TWAPA_April_2011_new.. - The Woodlands Chapter APA

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					                               The Woodlands Chapter
                             American Payroll Association
                             P.O. Box 9093, The Woodlands, Texas 77383

     Woodlands Chapter of the APA is affiliated with the American Payroll Institute, Inc. (dba American Payroll Association)
    but is an autonomous and independent organization. American Payroll Institute, Inc. is not responsible for the liabilities,
                                  statements, or activities of any of its affiliated chapters.”


    The Treetop View                  April 2011 Newsletter of The Woodlands
                       Chapter of the American Payroll Association

                     April 2011 Meeting – Multi-State Payroll Issues
TWCAPA thanks go to Nola Wills, CPP, who presented Multi-State Payroll Issues to The Woodlands Chapter
on Tuesday, April 12. Her presentation addressed state income tax, reciprocity, wage and hour requirements,
and unemployment. The handout materials included some great charts to assist practitioners deal with the
complexities of processing payroll in more than one state.

Nola started out by reminding us how lucky we are to work in Texas, one of the nine US states that does not
impose state income tax. However, if our companies operate in any of the other 42 jurisdictions (41 states plus
Washington, DC) or any US territories, we must appropriately record taxable gross wages, withhold state
income tax, deposit withheld funds, and report both gross wages and taxes withheld. As long as the employee
works and resides in the same state, those requirements are relatively straight forward. It gets a little stickier
when the employee lives in one state and works in another, or lives in one state and works in several others.

An employer must register for taxes in any jurisdiction in which it has NEXUS, which means the company has a
business presence in that jurisdiction. Nexus is established if even one employee, such as a telecommuter, works
in a state. Nexus is certainly present in any state where an employer has a plant, worksite, office, or store.

Most states require withholding once nexus is established and work is performed in the state. For transitory
employees, many states require withholding after a statutory period of time has passed. For permanent state
residents, withholding must begin as soon as any work has been done in the state.

Reciprocity rules are in place in many adjoining states. In those cases, tracking taxable gross is mandatory in
both (or all) states, but withholding is only required in the RESIDENCE state. If the employer has no nexus in
the employee’s residence state, no withholding is required and the employee will need to make quarterly state
income tax deposits. “Convenience” withholding is not advised, because it may lead to additional tax liabilities.

Nola told us about pay frequency statutes, termination pay requirements, and states’ rules around methods of
pay. One area of special focus for 2011 and beyond is state unemployment, due to the increasing number of
states in loan default to the federal government. Employers in these states will not be able to claim the entire
FUTA credit. This will significantly increase FUTA tax expense for employers.
        The Treetop View           April 2011 Newsletter of TWCAPA pg 2

         April Meeting Charity– Montgomery County Food Bank

Thanks to all chapter members who brought food and made monetary
contributions to our Easter drive for Montgomery County Food Bank.
Hunger knows no calendar. The food bank stock is very low due to the
stressed economy and so many people being out of work. Our
donations will help meet the increasing demand for more food and
services. Thanks, TWCAPA, for your continued generosity.

                Chapter Meeting May 10, 2011 – IRS Update
On Tuesday, May 10, 2011, Arlene J. Good, a great Internal Revenue Service friend
to The Woodlands chapter, will address our monthly chapter meeting with the
latest news from the IRS. Arlene always brings solid information to our group and
is ready to answer your questions about the latest and greatest at the Service.
FUTA requirements which are in continual flux are possible topics of interest.
Please join us for this outstanding training opportunity and learn what the IRS has
in store for us for the rest of 2011 and in future years. See you there!
        The Treetop View            April 2011 Newsletter of TWCAPA pg 3

            2010-2011 Woodlands Chapter Officers
         Position                        Officer                  Company
         President               Rebecca Schottie, CPP             Aon Hewitt

      President-Elect             Claudia Watson, CPP             Wood Group

     Past President /            Patty Lake Cady, CPP,             Aon Hewitt
   Presidential Advisor                CPA, CTP

         Treasurer                 Susan Payton, CPP              US Oncology

         Secretary                 Melissa Marra, CPP             Hearthstone

   Chapter Coordinator           Marilyn LaMance, CPP               Nabors

   Government Liaison               Olga Nesbit, CPP               Aon Hewitt

                  May 2011 Charity – Operation Military Embrace

Once again this year, Charity Chairperson, Claudia Watson, CPP, has arranged for
us to sponsor Operation Military Embrace, an organization that supports returning
injured military personnel and their families. This very deserving organization
allows us to show our soldiers and sailors our true appreciation of their sacrifices.
On the next page is a list of desired articles needed by our veterans. (Cash is also
good!) Open your hearts and your pocketbooks to support this very worthy cause.
The Treetop View   April 2011 Newsletter of TWCAPA pg 4
         The Treetop View           April 2011 Newsletter of TWCAPA pg 5

 Join TWAPA today! We need you (and you need us!).

         Order Your Chapter Shirts!
 yellow polo or Rebecca Ricks’ and Rebecca Schottie’s denim shirts? You can

                   Order TWAPA logo shirts just in time 2011.....

        Go to order online from
                                           the catalog.
                  Pick out a polo or click on Category/Woven shirts.
                    Request a quote for the style you have selected.
         In the comments section, request the TWCAPA tree logo (on file with
              vendor). It will be an additional $8.60 for embroidery of the logo.
                   Tax & shipping will be included in the cost quote.

         Our President, Rebecca Schottie ordered the women’s 100% cotton Denim
           women's shirt style #M550W. The cost was around $25 including the
        embroidery fee. Style #M550W sizes go up to 2XL. The style #M550 (men's)
         2XL is the same price as the M550W (women's) 2XL, or get a M550 (men's)
          3XL-4XL for $19.78. If you need a women's 3XL then go with the twill or
                                       poplin shirt.

       You can find the denim shirt style M550W and the M550 on the link below

                              Contact the company 3 ways:
                            Email
                                    Call 281-419-4610
                                      Fax 281-419-4613.

  Are you looking for a way to give back? Volunteer for a TWCAPA committee!
        The Treetop View           April 2011 Newsletter of TWCAPA pg 6

                                   Don’t Miss It!
   29 Annual APA Congress – May 24-27, 2011, Salt

                Lake City, Utah

There are several TWCAPA chapter members attending. We would
like to get together in Salt Lake for breakfast one day. If you can join
us, send an email to Patty Cady at so we can
plan on you.

            Upcoming TWCAPA 2011 Chapter Meeting Schedule

 Date and Location          Topic/ Charity Drive              Speaker
      May 10, 2011           What’s New at the IRS?       Arlene J. Good, IRS

    Aon Hewitt, 2601        Charity: Operation Military
Research Forest Dr., Bldg            Embrace
   3, The Woodlands

     June 14, 2011                Child Support            Amy Bryant, CPP

    Aon Hewitt, 2601        Charity: Operation Military
Research Forest Dr., Bldg            Embrace
   3, The Woodlands

   (FREE fajita dinner
catered by Lupe Tortilla)

      July 12, 2011           Social Security Update      Terry Stivers, SSA

    Aon Hewitt, 2601           Charity: Oak Ridge
Research Forest Dr., Bldg      Elementary School
   3, The Woodlands
       The Treetop View           April 2011 Newsletter of TWCAPA page 7

What's Your Objective? By Theresa Maher, APA/AAPA Job Board
In addition to the content of your resume, the form and format of the
document will say a lot to prospective employers about your qualifications for
a job. Regardless of the type of resume you choose (Skills-based,
Chronological, etc.), one question that many job seekers have is whether or
not they should include an objective statement on their resume. Objective
statements offer a chance to enhance the overall message of your resume
and can be very valuable. There are a few things to consider to make your
statement the most effective it can be.

First, be sure that the objective statement you create is written specifically for
the job for which you are applying. If the opportunity you’re considering is a
Payroll Manager, make sure the objective statement speaks specifically to
the goals you have related to that position. Broad statements can create
confusion in the mind of the employer as to whether or not you are truly
interested in the position available or simply applying to one of many jobs.

Second, make sure to utilize the job title for the position you're interested in
as keywords in the objective statement. Placing the job title throughout your
resume will also make your resume easier to find in a huge pile of competing
candidates. Like it or not, most employers use resume search software to
begin sorting a large volume of resumes. Typically, the more the job title
appears in your resume, the more visible it will become.

Remember, the purpose of a resume is to clearly state why you are applying
for a position. While it is not a resume requirement, an objective statement is
a great way to immediately position your self as an interested and qualified

Good luck!
         The Treetop View                    April 2011 Newsletter of TWACPA pg 8

          Chapter Elections Upcoming June 2011
    TWCAPA Board positions are open for fiscal 2011-12. This is an excellent
opportunity for you to get inside the workings of our chapter. As a board member,
 you will help plan our activities, programs, charitable endeavors, and generally
   chart the course of our chapter’s future. If you have a little time and a lot of
passion, we would love for you to join us as a TWCAPA officer. Please accept this
challenge, and throw your name into the hat. Nominations will be accepted at the
     May meeting, May 10, 2011, as well as by email to the chapter website at

                                     Open positions include:




                                       Chapter Coordinator

                                TWCAPA Officer Job Descriptions
  The President Elect will assist the President in all functions, and will fulfill/assume President’s
  responsibilities in the event of the President’s absence or inability to complete the term of office. The
  President Elect has one vote for each Executive Board matters in all Chapter elections and Chapter
  business. The President Elect will fulfill/assume the duties and responsibilities of the President on July
  1 of the preceding year after elected.
       The Treetop View                   April 2011 Newsletter of TWCAPA pg 9

                             TWCAPA Officer Job Descriptions
The Secretary is responsible for recording minutes, resolutions, votes and other noteworthy events.
The Secretary will be responsible for disbursing documents required by other Officers. The Secretary
is the custodian of the minutes and election ballots. The Secretary has one vote for each Executive
Board matters in all Chapter elections and Chapter business.

The Treasurer is responsible for controlling the cash assets of the Chapter. The Treasurer will deposit
and disburse funds. The Treasurer will secure two signatures on all checks. The following Officers will
be authorized to sign: President, President Elect, Treasurer, and/or Secretary. The Treasurer will
publish financial statements every quarter and at the end of the fiscal year (July 1-June 30). The
Treasurer will create an annual budget and present to the Executive Board of Directors for approval.
The Treasurer will give a verbal update report of cash on hand and expenditures monthly to the Board
of Directors and Quarterly to the Membership. The Treasurer is responsible for notifying the
President and/or Executive Board of Directors officers immediately in the event of financial errors.
The Treasurer has one vote for each Executive Board matters in all Chapter elections and Chapter
business. The Treasurer will be responsible for any tax reporting that is now or may be in the future
required of the Chapter.

The Chapter Coordinator will Chair any meetings for which both the President and President Elect are
absent. The Chapter Coordinator will relay Chapter events to the National Office of the American
Payroll Association.      The Chapter Coordinator will be listed in the National Directory as the
Woodlands chapter contact. The Chapter Coordinator will chair the Committee for National Payroll
Week. The Chapter Coordinator will be responsible for distributing awards as determined by the
Executive Board of Directors, purchasing and distributing gifts to guest speakers and soliciting and
distributing prizes for special events (i.e. National Payroll Week).

 Texas Payroll Conference, September 21-24, 2011

             Remington Hotel, Fort Worth

Please volunteer for a TWAPA committee! We need your ideas and
       your enthusiasm. Contact Rebecca Schottie, CPP, at

 to volunteer.
        The Treetop View            April 2011 Newsletter of TWCAPA pg 10

We are going to celebrate our successes of the past three years with a special meeting,
with a FREE dinner catered by Lupe Tortilla, Tuesday, June 14. Our speaker that night
will be Amy Bryant, CPP, nationally recognized speaker and author, whose topic will be
Child Support. Elections will also be held. We encourage you to join us for an
enlightening and enjoyable evening. RSVPs are absolutely required so that food can be
prepared for everyone. MORE TO COME NEXT MONTH…………

                       Calling all chapter members!
Do you have a creative, culinary, administrative, “whatever” talent? We
at TWCAPA need your help! Volunteer to help us create the BEST APA
chapter in the nation. There are all kinds of opportunities to give back!
          The Treetop View                  April 2011 Newsletter of TWCAPA pg 11

There are lots of committee service opportunities open.   For 2011-12, we are looking for
chairs for all committees, as well as willing workers to assist in the activities of each
committee.         Please   volunteer    to    help!       Contact    Rebecca     Schottie
( today to sign up. Thanks!

                  Committee                                     Volunteers

       Program Committee is responsible for                    OPEN – CHAIR
Arrangements <> Programs <> Regularly Scheduled
    Meetings (locations and equipment) <> RCH
  Distribution <> Meeting Buddy <> Table Host <>

Nomination & Elections Committee is responsible                 OPEN - CHAIR
            for the election process.

     Education Committee is responsible for                    OPEN – CHAIR
      Workshops <> CPP/FPC Study Group.

 Membership Committee is responsible for Open                   OPEN - CHAIR
 enrollment <> Membership Drive <> Membership

  Finance Committee is responsible for Audit <>                OPEN – CHAIR
 Annual Report <> Annual Budget <> Monthly and
Quarterly Reports <> Recording and Receipting paid
                 and unpaid dues

Historical Committee is responsible for Progress of             OPEN- CHAIR
              history <> Pictorial.

Liaison Services/ Special Events Committee is                  OPEN – CHAIR
responsible for Congress <> National contests <>
Texas Payroll Conference <> APA’s Chapter of the
    Year Contest <>Awards and recognition.

Community Service Committee is responsible for                  OPEN - CHAIR
               charity events.

By-Laws Committee is responsible for updating the               OPEN - CHAIR
             Chapter By-Laws
         The Treetop View                    April 2011 Newsletter of TWCAPA pg 12

        Join The Woodlands Chapter of the APA!
             Membership Benefits include:
   Monthly Chapter meetings with relevant Payroll speakers for YOUR
    career development.
   Recertification Credit Hours for FPCs and CPPs.
   Monthly Newsletter (this is it!)
   Chapter Web site with current job listings announcements, and
   Semi-annual CPP/FPC Workshop
   Celebrations and parties
   Professional recognition
   Networking, chapter, and community service opportunities    - - and
    SO much more!

                  WOW!!!! L@@K at this! What a Deal!

    Not able to make it to the 29th Annual Congress in Salt Lake
    City, UT? The APA and AAPA are excited to offer an online
    companion to Congress. The 2011 Virtual Congress & Expo
    is a convenient, free way to learn about crucial payroll and
    accounts payable topics, and get a taste of what the full, in-
    person event is all about.
                                                                     Our virtual doors open at 10:00
    Register today for this free event and attend 5 Virtual          a.m. ET on Thursday, May 26.
    Workshops presented by industry subject matter experts.          Between sessions you can tour
                                                                     the Virtual Expo to learn about
         Employee or Independent Contractor – How to                the latest product solutions and
        Determine a Worker’s Status                                  meet fellow professionals in
         Multi-State Income Taxation – Which States Require         our Networking Lounge.
        Me to Withhold?
         Nonresident Aliens – Who Are They, and What Special
        Requirements Do They Have?                                   Earn up to 5 RCHs
         Making Paycards Effective: Maximizing Participation In
        Your Paycard Program
        Sponsored by Global Cash Card
         Regular Rate of Pay – Are You Paying Your
        Nonexempt Employees Correctly?
          The Treetop View                 April 2011 Newsletter of TWCAPA pg 13

                          Calling for Volunteers for TPC!
Once again this year, TWCAPA is sponsoring a vendor booth at Texas Payroll
Conference. This year the conference is September 21-24, 2011, in Fort Worth at
the Remington Hotel. We need volunteers and attendees to “man” the booth at the
3 vendor hall sessions and folks to help decorate. If you’re interested in helping,
please contact Rebecca Schottie at

This year’s TPC theme is “The Race to Compliance” and participants are
decorating with a NASCAR and race car motifs. If you have any creative ideas on
how TWCAPA can use the theme and would like to help plan, decorate, prepare –
we would LOVE to have you join our TPC committee. If you have a leadership bent,
the position of chair of this committee is also open. You don’t have to attend TPC
to help us get ready. VOLUNTEER!

                      Compliance Corner by Olga Nesbit, CPP,
                          TWCAPA Government Liaison

Federal News
2011 Publication 1494
New Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income
(Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS)) have been published.


Guidance on W-2 Reporting for Health Coverage Issued (3/29/11)
         The Treetop View              April 2011 Newsletter of TWCAPA pg 14

Employers can generally calculate the cost of employer-sponsored health care to be reported
on an employee's Form W-2 starting in 2012 using the same calculations that determine
COBRA continuation payments for former employees, the Internal Revenue Service said
March 29.

The interim guidance, issued in Notice 2011-28, implements the reporting requirements
under tax code Section 6051(a)(14), enacted as part of the Patient Protection and Affordable
Care Act (Pub. L. 111-148), as amended.

The main guidance in the notice, in question-and-answer format, said an employer can
calculate the reportable amounts using either the COBRA-applicable premium method, a
modified COBRA premium method, or a premium-charged method with some exceptions.

The costs to include in the calculation for reporting on Form W-2, box 12, using code DD,

• The portion of the costs paid by the employee as well as the employer;
• The cost of coverage for all those covered through the employee, including amounts that are
  added to employee income for tax purposes; and
• The amount of an employee's funded health flexible-spending arrangement that exceeds the
  employee's annual salary reduction election to the FSA.

The cost of coverage to be reported on Form W-2 does not include:
• Amounts contributed to Health Savings Accounts, Health Reimbursement Arrangements,
  and Archer Medical Savings Accounts;
• Dental and vision plan costs that are not integrated with a group health plan.

IRS said that employers filing fewer than 250 Forms W-2 will not be required to include
health care coverage amounts on the 2012 form, but will be required to report the amounts
for 2013. The notice is considered interim guidance, “applicable until further guidance is

Supreme Court Rules FLSA Covers Oral Complaints (3/22/11)
The U.S. Supreme Court ruled that employees complaining about an employer's alleged wage
and hour violations under the Fair Labor Standards Act can do so orally as well as in writing
to be protected from retaliation (Kasten v. Saint-Gobain Performance Plastics Corp., U.S.,
No. 09-834, 3/22/11).

The court, ruling 6-2 (Justice Elena Kagan did not participate in the ruling), refused to
clarify, however, whether the statute covers such a complaint when it is made to a private
employer rather than to a government agency. Those decisions are to be made by lower
courts, the high court said.

 The federal wage and hour law prohibits retaliation against an employee who has “filed any
complaint” under the FLSA or related to the statute, the Supreme Court said. While the word
“filed” may suggest “some degree of formality” in an employee's complaint, it does not require
         The Treetop View                April 2011 Newsletter of TWCAPA pg 15

that the complaint be in writing, the majority said. If an oral complaint is “sufficiently clear
and detailed for a reasonable employer to understand it, in light of both content and context,

as an assertion of rights protected by the statute and a call for their protection,” it may be
protected under the FLSA, Justice Stephen G. Breyer said in writing for the majority.

Kevin Kasten, who was fired by Saint-Gobain Performance Plastics Corp. after orally
complaining to supervisors about the location of a time clock that he claimed deprived
employees of required compensation, sought the reversal of a U.S. Court of Appeals for the
Seventh Circuit ruling that Kasten's oral complaints were insufficient to trigger the FLSA's
anti-retaliation clause. The appeals court reasoned that the FLSA's plain text, which protects
employees who have “filed” a complaint, indicated that some form of writing is required.

IRS Releases Form 941, Form 941 Schedule R (3/1/11)
Form 941, Employer's Quarterly Federal Tax Return, and Form 941 Schedule R, Allocation
Schedule for Aggregate Form 941 Filers, were released March 1 by the Internal Revenue
Service. The final version of Form 941, which did not change from the draft released last
month, adds line 5e, Section 3121(q) Notice and Demand—Tax due on unreported tips, and
removes lines 6a to 6d, which were used for the HIRE Act credit on wages paid before Dec.
31, 2010. Form 941 also reflects the 4.2 percent rate of Social Security tax for employees for
2011. Schedule R is to be used by aggregate filers of Form 941. Form 941 and Schedule R are
available on the IRS website.

Revised National Medical Support Notice Part A Released (4/1/11)
A revised National Medical Support Notice Part A, “Notice to Withhold for Heath Care
Coverage,” that includes two new options on its employer response sheet was released by the
federal Office of Child Support Enforcement April 1.

The previous version of Part A expired March 31, 2011; the new version expires March 31,

One of the new options enables employers to indicate that an employee is temporarily
ineligible for health care coverage subject to a waiting period. The other allows employers to
indicate the date they forwarded Part B of the medical support notice to an appropriate
health plan administrator.

The instructions to plan administrators included two changes. Electronic notifications are an
option when contacting custodial parents, children, and employees. Administrators are
prohibited from denying enrollment of a child in a health plan if a parent had previously
applied for enrollment but was not a participant when the administrator received Part B.
          The Treetop View             April 2011 Newsletter of TWCAPA pg 16

State News
FUTA tax rate for 2011.
The FUTA tax rate will remain at 6.2% through June 30, 2011. The tax rate is scheduled to
decrease from 6.2% to 6.0% beginning July 1, 2011. Visit for updated information
and Publication 15.

Unemployment – Credit Reduction States
Employers in “credit reduction” states must remember to calculate a credit reduction as an
adjustment to their FUTA tax on their 2010 940, Employer’s Annual Federal Unemployment
(FUTA) Tax Return. “Credit reduction” states are states that did not repay the money they
burrowed from the federal government to pay unemployment benefits.

The Department of Labor determines the credit reduction states for each year, and in 2010,
those states are Indiana, Michigan and South Carolina. Employers in these states must
reduce their .054 credit on their Form 940 by the following amounts:

   ■ Indiana .003
   ■ Michigan .006
   ■ South Carolina .003

Employers in these states must use the Schedule A (Form 940) to compute the credit
reduction and attach the Schedule A to their Form 940. As a result, if employers pay wages
that are subject to the unemployment tax laws of a credit reduction state, the employers must
pay additional FUTA tax. Employers must include liabilities owed for credit reduction in
calculating their fourth quarter deposit.

States have until November 10th each year to meet their Federal unemployment payback
obligations. Generally, DOL credit reduction notices will not be issued until the state has
passed the November deadline, towards the end of November-beginning of December.

A special unemployment insurance assessment on taxable wages is effective for 2011 and
2012, under a measure (H.B. 2619) signed April 25 by Gov. Jan Brewer (R). The assessment,
which will be determined by the Department of Economic Security director, is payable for the
first three quarters of 2011 by Oct. 31. For the fourth quarter of 2011, and all of 2012,
employers are required to remit the assessment with their quarterly UI contributions. The
special assessment will not exceed 0.4 percent for 2011, or 0.6 percent for 2012. Funds from
the assessment will be used to pay interest owed on federal loans. If the interest on federal
advances is waived for 2011 or 2012, the assessment will be reduced by 0.1 percent for the
applicable year.
          The Treetop View              April 2011 Newsletter of TWCAPA pg 17

Effective January 2012 -
California has amended section 706.011 of the Civil Procedure. Courts will start issuing
garnishments for employees who have been found to be liable of financial abuse of an elder or
a dependent adult.
Source Assembly Bill 2619

"14-Day" Withholding Rule for Nonresident Employees - a de minimis withholding rule
applicable to nonresident employees.

“14-Day” Withholding Rule: Under the “14-Day” rule employers are not required to withhold
Connecticut income tax from wages/compensation paid to nonresident employees for services
performed in Connecticut provided said employees are assigned to a primary work location
outside of Connecticut and work in Connecticut 14 or fewer days during a calendar year.
This “14-day” rule does not, however, exclude the wages/compensation earned by nonresident
employees from Connecticut income tax. To the contrary, even though employers are not
required to withhold Connecticut income tax on wages/compensation paid to nonresident
employees who perform services in Connecticut for 14 or fewer days during a calendar year,
such nonresident employees are required to report such wages/compensation as Connecticut
source income and pay Connecticut income tax on such wages/compensation.

Is an Employer Required to Report the Wages/Compensation Paid to a Nonresident
Employee Who Works Less Than 14 days in Connecticut During a Calendar Year? Yes. Even
though employers are not required to withhold Connecticut income tax from
wages/compensation paid to nonresident employees who work less than 14 days in
Connecticut during a calendar year, employers are required to report such wages
/compensation. Even if no Connecticut income tax was withheld, employers report
wages/compensation on Form CT-941, Connecticut Quarterly Reconciliation of Withholding,
and in the state wages, tips, etc. box of federal Form W-2. Employers are required to file
copies of every federal Form W-2 reporting Connecticut wages paid (even if no Connecticut
income tax was withheld) during the calendar year with DRS. Employers submit these copies
with Form CT-W3, Connecticut Annual Reconciliation of Withholding.

For more information and definitions applicable to this rule, visit the CT website.

District of Columbia
The Office of Tax and Revenue announced today that it has begun to mail notices to
employers, instructing them to increase withholding tax collections from 5,500 individuals
who failed to take advantage of the tax amnesty which began on Aug. 2 and ended Sept. 30,
2010. Legislation enacted for the amnesty authorizes the District to require employers to
withhold additional money from tax delinquents who are subject to D.C. income tax
withholding. Withholding exemptions are to be changed to zero. The amnesty program
allowed delinquent individuals and businesses to pay their overdue taxes and interest, while
avoiding penalties and fees.
           The Treetop View                     April 2011 Newsletter of TWCAPA pg 18

Effective January 1, 2011
Employers must immediately adjust withholding tax rates. Tax rate for individuals has
increased from 3 percent to 5 percent

The new rate of withholding applies to
      • Employee compensation (i.e., wages and salaries) paid in Illinois,
      • Unemployment paid to an Illinois resident who has asked to have Illinois taxes
        withheld, and
      • Gambling or lottery winnings in Illinois paid to an Illinois resident.

The Illinois Withholding Tax Tables in Booklet IL-700- has been updated. Formula for
Automated Systems

.05 x (Wages — ((IL-W-4, Line 1 allowances x $2,000) + (IL-W-4, Line 2 allowances x $1,000)))
                             number of pay periods in a year


The cost of health insurance premiums for adult children of employees is excluded from
employees' taxable income under H.B. 255, signed March 16 by Gov. Steve Beshear (D). The
legislation does not update the state's conformity to the IRC in general. The law is effective
retroactively to Jan. 1, 2011.

New York
Wage Theft Prevention Act
On December 14, 2010, the Governor of New York signed the New York Wage Theft
Prevention Act into law. This new law creates additional wage disclosure, payroll retention
and penalty requirements and is effective April 9, 2011. (There have been conflicting dates in
different articles, but the on-line statute refers to 4/9/11.)

1)Changes to Pay Advice (Wage Statement)
Current information required to be disclosed with every payment of wages includes:
   Gross wages
   Net wages

Under the new law, the following additional information will need to be provided with every
payment of wages:
   The dates of work covered by that payment of wages
   Name of employee
   Name of employer
   Address and phone number of employer
   Rate(s) of pay and the basis thereof (i.e., hour, shift, day, etc.)
         The Treetop View              April 2011 Newsletter of TWCAPA pg 19

  Allowances, if any, claimed against minimum wage (e.g., tip, meal or lodging allowances)
  If nonexempt, the regular hourly rate(s) of pay, the overtime hourly rate(s) of pay, the
  number of regular hours worked and the number of overtime hours worked
  If piece rate, the piece rate(s) of pay and number of pieces completed at each piece rate
Upon request, a written statement of how wages were computed.

2)Changes to Initial Written Wage Notice
Since late 2009, NYS employers have been required to notify all new employees, in writing,
    Rate of pay (regular and overtime)
    Regular pay day designated by the employer
The employer also has to obtain written acknowledgement of from each employee of their
receipt of this information. The current NYS model notice for hourly employees looks like

Notice Requirement: Under the new law, the following additional information will need to be
provided in every initial pay notice:
   Allowances, if any, claimed against minimum wage (e.g., tip, meal or lodging allowances)
   The name of the employer and any DBA (doing business as) names used by the employer
   The physical address of the employer's main office or principal place of business and the
   mailing address, if different
   The telephone number of the employer

Acknowledgement: The written acknowledgement needs to be signed and dated by the

Primary Language Requirement: In addition, the new law requires that the notice be
provided in English and the employee's primary language (if the NY DOL has provided a
template notice in that language). The employee's written acknowledgement of receipt must
also include a statement that the employee accurately identified his/her primary language to
the employer and the notice to him/her in that language (unless the template isn't available
in that language, then it can be provided in English).

Changes: Employer must notify employee in writing of any changes, at least 7 calendar days
before the time of such change (unless the change is reflected in the wage statement).

3) New Annual Wage Notice Requirement
The new law requires that the information provided in the initial wage notice be provided
before February 1 of each subsequent year of employment. The first annual notices will need
to be provided by February 1, 2012.
         The Treetop View              April 2011 Newsletter of TWCAPA pg 20

4) Changes to Payroll Record Retention Rules
Current rules require the employer to retain payroll records for 3 years, including, for each
    Hours worked
    Gross wages
    Net wages

Payroll Records: Under the new law, the payroll retention period is 6 years and the payroll
records must be "contemporaneous, true and accurate payroll records showing for each week
worked" the information above along with:
   Rate(s) of pay and basis thereof (i.e., hour, shift, day)
   Allowances, if any, claimed as part of the minimum wage
   If nonexempt, the regular hourly rate(s) of pay, the overtime hourly rate(s) of pay, the
   number of regular hours worked and the number of overtime hours worked
   If piece rate, the piece rate(s) of pay and number of pieces completed at each piece rate

Notice Records. The retention for the employee’s acknowledgement of the initial and annual
pay notice is also 6 years.

5) Penalties
Failure to Provide Wage Statement: $100 per work week up to a maximum of $2500

Failure to Provide Initial Wage Notice: Notice must be provided within 10 days of his first
day of employment, otherwise, penalty is $50 per week up to a maximum of $2500

Governor Signs Bill That Conforms Ohio Law With Federal Tax Code: Governor John Kasich
signed Substitute House Bill (H.B.) 58 on March 7, 2011 which brings Ohio law into
conformity with the federal tax code. The bill was signed into law as an emergency measure
and became effective on March 7, 2011. The provisions bring Ohio into conformity with
federal tax law changes enacted near the end of December 2010 that occurred too late for the
Ohio General Assembly and governor to address.

South Dakota
Under a recently signed unemployment insurance measure (S.B. 86), the maximum state
investment fee rate for experience-rated employers was reduced to 0.53 percent from 0.55
percent, effective for 2011. Contribution rates for 2011 now range from zero to 10.03 percent,
including the applicable investment fee (zero to 0.53 percent in 2011). A separate measure
(S.B. 64) allows the interest paid by negative-balanced employers to be treated like quarterly
contributions and credited to their individual experience rating accounts.
         The Treetop View                April 2011 Newsletter of TWCAPA pg 21

Beginning with unemployment insurance tax rates for 2012, employers’ annual contribution
notices will be provided no later than November 2011, following the enactment of S.B. 125.
This measure revised the time period for computing employer contribution rates from Dec. 31
to June 30. Formerly, annual tax rate notices were made available by March of the applicable

Texarkana Residents.
Acts 48 and 177 of 1977 provide for a border city exemption for residents of Texarkana,
Arkansas and Texarkana, Texas. An Arkansas resident whose permanent residence is within
the city limits of Texarkana, AR is exempt from Arkansas individual income taxes. All income
received is exempt while the taxpayer is a resident of Texarkana, AR. Taxpayers living on
rural routes or in surrounding towns of Texarkana do not qualify for exemption. Texas
residents whose permanent residence is within the city limits of Texarkana, TX are exempt
from Arkansas individual income taxes on wages earned in Texarkana, AR. This is the only
income that is exempt. Income received from any other sources in Arkansas is fully taxable.
The employer must furnish qualifying employees with Form AR4EC (TX) State of Arkansas -
to the taxpayer’s Arkansas individual income tax return in order to receive the exemption


Child support orders issued in foreign countries can be enforced in Utah under a bill signed
March 30 by Gov. Gary Herbert (R). The measure is effective July 1, 2013.

Under the bill (S.B. 34), the laws of the foreign country that issued a support order will
determine the amount and duration of payments, including how to calculate and pay arrears
and interest.

Foreign countries with support orders enforced by the Utah Department of Human Services
will require a reciprocal agreement with the United States.

Utah's legislature passed the foreign support law after the U.S. Senate ratified a treaty Sept.
29, 2010, that recognized the terms of the 2007 Hague Convention on the International
Recovery of Child Support and Other Forms of Family Maintenance.
          The Treetop View                 April 2011 Newsletter of TWCAPA pg 22

West Virginia
Legislation bringing West Virginia law into conformity with the Internal Revenue Code as
amended before Jan. 1, 2011, was signed March 2 by Gov. Earl Ray Tomblin (D). West
Virginia now conforms to the federal exclusion from gross income of employer-paid health
insurance coverage for dependents younger than 27.

Local News
New York City
Publications NYS-50-T (dated 1/06), NYS-50-T.1 (dated 1/10), and NYS-50-T.2 (dated 1/11)
have been replaced. Withholding tax tables and methods for New York State, New York City,
and Yonkers are now in three separate publications
·      NYS-50-T-NYS, New York State Withholding Tax Tables and Methods
·      NYS-50-T-NYC (5/11), New York City Withholding Tax Tables and Methods
·      NYS-50-T-Y, Yonkers Withholding Tax Tables and Methods

Withholding tax changes
Yonkers withholding tax rate change effective May 1, 2011
   For employees subject to Yonkers resident personal income tax withholding, revised
   withholding tax computation rules effective on or after May 1, 2011.
   Calculate new withholding tax amounts using Publication NYS-50-T-Y

   Yonkers - Withholding Tax Tables and Methods .
   Supplemental Rates
      Yonkers Resident ............................ 1.70975% (.0170975) [1.103% (.01103)]
      Yonkers Nonresident ....................... 0.50% (.0050) [No change]

Any chapter members that require additional information on
recent regulatory changes or would like to see a particular
Federal, State and/or Local regulatory requirement detailed,
please contact Olga Nesbit at

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