New Jersey employers can breathe a sigh of relief, as Governor Christie has announced that new fiscal management practices have brought New Jersey’s Unemployment Insurance Trust Fund into solvency for the first time since 2009. This spares businesses from a drastic tax surcharge, as Federal Unemployment Tax (FUTA) was set to increase from the base rate of 0.6% ($42 maximum per employee) to 1.5% ($105 maximum per employee). The surcharge is imposed when a state has borrowed from the Federal Unemployment Trust Fund and increases each year. In 2012, NJ employers paid 1.2% due to the surcharge ($84 maximum per employee). By repaying the loan to the Feds, employers will not be subject to this surcharge on their 2013 FUTA wages and will only pay the base rate of 0.6% ($42 maximum per employee).
Archive for the 'Payroll Taxes' Category
Beginning 2012, employers no longer receive an annual paper Notice of Employer Contribution Rates. Instead, the notice is now accessible through the Tax Web Enabled System (TWES). As a result of this change, it’s urgent that you check your TWES account as soon as possible.
New York Attorney General Eric Schneiderman has launched an investigation into companies that pay hourly employees by depositing payroll onto pre-paid cards. Why the concern? Payroll cards, like debit cards, typically have fees associated with inquiries, card replacement, ATM withdrawals, or inactivity. Schneiderman’s concern is that the fees associated with these cards may be insufficiently disclosed or excessive and that the fees reduce employees’ take home pay. Payroll cards can raise a host of legal issues for the employer as well.
What is the Flint assessment? The NJ DOL borrowed money from the federal government to pay Unemployment Insurance Benefits. NJ law requires the government to pass on the interest costs of the loan to NJ employers. Is this something new? It’s comparatively new. This is the third year of the assessment. How much is it? [...]
It’s not uncommon for one’s spouse to work in the family business, whether as office manager or in some other capacity. Let’s assume that Dr. Sally Surgeon owns a medical practice. Her husband, Josh, is in charge of all IT operations and billing. Is it worthwhile for both spouses to receive a salary? At first [...]
Beginning May 7, 2013, employers must use a new and revised version of the Employment Eligibility Verification Form I-9 for new hires (employees who do not require re-verification do not need a new form). Form I-9 has been expanded from one page into two, and has several revisions including additional data fields and improved instructions.
Unless NJ repays the loan in 2013, the penalty tax will increase again to 0.9% for 2013. You might want to budget for this in your April, July and October 2013 FUTA payments.
In 2011 the FUTA rate on New Jersey wages was 0.9% on wages up to $7,000. Since New Jersey has not repaid its loan from Uncle Sam; the rate increases to 1.2% retroactively as of January 1, 2012, and will be capped at $84 per employee for 2012.
In the aftermath of Hurricane Sandy, the IRS have taken action to aid those affected by the storm. It has postponed various tax filing and payment deadlines.
As a result of the difficulties faced by taxpayers in the aftermath of Hurricane Sandy, the State of New Jersey has announced that filing deadlines will be extended for returns and payments that would have been due October 30 and 31. The new deadline will be November 7, 2012.