2014 Disability Changes:
New Jersey employee disability rate change to .38%
The Department of Revenue released transportation tax rates for 2014. Effective Jan. 1, 2014, the Tri-Met tax rate is 0.7237 percent and the Lane County Mass Transit District tax rate is 0.70 percent.
FUTA Credit Reductions for 2013 Are Issued (11/12/13)
Thirteen states and the U.S. Virgin Islands have Federal Unemployment Tax Act credit reductions for 2013, the Labor Department said Nov. 12. For 2012, 18 states and the U.S. Virgin Islands had FUTA credit reductions.
Delaware has a 0.6 percent credit reduction that requires employers to pay up to $42 in additional FUTA costs for each employee for 2013.
A credit reduction of 0.9 percent, increasing FUTA costs by up to $63 for each employee for 2013, applies for employers in Arkansas, California, Connecticut, Georgia, Kentucky, Missouri, New York, North Carolina, Ohio, Rhode Island and Wisconsin.
Indiana has a credit reduction of 1.2 percent for 2013 that increases FUTA costs by up to $84 for each employee. However, the state prevented an extra credit reduction, the FUTA benefit cost rate add-on, that would have required employers to pay up to $98 for each employee in addition to the extra charge of up to $84 for each employee. Indiana prevented the benefit cost rate add-on with a fifth-year waiver application that was approved by the Labor Department.
The U.S. Virgin Islands has a credit reduction of 0.9 percent for 2013 plus an extra credit reduction of 0.3 percent. This extra reduction, the 2.7 add-on, can apply for jurisdictions that do not achieve solvency goals established by the Labor Department.
Five states that had credit reductions in 2012 repaid their federal unemployment loan balances and do not have credit reductions for 2013: Arizona, Florida, Nevada, New Jersey and Vermont.
South Carolina, despite its federal unemployment loan balance, does not have a credit reduction for 2013 because its credit reduction avoidance application was approved by the Labor Department.
2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations Resume
The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.
The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.
Ohio: The state minimum hourly wage is to increase to $7.95 from $7.85 and to $3.98 from $3.93 for tipped employees, effective Jan. 1, 2014, the state Department of Commerce said Oct. 10. The increased minimum wage would apply to employers with gross receipts of more than $292,000 a year.
New Jersey: is NOT a FUTA credit reduction state for 2013.
Missouri: will be a FUTA credit reduction state for 2013. The .9 per cent will increase employer costs by $63.00 per employee.
California: withholding tables will change for 2014.
Maryland: local income taxes for Caroline County, Carroll County and Charles County will change in 2014.
Kentucky: standard deduction will increase from $2360.00 to $2400.00 for 2014.
Arizona: Minimum wage will increase from $7.80 to $7.90 in 2014.
Florida: Minimum wage will increase from $7.79 to $7.93 and for tipped employees from $4.77 to $4.91.
The Old-Age, Survivors, and Disability Insurance
(OASDI) taxable wage base for 2014 increases to $117,000 from $113,700 in 2013, the Social Security Administration said Oct. 30.
The maximum 2014 OASDI portion of the Federal Insurance Contributions Act tax payable by each employee is $7,254, or 6.2 percent of the wage base. Employers match the employee amount with an equal contribution.
Of the estimated 165 million workers who are to pay Social Security taxes in 2014, about 10 million would pay higher taxes because of the higher taxable wage base, SSA said.
For the Medicare (HI) portion of the FICA taxes, there is no wage base and all wages earned are subject to the HI tax, which also is paid by employers and employees. Each pays at a 1.45 percent rate, although employees pay an additional 0.9 percent on wages greater than $200,000.
The agency also said a 1.5 percent cost-of-living increase amount is to take effect, affecting several thresholds for benefits and coverage. The Social Security tax annual coverage threshold amount for domestic employees for 2014 increases to $1,900 and remains at $1,600 for election workers.Severance Payments Subject to FICA Taxation, Supreme Court Rules
Severance payments made to involuntarily terminated workers are wages subject to Federal Insurance Contribution Act taxes, the Supreme Court ruled, reversing a ruling of the Sixth Circuit Court of Appeals (United States v. Quality Stores Inc.,U.S., No. 12-14083/25/14).
In the case, Quality Stores claimed that the payments were not subject to FICA taxes because they were neither make-whole compensation nor wages for services performed. The government claimed the payments were subject to FICA taxes because they were remuneration for employee services.
The Internal Revenue Service claimed that more than $1 billion in contested tax liabilities were at stake in the case.
Labor Department Directed to Update Overtime Rules
A presidential memorandum, signed March 13 by President Barack Obama, instructs Labor Secretary, Thomas E. Perez, to update regulations regarding who qualifies for overtime coverage.
The memorandum directs Perez to consider how regulations may be revised to ensure they are in keeping with the intent of the Fair Labor Standards Act, address the changing nature of the American workplace and simplify existing overtime rules to be easier for workers and businesses to understand and apply, according to a March 13 White House fact sheet.
The FLSA's overtime provisions require the employees receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. The Labor Department's salary-basis threshold of $455 a week is a critical factor that helps determine if a worker can be considered exempt from overtime pay, and there are duties tests that also must be met for work to be classified as exempt from overtime pay. The regulations were last revised In 2004, when the Bush administration set the minimum qualifying salary level at $455 a week and changed some of the requisite job duties.
The state delayed the start of its suspension on the use of payroll cards to Sept. 1, 2014, the Department Labor and Industrial Relations said April 3 in an amended notice. Legislation (H.B. 1814) pending in the state legislature is to determine whether pay cards would to be permanently banned or authorized with restrictions, the department said.
The hourly minimum wage rates and the daily overtime wage rates that take effect July 1, 2014, are to remain unchanged from the 2013 rates
The deadline for first-quarter unemployment tax payments was extended to May 30 from April 30 as the state legislature works to finalize UI tax rates for 2014, the state Executive Office of Labor and Workforce Development said March 31.
First-quarter wage data are to be submitted via UI Online by April 30.
Unemployment tax rates for 2014 would be determined under Schedule G if the legislature does not pass legislation that would leave Schedule E in effect for the fifth consecutive year, the labor and workforce office said. Rates would range from 1.58 percent to 15.4 percent under Schedule G, while rates under Schedule E range from 1.26 percent to 12.27 percent.
Notices of unemployment tax rates for 2014 are to be sent to employers by May 20, the office said.
Effective July 1, 2014, the living-wage rate in San Diego for service contractors, employers receiving city financial assistance and city-facility employers is to increase to $14.17 an hour from $13.99 an hour for employers who do not offer health benefits. For employers who offer health benefits, the living-wage rate increases to $11.80 an hour from $11.65 an hour. The rates are in effect to June 30, 2015.