Friday 12/02/2016

Important Payroll-Related Changes for Employers

**UPDATE: This post has been updated as of 12/22/16** As we approach year-end, there are a few important updates to filing deadlines and rate changes to keep in mind. Shirley Wu, CPA explains:

 

New filing deadline for forms W-2 and 1099:

Beginning with the 2016 forms (e.g. those filed in 2017), Form W-2 and Form 1099-Misc, for payments reported in box 7, must be filed with the Social Security Administration or IRS, respectively, by January 31, 2017 rather than the prior deadline of February 28 (March 31 if filing electronically). Copies must still be provided to employees and payees by January 31, 2017.

 

New Ohio municipal tax withholding due dates and thresholds:

Monthly filing and payment requirement: an employer is required to file monthly if they have withheld with respect to a municipality more than $2,399 in the immediately preceding calendar year, or more than $200 in any one month in the immediately preceding calendar quarter. The due date for monthly filers is the 15th day of the month following the month withheld.

Quarterly filing and payment requirement: an employer is required to file quarterly if they have withheld with respect to a municipality $2,399 or less in the immediately preceding calendar year, or $200 or less for each month in the immediately preceding calendar quarter. NOTE: Effective September 14, 2016, Senate Bill 172 changed the due date for quarterly filings and payments to the last day of the month following the end of each calendar quarter.

 

2016 Federal Unemployment Tax Act (FUTA) credit reduction:

If you are one of the following two states, you will pay an additional rate on your 2016 Federal Unemployment Tax when you file your Annual Form 940. Please see below for those two states with the Credit Reduction Rate for 2016. The total FUTA rate for the following two states is 2.4% for 2016, which includes the standard rate of 0.6%. All other states employers’ FUTA rate for 2016 is 0.6%. **UPDATE: a previous version of this post listed the 2016 preliminary credit reduction rates. It has since been updated with the final 2016 credit reduction rates.**

State

2016 Credit Reduction Rate

California 2.2%
Virgin Islands 1.9%

 

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