American Payroll Association
Hampton Roads 
Serving the Payroll Professional of "Hampton Roads"
Hampton Roads
2011 Newsletters
2010 Form W-2 & W-3
The IRS posted revised Forms W-2 , W-3 and instructions on their website as of April 21st. On the Form W-2, they added a new code for box 12, Code CC for employers to report the amount of wages and tips designated by the payroll tax exemption. They added a new box 12b on the Form W-3 to report the total of Code CC. They also added a new box 12a to report the total deferred compensation amount. Read more detail information on the Form W-2 instructions under What's New.
FEDERAL & STATE NEWS BRIEF/NEWSLETTERS
Virginia State News
Electronically File W-2
Effective January 1, 2011, employers who furnish 150 or more withholding statements to employees for calendar year 2010, must file their Forms W2 electronically. Employers can no longer submit W-2's on CD, Diskette or tape. The new system, Web Upload, is an efficient and easy method to electronically submit their
W-2's and 1099Rs. If employers previously submitted their W-2s on magnetic media, then their file will easily transfer to Web Upload.
Employers with less than 150 employees can continue to file paper W-2's; however, Department of Taxation encourage employers to consider filing them electronically.
For more information on electronically filing W-2s and 1099Rs please visit our Web site.
Federal Rates
- SSA wagebase $106,800
- Employee SS rate 4.2%
- Employer SS rate unchanged 6.2%
- Medicare rate 1.45%
- Standard business mileage rate .51 cents per mile
- Standard Medical and Moving mileage rate .19 per mile
- Standard charitable mileage rate .14 cents per mile
- Employer-provided Transportation benefits- $230 per month
- Adoption expenses $12,170
- 401K Deferred $16,500
- SIMPLE Deferred $11,500
- Over 50 Catch-Up (401K, 403B, & 457 plans) - $5,500
- Over 50 Catchup (SIMPLE Plans) $2,500
0 Virginia Rates
- VA UI wagebase- $8000.00
Health Care Reporting not Mandatory
The IRS announced reporting the cost of coverage under an employer-sponsored group health plan on Form W-2, Wage and Tax Statement will not be mandatory for Forms W-2 issued for 2011.
On January 13, 2011, the IRS released the Form W-2 for 2011. The IRS also announced that employers have the option to report the cost of coverage under an employer-sponsored group health plan in 2011. Code DD will be used to report the cost of coverage under an employer-sponsored group health plan in Box 12.
This allows the employers amble time to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement. New requirement will be published by the IRS later on this year. The reporting requirement is intended for information purpose only. The amount reported for Code DD is not taxable.
Link to IRS 2011 Form W-2: http://www.irs.gov/pub/irs-pdf/fw2.pdf
Link to IRS 2011 Form W-3
Link to IRS Notice:
IRS Release Form W-4
On January 3, 2011 the Internal Revenue Service announce the release of 2011 versions of Forms W-4 Employee's Withholding Allowance Certificate.
to maintain the exemption status for 2011, a new Form W-4 must be filed by any employee who claimed a full exemption form federal tax withholding in 2010, with their employer by Feb. 16, 201.
Federal News
Form SS-4
The IRS has revised Form SS-4, Application
Employer Identification Number (EIN), to clearly identify the applicant's true owner. Effective January 2010, all mail, fax, phone, and electronic EIN applications must disclose the name and taxpayer identification number of the true "responsible party" for the entity requesting an EIN. More Details
IRS Release Publication 15
On December 31, 2010 the Internal Revenue Service released the Publication 15, (Circular E), Employer's Tax Guide, revised for 2011.
The Pub 15 is a very important document that provide employer's information about employment tax responsibilities and includes the 2011 percentage method withholding and wage bracket tables. Pub 15 includes a What's New page and discuss the recent changes affecting employers and employee, including the employee's 4.2 tax rate for Social Security, extension of the COBRA premium-assistance credit and much more.
The Publication 15, (Cicular E) is available on the IRS website
Virginia Department of Taxation
The Virginia Department of Taxation provide an easy tool for employers to receive information on a timely matter.
Some of the benefits for subscribing:
- Employer Withholding Tax Filing Reminder
- Options on how to file and pay monthly or quarterly return
- Notification on Tax Changes
Sign Up today to subscribe to the their e-Subscription service.
New Hire Reporting
Employers and/or labor organizations doing business in the State of Virginia must report the following employees:
- New employees: Employers must report all employees who reside or work in the State of Virginia to whom the employer anticipates paying earnings. Employees should be reported even if they work only one day and are terminated (prior to the employer fulfilling the new hire reporting requirement).
- Re-hires or Re-called employees: Employers must report re-hires, or employees who return to work after being laid off, furloughed, separated, granted a leave without pay, or terminated from employment. Employers must also report any employee who remains on the payroll during a break in service or gap in pay, and then returns to work. This includes teachers, substitutes, seasonal workers, etc.
- Temporary employees: Temporary agencies are responsible for reporting any employee who they hire to report for an assignment. Employees need to be reported only once; they do not need to be re-reported each time they report to a new client. They do need to be reported as a re-hire if the worker has a break in service or gap in wages from your company.
If you have additional questions, please contact the Virginia New Hire Customer Service Center at 800-979-9014 or visit our website at www.va-newhire.com.
IRS News Release
IRS Form 941& Revised Form W-3
The Internal Revenue Service (IRS) released the Employer's Quarterly Federal Tax Return, Form 941 on March . Several changes to the form.
- Added a new line item: 5e Section 3121(q) Notice and Demand0 Tax Due on unreported tips
- Reminder to employers the employee social security rate is 4.2%, employers rate 6.2%. and Medicare tax rate is 1.45%
- Line 6a to 6c listed as future use and a message Do Not Complete Lines 6a-6d
The IRS also released 2011 revised Form W-3. There were problems with previous years placement of check boxes in Box B at the top of the Form W-3 that were causing scanning difficulties. The revision fixed the problem.
e-News For Payroll Providers
Payroll Professionals are enduring numerous changes to Federal and State tax laws. It is a constant battle to locate resources to ensure we are in compliance with the law. The IRS are working together with the American Payroll Association in providing webinars and publications to help the payroll profession stay abreast of the changing laws.
One valuable source provided by the IRS is the e-News for Payroll Providers. The benefits of subscribing to this resource is as follow:
- Recent legislative changes affecting federal payroll reporting,
- IRS news releases and special announcements pertaining to the payroll industry,
- New employment tax procedures
- Other information specifically affecting federal payroll tax returns.
To subscribe please go to the e-News Subscriptions page on the IRS Web
IRS Discontinue
Mailing Certain Forms
The IRS will no longer be mailing out certain forms and publications, due to the ever increasing use of electronics. For a list of forms and publications no longer being mailed out, click here for more information.
employees for 2011. For the next two years, It extends the 2001 and 2003 tax rate cuts and continues other payroll-related provisions that were expected to expired on December 31, 2010.
The bill cuts the Employee Social Security to 4.2 percent of wages from 6.2 percent for 2011. The bill extends the employer-providedd education assistance for another two years, up to $5,250 per year; continued for one more year the qualified transportation fringe benefit rate of $230.
Obama Signs Payroll Tax Cut
Obama signed a bill (H.R. 4853) on December 17, 2010 that provide a tax cut for
Phone Forums
Free Phone Forum on how the IRS focus on International tax compliance that will impact employee's retirement plans.
More Details....
IRS Phone Forums &
Webinars
The IRS offers National/Local Free Webinars and video presentaions tax and payroll professionals. The webinars are scheduled for at least 60 minutes, and a Certification of Completion will be offered. CPP and FPC may receive RCH credits if the broadcast meets the APA recertification credit requirements. Click here to view a list of 2011 APA Approval Providers. If the webinar/phone forum is not among the approved providers list or courses, please contact the APA's Certification Department at certification@americanpayroll.orgor call (210) 226-4600, ext 2238 or 2312 for more assistance.
PRESS RELEASE
Article from VA Tax Esubscription
"The 2011 General Assembly approved an electronic filing requirement for employers who qualify as semi-weekly filers to file all returns and make all payments electronically effective July 1, 2011. While some semi-weekly filers are currently required to make their VA-15 payments electronically, this new mandate now requires their VA-16 and VA-6 returns and payments to be filed electronically as well. The Virginia Department of Taxation has a variety of free electronic filing options: Business iFile, Web Upload, and the pay-by-phone system. Taxpayers will now be required to submit data electronically using these systems or by making payments through their bank using ACH Credit.
In addition to the above electronic filing requirements, effective January 1, 2012, employers who furnish 50 or more withholding statements, Form W-2, to employees for calendar year 2011 (due February 28, 2012), are required to file their annual report electronically using Web Upload.
The Tax Commissioner has the authority to waive the requirement to file and/or pay electronically should this cause undue hardship for your company. To request a waiver you must submit your request in writing, providing the business name, Virginia TAX Account Number, contact person, phone number, email address (optional), mailing address, the reason for the request and the projected date as to when your company will be able to file all semi-weekly forms electronically. Fax the request to (804) 367-3015 or mail to: Virginia Department of Taxation Hardship Waiver Request, P.O. Box 27423, Richmond, VA 23261-7423.
For additional information on these new requirements, visit us at www.tax.virginia.gov. If you have questions or need additional assistance, use our live chat feature or contact us at (804) 367-8037. "
IRS Video Portal
IRS continues to provide tax professionals and employers tools to stay breast on topics of interest. The Video portal contains audio and video clips of tax topics and archived versions of live panel discussions and webinars. Some of the topics they cover are The Examination Process for Employment Tax Returns Payments Made to Foriegn Persons, Health Care Tax Credit, Record Keeping, Online Fraud and Identity Theft and more. Details...
