American Payroll Association
Hampton Roads 
Serving the Payroll Professional of "Hampton Roads"
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Welcome to the home page for the Hampton Roads Chapter of the American Payroll Association. This site is designed to provide all area payroll professions with valuable information about our events, sponsors, and other miscellaneous chapter information.
Sharon Blackman, CPP.
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2012 Membership Registration is Open
VSPC
2010 Payroll Professional of the Year
Employer Sponsored Health Coverage Form W-2
On March 29, 2011, the IRS released Notice 2011-28. Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage.
The notice contains information on how to report, determine the cost of the coverage and what coverage to include or exclude. Click here for detail information on Notice 2011-28.
For more latest Federal and state news, click here.
Federal Rates
SSA wagebase $110,100
Employee SS rate 4.2% (jan-Feb until further notice)
Employer SS rate unchanged 6.2%
Medicare rate 1.45%
Standard business mileage rate .555 cents per mile More detail....
Obama Signs bill repealing 2012 1099 requirements
Legislation recently repealed the extended requirements that business owners file
Form 1099 if they had paid more than $600 per year to any vendor for goods and services. Click here for more information.
In The News:
IRS
HRAPA
Business and Education Meeting
February 9, 2012
8:00 AM - 11:00 AM
Norfolk International Airport Conference Ct
2200 Norview Avenue
Norfolk, VA 23518
$25.00 Member Registration
$40.00 Non-Member Registration
Speakers:
Jeff Byas
Topic: "Making Sense of Retirement"
Stephanie Salavejus, CPP
Topic: Payroll Fraud
Registration is open for February 9, 2012 breakfast meeting. Deadline for registration is February 3, 2012.
IRS on YouTube
The IRS is reaching out to the public by providing beneficial tips on YouTube. Please visit the links below for payroll related items and more. .
Watch these and many more on the IRS's YouTubeChannel
2011 VSPC
Payroll Professional of the Year
Virginia Employers- "Credit Reduction"
To maintain unemployment insurance programs, Virginia and 19 other states plus the Virgin Islands borrowed money from the federal government in 2009 or earlier. In November 2011, they did not repay the money they borrowed from the federal government to pay unemployment benefits.
The employers in th credit reduction state must adjust their unemployment tax liability on their 2011Form 940. The 2011 Form 940 Schedule A list the appropriate state abbreviation and reduction rate. Don't let the name fool you. This means the employer in the state of Virginia will have to pay an extra .3% on their annual taxable unemployment taxable income applied to 4th quarter payments. Below is a list of the states and their reduction rate.
States Reduction .003 Rate
Arkansas, California, Connecticut, Florida,
Georgia, Illinois, Kentucky, Minnesota, Missouri,
Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Virginia,
Virgin Islands & Wisconsin
Indiana .006 & Michigan .009 reduction rate.
More Details available on the Form 940 instructions.
Extension of the FUTA Surtax
The Federal Unemployment Tax Act (FUTA) surtax of .2 % expired as of June 30, 2011. In the early 1970's 1976 the .2 percent surtax was implemented to repay the Federal Government loans that covered a funding shortfall due to high unemployment rates and high unemployment insurance claims in the 1970's.
Congress did not act on extending the 0.2 percent rate so the 3rd and 4th quarter general FUTA Tax rate be will be based on 6 percent. The employer if applicable would be calculating their taxes on .60 % instead of .80 %.
The IRS made adjustments to the 2011 Form 940. It accommodates the two different tax rates. There are two separate lines to reflect 6.2 percent rate from January to June and 6 percent from July to December. Employers may have a drop in the FUTA liability except those in "credit-reduction states.
Upcoming Event
Payroll Tax Cut Extended
Congress temporary extended the two percentage point payroll tax cut for employees, paid through Feb. 29, 2012. This continues the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages .
Employers are required to implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers must make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.
Workers should not need to make any additional action because the employers and payroll companies will handle the withholding changes.
Follow the IRS on News Media to track changes and more update information. The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions.
APA Payroll Webinar
EVENT DETAILS:
Date: Friday, December 30
Time: 1:00 p.m. - 2:00 p.m. ET
RECERTIFICATION
CREDIT HOURS:
Earn 1 RCH for attending this webinar.
Part-Time Payroll Assist position . More details...
