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| January, 2010 | ||
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| Emerging Electronic Filing Issues: State Calculation of UI Taxable Wages | ||
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| NPRC members recently formed a study group with several State Workforce Agency wage and tax reporting experts, as well as the National Association of State Workforce Agencies and the US Department of Labor, to examine how states are handling taxable wage calculations within new electronic filing systems, how these systems address wages paid in other states and related issues. The study group produced a paper that describes the experience of several states, and discusses alternatives and pros and cons. | ||
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| Military Spouses Residency Relief Act | ||
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| The Military Spouses Residency Relief Act was signed into law on November 11th but is retroactive to January 2009. It prohibits states from taxing income earned by military spouses who move into a state to be with the service member. In view of the potential impact to year-end if states announce diverse W-2 reporting requirements, NPRC joined with the APA and the Federation of Tax Administrators to recommend a consistent set of state measures, including acceptance of W-2s showing 2009 wages and withholding despite the retroactive effective date. | ||
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| August, 2009 | ||
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| New Taxpayer Information Validation Program Implementation Guide | ||
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| A key element and best practice in the newest electronic filing systems is a means to improve the accuracy of returns and payments. Payroll service firms electronically send critical taxpayer entity information such as Employer Identification numbers, business names, tax rates, assigned filing schedules, and other variables that affect the processing of tax returns. | ||
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| Such programs serve to verify or correct taxpayer information before a tax return or payment becomes due, minimizing errors in tax return and payment processing. NPRC has prepared an implementation guide to explain how these programs work and to establish standard data formats that can be used by all states and service providers. | ||
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| July, 2009 | ||
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| NPRC Recommendations for State Employer Withholding Electronic Filing Systems | ||
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| NPRC has developed separate design recommendations for state electronic filing systems for withholding taxes. Included are suggestions for technical standards, program features, pre-filing taxpayer information verification programs, enrollment requirements, edits appropriate to employment taxes and more. | ||
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| Revised March, 2009 | ||
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| NPRC Presents Comprehensive Recommendations for State Electronic Filing Systems | ||
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| NPRC members presented comprehensive design recommendations for state electronic filing systems to state tax officials at the annual Federation of Tax Administrators Technology conference, addressing technical standards and general program features, such as pre-filing applications designed to improve data accuracy. There is a separate presentation, and detailed recommendations paper. | ||
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| September, 2006 | ||
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| How to Verify State Witholding Tax Payments | ||
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| Payroll managers should, as a best practice to protect company assets, verify tax payments made on the company's behalf by any third party. The IRS reminds us that: | ||
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| “the employer is ultimately responsible for payment of federal tax liabilities. Even though (a) third party is making the deposits, the employer is the responsible party. Employers should… use EFTPS (Electronic Federal Tax Payment System), to confirm payments made on their behalf… electronically 24 hours a day, 7 days a week through the Internet, or by phone. Enroll online at http://www.eftps.gov, or call 800-555-4477 for an enrollment form.” – SSA/IRS Reporter, Spring 2006 | ||
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| State tax authorities generally offer similar means to verify tax payments. Go to: How to Verify State Tax Payments See also: How to Verify State Unemployment Tax Payments |
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| January, 2006 | ||
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| Maine legislation to regulate payroll service organizations | ||
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| Maine has led the states in enacting legislation to regulate payroll service organizations to improve the safety of client funds. This is an issue not easily addressed, and an area in which taking action, however well-intentioned, may actually increase the risks to businesses. For details, view the NPRC testimony over the past three years: | ||
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March 19, 2004, concerning LD 1843 – An Act to Require Surety Bonding by Payroll Processing Companies | |
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February 1, 2005, concerning LD 58 – An Act to Support Payroll Processors, and LD 208 – An Act to Lower the Surety Bond Requirement for Payroll Processors | |
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March 22, 2005, concerning LD 633 – An Act to Relieve Small Payroll Companies From Excessive Regulation | |
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January 25, 2006, concerning LD 1878 – An Act to Protect Small Payroll Processors | |
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Last updated January 08, 2010