All posts by Support

FUTA credit reductions for 2014

Federal News, ,

IRS has announce the states that will be subject to the credit reduction for 2014.

A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. A reduction in the usual credit against the full FUTA tax rate means that employers paying wages subject to UI tax in those states will owe a greater amount of tax.

California (1.2%), Connecticut (1.7%), Indiana (1.5%), Kentucky (1.2%), New York (1.2%), North Carolina (1.2%), Ohio (1.2%), and the Virgin Islands (1.2%).

Please print out the latest for 940 from irs.gov for complete instructions

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/FUTA-Credit-Reduction

Minimum wage increases for 2014

State News,

On Jan. 1, the minimum wage in 13 states will increase to these amounts.

State New minimum wage
Arizona $7.90
Colorado $8.00
Connecticut $8.70
Florida $7.93
Missouri $7.50
Montana $7.90
New Jersey $8.25
New York $8.00
Ohio $7.95
Oregon $9.10
Rhode Island $8.00
Vermont $8.73
Washington $9.32

http://www.usatoday.com/story/money/business/2013/12/29/states-raising-minimum-wage/4221773/

NC Employers Must Collect New Form NC-4 EZs or NC-4s

State News

The North Carolina General Assembly recently enacted the Tax Simplification and Reduction Act which becomes effective for taxable years beginning on or after January 1, 2014. Under this new law, all taxpayers will pay a lower rate and be granted a higher standard deduction. Taxpayers may no longer claim a personal exemption for themselves, their spouse, children, or any other qualifying dependents. Additionally, many deductions and tax credits that impact North Carolina withholding tax are no longer available for tax years beginning on or after January 1

As a result of this Act, every employer must have all employees provide a new Employee’s Withholding Allowance Certificate, either Form NC-4 EZ or Form NC-4.

 

  • The new form must be completed by the employee and provided to the employer so the correct amount of State income tax is withheld for any payment periods beginning on or after January 1, 2014.

 

Likewise, all recipients of pension or annuity payments must complete and provide to their payer a new Withholding Certificate for Pension or Annuity Payments, Form NC-4P ,(Revised 11/25/13) in order to withhold the correct amount of State income tax for any pension payment periods beginning on or after January 1, 2014.

 

NCDOR will notify employers and pension payers of the new requirement by mail.

 

 

Questions

Questions: employers or pension payers with questions may call this special help number: 1-877-252-4487. The number will be available until Feb. 28, 2014.