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Monthly Archives / August 2018

  • Aug 12 / 2018
What's New

IRS Releases Draft of 2019 Form W-4

APA’s July 2018 edition of Compliance TV covers the IRS’s release of a draft of the 2019 Form W-4, news on a potential increase on E-filing returns, and the announcement that New Jersey will now require paid sick leave.

Please refer to:  Compliance TV


  • Aug 12 / 2018
What's New

DOL Updates Potential FUTA Credit Reduction State and Territory for 2018

The U.S. Department of Labor (DOL) has updated its list of potential FUTA credit reduction states for 2018. While California and the Virgin Islands are both listed, the Virgin Islands might be the only state/territory subject to a FUTA credit reduction for 2018. The 2018 determination will be made after November 10, 2018 [DOL, Potential 2018 Federal Unemployment Tax Act (FUTA) Credit Reductions, rev. 7-18-18].

California and the Virgin islands were subject to a credit reduction for 2017. For 2018, the total credit reduction for California could be 2.4% and for the Virgin Islands it could be 3.7% or 2.4% if the Benefit Cost Rate (BCR) add-on is waived.

Outstanding FUA Loans

If states have outstanding Federal Unemployment Account (FUA) loans on January 1 of two consecutive years and have not paid off the balance by November 10, they are subject to a credit reduction for state payments on their Federal Unemployment Tax rate until the balance has been paid off. California paid its FUA loans earlier this year, and if it does not take out additional loans by the November 10, 2018, deadline, it will not be a credit reduction state for 2018.

Waiver of Additional Add-ons

Once a state has had outstanding FUA loans for several years, additional types of credit reduction might also be added. States may apply to the DOL for a waiver of the BCR add-on. Both California and the Virgin Islands have applied for the waiver.

By APA Staff

  • Aug 12 / 2018
What's New

Multi-State Taxation

The APA is part of the Mobile Workforce Coalition, a group that is pushing for passage of the Mobile Workforce State Income Tax Simplification Act (H.R. 1393, S. 540), a bill with bipartisan support in the House and Senate. These bills would establish a 30-day threshold before a state could impose tax on a nonresident employee’s wages. The legislation has been introduced a number of times since 2006. As part of APA’s support, it has submitted statements and urged lawmakers to vote for its passage.


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  • Aug 05 / 2018
What's New

California Supreme Court Rejects De Minimis Doctrine for Compensable Time Claims

The CaliforniaSupreme Court determined that the federal Fair Labor Standards Act’s (FLSA’s) de minimisdoctrine does not apply to claims for unpaid wages under California’s wage and hour statutes or regulations, including Industrial Welfare Commission wage orders. The court determined that the relevant wage order and statutes do not permit application of the de minimisrule when the employer required the employee to work “off the clock” several minutes per shift [Troester v. Starbucks Corp., No. S234969 (Calif., 7-26-18)].

Federal courts have applied the de minimisdoctrine to excuse the payment of wages for small amounts of otherwise compensable time upon a showing that the time worked by an employee after regular working hours is so insignificant that it cannot be definitively measured or is administratively difficult to record (29 C.F.R. §785.47).

In the recent case, Starbucks’ timekeeping computer software required the nonmanagerial shift supervisor to clock out before performing certain store closing tasks, including initiating the software’s “close store procedure” on a separate computer terminal in the back office, which transmitted daily sales, profit and loss, and store inventory data to headquarters.

According to the state supreme court, the de minimis principle does not apply when an employer regularly requires its employees to work minutes off the clock on a regular basis or as a regular feature of the job. It also stated that it should not be applied solely because it is difficult to keep track of time worked, especially as technological advances enable employees to track and register their work time via smartphones, tablets, or other devices.

By: APA Staff

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