Payroll Updates


PAYROLL CURRENTLY Issue No. 9 is now available.

The current issue, which is dated September 1, 2017, includes coverage of the following payroll compliance developments: 

EEO-1 Pay Data Collection Blocked. On August 29, the Office of Management and Budget sent a memo to the Equal Employment Opportunity Commission stopping the revisions to the Employer Information Report (EEO-1) that would have required certain employers to provide summary pay data. 

Federal Per Diem Rates Updated for Fiscal Year 2018. The General Services Administration has announced the per diem travel reimbursement rates for FY 2018 – effective for travel on or after October 1, 2017. Per Diem Bulletin 18-1 is available on the APA website. 

Reminder: Employers Must Use Revised Form I-9 by September 18. Employers must use only the revised Form I-9,Employment Eligibility Verification, which is coded as Rev. 07/17/17 N, by September 18. The new form and instructions are available on the APA website. 

DOL to Take Next Step in Overtime Rule Case. Oral arguments have been tentatively scheduled for October 2 in the case involving the U.S. Department of Labor's (DOL) overtime rule. 

Phase 2 of Same-Day ACH Transactions Begins September 15. Beginning September 15, ACH debit entries will be available for same-day ACH settlement. 

APA Comments on CFPB Amendments to Prepaid Accounts Rule. See "Inside Washington" for September. 

SIFL Rates for 2nd Half of 2017 Announced. 

Employer Did Not Violate FLSA by Retaining Tips. Marlow v. The New Food Guy, Inc. 

IRS Offers Guidance on Tax Credit for Increasing Research Activity. The IRS has issued a memorandum explaining how qualified small businesses may apply the tax credit for increasing research activities against their payroll tax liability. IRS Memorandum No. AM2017-003. 

DOL Updates Fringe Benefit Rate for Federal Contractors. The U.S. Department of Labor (DOL) has updated the prevailing health and welfare fringe benefits amount as required under the McNamara-O'Hara Service Contract Act. All Agency Memorandum No. 225. 

Three More States Join E-Verify RIDE Program. U.S. Citizenship and Immigration Services (USCIS) announced that Arizona, Maryland, and Wyoming have agreed to participate in the Records and Information from DMVs for E-Verify (RIDE) program. 

APA Offers State Retirement Plan Recommendations. See "Inside Washington" for September. 

Payroll Solutions. Read a Q&A about how research grants that are not part of the National Research Service Award program should be taxed. 

USCIS Redesigns E-Verify Participation Poster. U.S. Citizenship and Immigration Services (USCIS) released a redesigned E-Verify participation poster that employers must display if they participate in the program. 

APA Offers Fall Forum to Increase Leadership Skills. 

IRS Begins Sending Notices for Expiring ITINs. In early August, the IRS began sending CP-48 notices to more than 1 million individuals whose Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2017. IR-2017-128. 

IRS Reminds Employers to Print Forms in 'Actual Size.' Employers that print out and send PDFs of certain forms to the IRS should print them to "actual size," rather than "shrink to fit." 

Capitol Hill Update. 

PEO Was Not FLSA Joint Employer of Pest Control Employees. Coldwell v. RiteCorp Environmental Property Solutions

APA Members Assist IRS in Warning Employers to Watch for Email Phishing Schemes. See "Inside Washington" for September. 

TIGTA Report Faults IRS Procedures for Not Addressing Billions of Dollars in Underreported Employment Taxes.The Treasury Inspector General for Tax Administration (TIGTA) has issued a report stating that the IRS has not investigated billions of dollars in potential underreported employment taxes because most discrepancy cases in the IRS's Combined Annual Wage Reporting Program are not reviewed. TIGTA Audit Report No. 2017-40-038. 

IRS Issues Guidance on Treatment of Fixed Indemnity Health Plans. The IRS has provided guidance on the tax treatment of benefits paid by fixed indemnity health plans. IRS Memorandum 201703013. 

Wage and Hour Roundup. 

IRS Releases Fact Sheet on Worker Classification. The IRS has released a Fact Sheet to remind small businesses of the importance of understanding and correctly applying the rules for classifying a worker as an employee or an independent contractor. FS-2017-09. 

Instructors at English-Language School Were FLSA-Exempt Teachers. Fernandez v. Zoni Centers, Inc. 

Vermont Starts Participating in Lump Sum Reporting. The Office of Child Support Enforcement has updated its map on its website to reflect that Vermont is now participating in lump sum reporting. 

State and Local News.
  • Guam – child support state disbursement unit address changed
• Illinois – additional villages opt out of Cook County minimum wage, PSL ordinances
• Maine – withholding tables revised, supplemental wage tax rate unchanged
• New Hampshire – tip pool sharing permitted
• New Jersey – UI, TDI, and FLI taxable wage base increased
• New York – paid family leave rules began
• North Carolina – worker classification commission duties established
• Oregon – IRC references updated; predictive scheduling requirements established
• Rhode Island – minimum wage, tip credit increased
• Texas – overtime and compensatory pay for public safety officers increased; wage deduction rules for temporary workers updated
• Washington – paid family and medical leave insurance defined

Also available are an Index for 2017, the latest Inside Washington, and the APA's Monthly Calendar, offering compliance and professional development information. 

Get the details (with checklists!) on how to prepare for a smooth year-end with APA's Preparing for Year-End and 2018courses. Choose from PayrollAdvanced PayrollAccounts Payable/DisbursementsGovernment/Public Sector, andCanadian Payroll