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Monthly Archives / September 2018

  • Sep 09 / 2018
What's New

California Employers Affected by Recent Fires, Storms May Be Eligible for Disaster Relief

August16_18_APAWebImages_StateCaliFires

Employers in the California counties of Lake, Mariposa, Mendocino, Napa, Orange, Riverside, San Diego, Santa Barbara, Shasta, and Siskiyou directly affected by recent fires and those in San Bernardino County directly affected by a recent storm may request up to a 60-day extension of time from the California Employment Development Department (EDD) to file state payroll reports and/or deposit state payroll taxes without penalty or interest.

Written requests for an extension must be received within 60 days of the original delinquent date of the payment or return. For more information on the current state declared disasters, including the starting date for the 60-day extension for each county, go to the EDD website.

By: American Payroll Association

  • Sep 09 / 2018
What's New

IRS Grants Transition Relief for Health Savings Account Contributions

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On April 26, the IRS announced transition relief for employers that sponsored Health Savings Account (HSA) qualified plans for their employees in 2018. The maximum HSA contribution limit for individuals with a family high-deductible health plan (HDHP) remains at the original 2018 level of $6,900 instead of the Tax Cuts and Jobs Act (TCJA) level of $6,850 [Rev. Proc. 2018-27].

Why do employers need relief?

The TCJA changed the Consumer Price Index used to determine inflation adjustments, which resulted in the IRS publishing a revised procedure to account for a lower 2018 maximum HSA contribution limit for individuals with a family HDHP from $6,900 to $6,850 ($50 difference). The change was applied retroactively to January 1, 2018 (see Rev. Proc. 2018-18, 2018-10 IRB 392).

APA along with other stakeholders requested the HSA relief because of unanticipated administrative and financial burdens. The revised IRS procedure includes an explanation on how to treat excess contributions for 2018.

By: American Payroll Association

  • Sep 09 / 2018
What's New

SSA Outlines BSO Upgrades for the 2019 Filing Season and Beyond

On July 5, during the IRS’s payroll industry call, Scott Pederson, a Program Analyst in the Social Security Administration’s (SSA) Office of Electronic Services and Technology, provided an overview of some of the changes that SSA has made to its Business Services Online (BSO) suite of services for the 2019 filing season. He also outlined some of some of the changes that SSA would like to make for future years.

Pederson said that there are internal upgrades that filers may not see and others that will be more visible. One change involves the types of alerts generated by AccuWage Online. There are three types of alerts: critical errors that prevent a W-2 or W-2c wage file from being processed; errors that may not prevent a file from being processed, but should be corrected; and informational alerts. Because the number of alerts is limited to 500, some filers may not receive critical alerts. Pederson said that there will be fewer informational alerts in 2019. He also reminded listeners that the 2018 Form W-2 includes two new codes for Box 12 (Codes FF and GG) that the SSA’s systems are ready to process.

Pederson looked ahead to future BSO upgrades, which could include a new authentication and authorization system. Noting that some of the elements of BSO were designed approximately 20 years ago, he said that SSA is looking to provide a user experience that is “a lot more intuitive,” simple, and less menu-based. Pederson sought feedback from the attendees on the payroll industry call concerning the types of issues they were having with their BSO accounts. SSA will take that feedback into account as it develops the upgrades to its systems.

By: American Payroll Association

  • Sep 09 / 2018
What's New

Employers Must Use Current Standard Child Support Withholding Order

As of August 31, 2018, employers should be using only the revised version of the standard child support withholding order, Income Withholding for Support(IWO), with an expiration date of August 31, 2020. The form is required to be used in all child support cases. It must be used by state child support agencies, courts, tribes, private attorneys, and other entities when ordering or sending notices to withhold. Both the formandinstructionsare available on the APA website.

When the Office of Child Support Enforcement (OCSE) released the revised IWO in 2017, states, tribes, and others were advised to begin using it immediately. Because some entities may have needed additional time to implement use of the revised IWO, employers were directed to continue to honor previous versions of the IWO until August 31, 2018. APA’s Government Relations Task Force (GRTF) Child Support and Other Garnishments Subcommittee has been advised by OCSE’s Employer Services Team that a best practice is to return an old form to the sender.

By: American Payroll Association 8/30/2018

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