California Enacting Electronic Filing Requirement for All Employers

The state legislature has passed AB 1245, a bill that requires California employers of 10 or more employees to submit quarterly payroll tax returns and pay the associated payroll taxes electronically over the California Employment Development Department website starting in 2017. The bill also requires all employers to file and pay electronically effective January 1, 2018. The bill awaits the governor signature and he is expected to sign it.

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MI SUI Agency Has Name Change

As of March 16, 2015, the Michigan Unemployment Insurance Agency (UIA) has become part of the newly created Talent Investment Agency (TIA) under the umbrella of the newly-created Department of Talent and Economic Development.  Because of this change, the UIA is no longer housed within the Department of Licensing and Regulatory Affairs.  All contact numbers are the same.

MA Issues SUI Wage Base and EMAC Rates for 2015

Massachusetts  2015 SUI taxable wage base increased to $15,000, up from $14,000 for 2014

Mailing of 2015 rate notices

The Massachusetts Department of Labor and Workforce Development issued the 2015 SUI tax rates to employers on January 31, 2015.  The protest deadline is June 20, 2015. Employers that disagree with the employer-specific figures used in computing their 2015 SUI tax rate may request a review in writing by June 20, 2015.

Employer Medical Assistance Contribution (EMAC) rates for 2015

Employers that paid the Employer Medical Assistance Contribution (EMAC) at a rate of 0.24% or 0.36% for calendar year 2014 will pay at a rate of 0.34% for 2015 up to a taxable wage base of $15,000 per employee.

 

NJ Getting Tough on Classifying Contractors

As a result of a recent New Jersey Supreme Court ruling, New Jersey businesses will be subject to much stricter scrutiny when it comes to classifying workers as independent contractors.  In the case, Sam Hargrove, et.al.v Sleepy’s LLC, the court concluded that the “ABC” test under the New Jersey Unemployment Compensation Act will be used to determine a worker’s status for claims under both the WPL and WHL and not the FLSA’s economic realities test.

 

NJ ABC Test Worker is Independent Contractor if all of these apply:
A Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact; and
B Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed; and
C Such individual is customarily engaged in an independently established trade, occupation, profession or business.

MI Has a New System but No New Tables

In January 2015, the Michigan Department of Treasury began to process current year SUW tax returns with a new online system.  As a result of this new processing system, there will be changes to the SUW forms and to the way taxpayers can file and make payments for returns in tax year 2015 and beyond. The new bundle of e-services is called Michigan Treasury Online (MTO). Business taxpayers have 24/7 access to their accounts and will be able to file returns electronically, pay SUW tax due in one convenient transaction and make routine account changes.

However, although the income tax withholding rate remains at 4.25% for tax year 2015 but the personal exemption amount changed to $4,000, employers should continue to use the 2014 Michigan income Tax Withholding Tables