Regulatory Analysis
Alabama recently expanded the types of overtime that qualify for an exemption from personal income taxes and withholding. From January 1, 2024 to September 30, 2024, overtime compensation is exempt from Alabama income tax and withholding if it is paid to full-time hourly employees for working more than 40 hours in a week. Beginning October 1, 2024 […]
The IRS recently released its 2024 Publication 1141, the General Rules and Specifications for Substitute Forms W-2 and W-3. Publication 1141 is generally released on an annual basis and gives the requirements of the IRS and the SSA regarding preparation and use of substitute forms for Form W-2 and W-3. Only a few changes were […]
The IRS recently released the 2024 Publication 1179 (General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns). Filers should note that the IRS is removing filer copies and instructions from information returns, as evidenced by many 2024 versions of the 1099 series forms. Additionally, the IRS added an […]
New York State recently announced several upcoming changes to their withholding tax reporting coming in March of 2025. In an effort to reduce errors and increase compliance for employer reporting of employee information, the NYS Tax Department has instituted a streamlining program for withholding tax and wage reporting for forms and web file applications. The […]
Starting September 1, 2024, Minnesota will impose a prepaid wireless 988 fee of $0.12 per transaction for prepaid wireless telecommunication services. This fee will be collected along with the previously established E911 and Telecommunications Access Minnesota (TAM) fees, for a combined $0.95 per transaction for prepaid wireless telecommunication services.
California’s Employment Development Department (EDD) has announced available extensions for filing state payroll records and depositing state payroll taxes for counties affected by disasters. Following Gov. Newsom’s proclamation ending several states of emergency, the EDD has announced those in affected counties may request two-month extensions for filing and payment. The affected counties include Butte, Los […]
The Social Security Administration (SSA) recently released the 2024 versions of the EFW2 (Specifications for Filing Forms W-2 Electronically) and EFW2C (Specifications for Filing Forms W-2c Electronically). Most notably, both specifications include new fields for reporting Medicaid waiver payments that are excluded from gross income. These payments are reported in Box 12 under Code II […]
South Carolina recently updated publication WH-405, its specifications for the state’s batch filing program for quarterly tax returns. This is the first update to the publication since August of 2021. While the specifications themselves remain unchanged, the document contains added information about how to file using the MyDORWAY system rather than the GoAnywhere system which […]
Oklahoma recently passed HB 1955 and SB 1283, exempting the state level sales tax on food and food ingredients. While this exemption applies to state level tax, there is no change to local level taxes (i.e., county, city and district level taxes). This change is to take effect on August 29, 2024. For the purpose […]
New Jersey has approved Assembly Bill 4702 which eliminates the sales and use tax exemption for zero emission vehicles in two phases. Specifically, a special reduced rate of 3.3125% applies from October 2024 through June 2025 and starting on July 1, 2025, tax applies at the standard rate of 6.625%. For more information click here.
In a surprise move, New Jersey has approved Assembly Bill 4702, which repeals the annual sales tax holiday established by P.L.2022, c.21. This means that the tax holiday which was slated to take place from August 24 to September 2 which would have enabled a temporary tax exemption for computers, school computer supplies, school supplies, […]
Starting July 1, 2024, Wyoming will remove the 200 or more separate transactions threshold for establishing economic nexus. Going forward, the sole criterion to establish economic nexus will be whether sellers receive gross revenue from sales of more than $100,000 into Wyoming for the calendar year or the immediately preceding calendar year. More information can […]
Under H. 887, Vermont will tax prewritten remotely accessed software (i.e. “SaaS”), effective July 1.
The 2024 Massachusetts Sales Tax Holiday will be held on Saturday, August 10 and Sunday, August 11. Most retail items of up to $2,500, purchased in Massachusetts for personal use on these two days, will be exempt from sales tax. For more information click here.
The IRS recently released an update to Form 941-X and the accompanying instructions. Form 941-X is the form for reporting Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund to the IRS. Generally, the form is updated yearly. This year, the updates to the form are in conjunction with the expiration of the social […]
As part of Senate Bill 362, the “Budget Reconciliation and Financing Act of 2024,” Maryland has, among a variety of changes, increased the sales and use tax rate on the sale of electronic devices, including vaping liquid sold in a container that contains more than 5ml of vaping liquid. Effective July 1, 2024, the sales […]
Minnesota’s new Retail Delivery Fee, the “Road Improvement and Food Delivery Fee,” takes effect July 1, 2024. Retailers will be subject to a $0.50 fee on certain transactions that are $100 or more and involve a “retail delivery” in Minnesota. This includes retail deliveries of taxable tangible goods, as well as retail deliveries of clothing. […]
The North Dakota Office of State Tax Commissioner recently announced local tax changes effective July 1, 2024. Such changes include a sales tax rate increase in the City of Mapleton and removal of the maximum tax cap, as well as a sales tax rate increase in the City of Rolla. More information may be found […]