Payroll Today

With the exception of five states, state tax withholding applies to nonresidents who are physically present and earning wages in your state. Instead, you withhold for your remote employee’s state. Apparently this concept eluded an administrative law judge in Utah, who denied a tax refund to a nonresident who worked for a Utah employer during 2020.
Your W-2s are due to the Social Security Administration in six days! And although the SSA’s AccuWage Online app can pick up a lot of errors before you e-file, it can’t pick up items you inadvertently omitted.
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Departing employees who have small vested amounts in their 401(k) accounts present you with special headaches if they leave those small account balances behind. SECURE 2.0, the giant pension bill Congress passed last month, may have a solution to make you and your former employees happy—a prohibited transaction exemption for 401(k) plans using auto-portability services.
Raises for federal contractors, reissued Pub. 1220, comments on noncompete regs and more.
The 2023 1040 tax-filing season starts next Monday and ends April 18 (a three-day reprieve for extreme procrastinators). The IRS has been able to shovel out of its paperwork mountain, according to the National Taxpayer Advocate’s 2022 report to Congress, but it’s not done. And because it’s not done, employees may experience delays in receiving their tax refunds, regardless of how they file.
Even if you’ve e-filed your W-2s before, it’s still a good idea to review the Social Security Administration’s Wage File Upload Tutorial for 2022 W-2s. The SSA also has an infographic and a video you might find useful. This tutorial is for W-2s e-filers who format their files according to the SSA’s EFW2 file formatting specs.
If you didn’t get your 2021 tax refund until November because you filed a paper 1040, you’re not alone. The IRS was tardy because it was still clearing up the mountain of pandemic-related paper forms. In performance review terms, it definitely gets a Needs to do better.
The FTC’s noncompete regulations, working outside in winter and more.
The DOL and the IRS signed a new MOU last month, again formalizing each agency’s cooperation in worker classification issues.