As of September 1, 2012, employers located in Seattle will be required to offer their employees paid sick leave. The amount required is based on the size of the company.

Wisconsin

Unemployment Insurance Assessment: The Department of Workforce announced that they will be issuing a Special Assessment for Interest for employers to pay back the loans the state took out to pay unemployment insurance benefits. The SAI is due September 17, 2012 and may be paid electronically using the state online reporting system, ACH credit or check.

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