NPRC members met with officials from the New Jersey Division of Revenue and the Department of Labor on December 3, 2001. Here's a quick recap.

The letter on a payroll tax holiday signed by NPRC and others made an article in the November 20, 2001 edition of "National Journal's CongressDaily," a Washington DC daily publication for the Capitol Hill, government relations and lobbying community.

The IRS provides guidance as to how to report 'catch-up' elective deferral contributions on Forms W-2, in accordance with the recent TGTRRA tax legislation.

Disaster relief for e-filed returns

There is a late breaking opportunity to claim disaster relief. If you've already e-Filed returns for clients, obviously you were not able to write in red on the return. I have been advised that a list of clients subject to disaster relief can be accepted and we will input the needed codes to prevent penalty assessment. If you've already filed on paper and written "September 11 Terrorist Attack" in red to claim disaster relief, we will catch those returns and take care of them. If you want to send us a list of clients who fit the requirements for disaster relief, please FAX the list to:
IRS, Attn: Nancy Harmon
Cincinnati Service Center
(859) 669-7867.

The list must have the EIN and type of tax return for which relief is sought.

Courtesy of Paul Sobert of the IRS

Utah's Withholding Tax Guide was just updated with the following changes. They will be mailed to all current Utah withholding accounts in mid-December. All changes become effective Jan. 1, 2002.

  • Withholding schedules and tables for Utah income tax have been adjusted.
  • Household employers who file federal Schedule H on an annual basis or employers who withhold less than $1,000 per year may elect to pay Utah withholding annually.
  • Employers who are required to file W-2s electronically with the IRS must also file W-2s electronically with Utah.
  • The interest rate assessed on unpaid balances for calendar year 2002 is 6 percent.

On October 10, NPRC wrote to Congress and the Treasury to express concerns with tax-relief proposals being considered as part of an economic stimulus package. Some federal payroll tax and income tax relief proposals would have created significant administrative burdens for U.S. employers and payroll service providers.

Maine issued a warning to noncompliant payroll processing firms: All payments must be made electronically.

New Louisiana Department of Labor legislation requires wage reports to be rounded.