TaxQuestionsRate season has begun with Vermont and New Jersey issuing their fiscal year rates.   Vermont, New Jersey, Tennessee, and New Hampshire.   New Jersey offers a voluntary contribution option to lower the 2016 rate if the Voluntary Contribution amount is submitted within thirty days of the date on the rate notice.   New Jersey usually mails their rates in three batches with different dates.

Rhode Island will be allowing employers to make a voluntary contribution to lower their 2016 tax rates.     SB 813 was signed by the governor on July 10, 2015. This makes a total of twenty-six states who allow the voluntary contribution option. The concept behind the voluntary contribution is to pay monies in advance to obtain a lower rate. An employer needs to use their current or projected taxable payroll to multiply by the rate reduction and then subtract the amount it took to buy down the rate.   Corporate Cost Control provides all their employers with our recommendations of whether the voluntary contribution is profitable or not profitable.

Michigan has reduced their taxable wage base to $9,000 effective July 1, 2015.   The reduction does not include the first two quarters of 2015. If an employee met the $9500 wage base within the first two quarters, a refund is not allowable for the decreased taxable wage base effective July 1, 2015. Michigan has announced that the taxable wage base will remain at $9000 for 2016.

Rate table 6 will be in place from July 1 – December 31, 2015. This is a decrease from Rate Table 5 that was in effect from January 1 – June 30, 2015.   A decrease in the taxable wage base may be feasible for 2016 depending on which benchmark the state reviews for their trust fund balance.   Tennessee rates should be issued at the latest by mid –September.

Employers with 250 or more employees are currently required to file electronically in California.   A Bill, waiting to be approved, would require all employers with ten employees or more to file electronically effective January 1, 2018.

Illinois enacted legislation requiring all employers with 25 employees or more to file electronically beginning July 1, 2014. The legislation was enacted to detect fraud and abuse in the state’s Medicaid program.   Illinois has agreed to waive interest and penalties if the employer was confused about the reporting requirements and will waive up to two months of penalties.   Please contact your tax analyst if you need assistance with this process.

A few more states have issued released their taxable wage base for 2016. The state of Missouri will remain at $13,000.   Iowa will increase their taxable wage base to $28,300 for 2016.  We will be issuing a 2016 expected mail date and a wage base listing by October. Let your tax analyst know if you need a preliminary wage base list. We can send updates as we receive them.

 

 

 


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