nebraska chapter of the american payroll association · 2017-10-19 · irs releases 2017 aca...
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NEBRASKA CHAPTER OF THE AMERICAN PAYROLL ASSOCIATION Volume 2017/Issue 4 October Newsletter
SEPTEMBER MEETING HIGHLIGHTS
We hosted our 4th 2017 NEAPA Chapter meeting on Sept 21st. Our
Special Guest Speaker was Sandy Famodu, Director from GTN West
Central. Sandy spoke on one of our favorite subjects, TAXES! Sandy
shared her personal experiences of being an expatriate in the UK and
was able to give new insight to employers, from the “employee”
perspective on this topic. She also discussed the challenges that
employers face with expatriate assignments (U.S. employees working
in other countries) and inpatriate assignments (those from other
countries, who work in the U.S.). She went into detail about the
compliance issues that can happen with business travelers and
shared a checklist and ideas for tracking where they have been. We
hope that you learned something new and took away a new
appreciation for those Payroll Professionals who deal with these
complicated issues on an “everyday” basis.
Steve Bergeron, Inspirational Speaker, Corporate Trainer & Coach
Final Chapter Meeting for 2017 NE APA will be held at a NEW meeting
location, Pasta Amore’ in Rockbrook Village, on Thursday, October 19th. This
will be a lunch meeting with our guest speaker Steve Bergeron. Registration
and sign-in starts at 11:30 and lunch is 12 – 1:30 p.m. For those of you who
have sent in your RSVP and lunch order, we look forward to seeing you
there. As a reminder, the cost for this meeting includes the additional cost of
lunch, so it will be $10.00 for National & Local NE APA members and $12.00
for Local NE APA members Only & Guests
IN THIS ISSUE:
Chapter News: Nebraska AP September
Meeting
Final APA Meeting for 2017
Congratratulations to new CPPs
New APA Webinars
IRS News and Changes-
Payroll Humor
Job Vacancies
YOUR NE APA OFFICERS
President: Beckie Matthews
Vice President: Christi Collins
Treasurer: Pat Thompson
Secretary: Dionne Mason
COMMITTEE MEMBERS
Membership: Kristi Epperson
Communications: Tammy Repouille
Education: Sara Venema
Email: [email protected]
Website: www.nebraskaapa.com
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CONGRATULATIONS to our new Certified Payroll Professionals:
Krista Cormaci, Paypal Pasha Ostby, TEAM Software Kelsey Drexel, Commonwealth Electric
Tiffany Peacock, Seldin Company Stacy Storant, B&R Stores, Inc Beckie Matthews, Hayneedle
“Leadership and learning are indispensable to each other.”
John F. Kennedy
APA EVENTS AND WEBINARS
Thursday, November 2 1:00 p.m. - 2:00 p.m. ET
FREE
REGISTER
NOW>>>
You're invited to a free APA webinar to learn how to increase your chances of passing APA's certification exams.
Prepare for the Fundamental Payroll Certification (FPC) or Certified Payroll Professional (CPP) exams with a PayTrain® payroll training program.
• Learn about FPC and CPP certification and understand which credential is right for you
• Discover the advantages of preparing for your exam with a PayTrain® payroll training program
• Save $50 on your purchase of PayTrain® or PayTrain® Fundamentals
Presenters:
Jim Medlock, CPP Director of Education and Training
Mike Downs APA Learning Systems
EIPC: This November 5-8, discover solutions to complex payroll issues facing institutions of higher education at APA's Educational Institutions Payroll Conference, Download the course brochure for details on
registration and course content
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Achieve a Smooth Year-End
Starting October 16, Preparing for Year-End and 2018 offers five specialized areas of focus to ensure your
organization is thoroughly prepared to close out the year. Presented in multiple delivery options, this six-hour
course will address all aspects of year-end processing and compliance to ensure an efficient and penalty-free
year-end.
Choose the course that best fits your needs!
• Payroll
• Government/Public Sector
• Canadian Payrolls
• Accounts Payable/Disbursements
• Advanced Payrolls
Can't make in-person classes? Courses are also available on demand and online. Register today! State and Local News.
• California – DACA employer guidance released; San Francisco Payroll Expense Tax
adjusted; Santa Clara minimum wage increased
• Indiana – county income tax rate changed
• Iowa – electronic UI payments required
• Minnesota – minimum and training wages increased; reciprocity with Wisconsin agreement
not reached
• Nebraska – annual reconciliation returns filing deadline accelerated
• New York – New York City DACA employer guidance posted
• North Carolina – waiver from electronic filling requirement for annual reconciliation returns
extended
• Oregon – state public transportation payroll tax established; workers' compensation payroll
tax increased
• South Carolina – new withholding tables for 2018 issued, state supplemental wage tax rate
unchanged
• South Dakota – minimum wage, tip credit increased
• Virginia – tax amnesty program conducted
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Revised Version of Income Withholding Form (IWO) and Instructions
On August 31st, 2017, the Office of Child Support Enforcement released a revised version of the Income Withholding for
Support Order (IWO) form and Instructions. The new form can be used immediately, however, Employers can continue to
honor previous versions of the form until August 31st, 2018.
See the link below for the 2017 Revisions to the IWO form and Instructions.
https://www.acf.hhs.gov/css/resource/income-withholding-for-support-form
Key Changes to the form include:
• Added an optional field for the employee/obligor’s date of birth
• Clarified that an entity, including a child support agency, should send a One-Time Order/Notice for Lump Sum Payment after receiving notification of an upcoming lump sum payment by an employer or other source
• Removed the words “up to” in front of the withholding limit percentage and clarified that the IWO sender must enter a specific withholding percentage, up to the Consumer Credit Protection Act (CCPA) limits, in the correct data field to avoid over withholding from a noncustodial parent
• Clarified tribal withholding limits and added links to addresses and contacts for tribes
• Changed references to FIPS Code to Locator Code
• Added a link to the OCSE Child Support Portal for employers to report lump sum payments and terminations and to update information about their company
• Added emphasis to fields that are optional and not required
• Added a statement on encryption requirements
To learn more details about the changes made to the IWO form and Instructions, including some minor changes not
mentioned in the above, please go to the website below:
https://www.acf.hhs.gov/css/resource/2017-revisions-to-the-iwo-form-and-instructions
Where to Start When Hiring Someone Who is Not a US Citizen?
How familiar are you with these terms: NRA or F-1 or OPT? If you attended the NE APA chapter meeting on Thursday,
Sept. 21st, we had some discussions about these terms as well as the taxation and employment documents related to
these terms. For some payroll professionals, hiring an employee who is classified under one of these terms, may only
happen a few times throughout their payroll career, so it is hard to know “where to start” or even “what to do” in these rare
situations.
Below are some websites that will help guide our members on what to do if this situation ever arises. These websites
contain documents that will get you on the right track and give you confidence that you are getting the correct employment
documents and taxing these employees correctly, as well as any “restrictions” these employees may have.
USCIS Website:
https://www.uscis.gov/i-9-central/handbook-employers-m-274
At the USCIS website above, the M-274 (Handbook for Employers) will give you direction on what employment
documents should be presented if someone is not a U.S. citizen, but are legally working in the U.S. This handbook was
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just updated on 7/17/2017 and has the newest images of immigration documents but still contains the older versions of
the immigration documents as well.
IRS Website:
https://www.irs.gov/pub/irs-pdf/p515.pdf and https://www.irs.gov/pub/irs-pdf/p15.pdf
https://www.irs.gov/pub/irs-pdf/p519.pdf and https://www.irs.gov/pub/irs-pdf/n1392.pdf
On the IRS websites above, you can download Publication 15 and Publication 515 which was created to assist employers,
on how they should tax Nonresident Aliens and Resident Aliens. Publication 519 and Notice 1392 are also helpful for
employers, but these documents are written for the “employee point of view”, and are used to help them determine if they
are a Nonresident Alien or Resident Alien.
Common F-1 Student Issues:
There are some common issues to be aware of, when hiring employees on an F-1 student visa. The employee should be
able to provide the following documents to establish their identity and employment authorization to legally work in the U.S.
The Student’s foreign passport, the Form I-20 with the designated school’s official (DSO) endorsement and Form 1-
94/Form 1-94A, indicating F-1 non-immigration status. The Form I-20 is completed by the college/university and grants
permission for the student to work, while they are attending school. Employers need to know about this form and make
sure they obtain this from the employee upon hire. Also, this form will state the student’s major area of study and any job
they are hired for, must directly relate to that major.
Another item to consider is the employee’s work schedule. Employees on an F-1 student visa, who are still attending
school, are only allowed to work 20 hours a week. When school is completed or not in session, then they can work full-
time hours. Make sure that your managers are aware of this requirement as well.
Someone on an F-1 student visa could also complete Optional Practical Training (OPT) during or after completion of their
school degree. Typically, the OPT is for 1 year and any job should be directly related to their major area of study as well.
Those on a STEM OPT (those majoring in science, technology, engineering, or mathematics) can also apply for a 24-
month extension. The employment documents should state if they are on a regular on an “OPT” or “STEM OPT”
program. Keep an eye on these expiration dates—IF their documents are getting ready to expire, you will need to follow
up with the employee on when they will be able to provide other employment documents (with a later expiration date) that
will allow them to keep working in the US.
Lastly, what taxes should be deducted from those on an F-1 student visa? Typically, those on an F-1 student visa are
EXEMPT from FICA (Social Security and Medicare) taxes, since this is not a benefit they can receive, since they are not a
U.S. citizen. However, typically those on an F-1 student visa are liable to for Federal income taxes and State income
taxes (if applicable). The withholding elections can vary depending on if they are a Non-Resident Alien (NRA) or a
Resident Alien. The IRS publications go into more detail on this topic, but ultimately it is the responsibility of the
Employee to complete their Form W-4 accordingly. This is not something the Employer is expected to instruct the
employee on, but you can refer them to the IRS publication 519 and Notice 1392, if they are unsure or want more
information.
IRS NEWS AND UPDATES
IRS Proposes Rules to Allow Truncated SSNs on W-2s Furnished to Employees. The IRS issued proposed rules to
allow employers to truncate employee social security numbers (SSNs) on copies of Forms W-2 furnished to employees
beginning with the 2018 forms that will be furnished in 2019. 82 F.R. 43920
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IRS Releases 2017 ACA Reporting Forms, Instructions. Forms 1094-B, Transmittal of Health Coverage Information
Returns, 1095-B, Health Coverage, 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage
Information Returns, and 1095-C, Employer-Provided Health Insurance Offer and Coverage, along with their instructions,
have been posted to the APA website
.
IR-2017-37 IRS Summarizes "Dirty Dozen" List of Tax Scams for 2017
Social Security Wage Base Up to $128,700 for 2018
On October 13, the SSA announced that the 2018 social security wage base will be $128,700, an increase of $1,500 from $127,200 in 2017. All covered wages are still subject to the 1.45% Medicare tax. The maximum social security tax employees and employers will each pay in 2018 is $7,979.40, an increase of $93 from $7,886.40 in 2017.
Media Relations Office Washington, D.C. Media Contact: 202.317.4000
www.irs.gov/newsroom Public Contact: 800.829.1040
Don’t Take the Bait, Step 10: Steps for Tax Pros with Data Incidents; Tips to Help Protect
Clients, Taxpayers
IR-2017-152, Sept. 12, 2017
WASHINGTON – The IRS, state tax agencies and the tax industry today reminded tax professionals that if they
experience a breach or theft of taxpayer data they should immediately contact the IRS to help protect clients.
The IRS can take some steps to lessen the impact of tax-related identity theft on clients, but a quick response by tax
practitioners discovering a problem can help avert problems. Generally, criminals work quickly to convert the stolen data
into fraudulent tax returns to claim refunds.
Encouraging tax practitioners to report data thefts is the final news release in a 10-week, “Don’t Take the Bait” campaign,
an effort focused on informing tax professionals. The IRS, state tax agencies and the tax industry, working together as the
Security Summit, urge practitioners to immediately report data losses to the IRS and state tax agencies. This is part of the
ongoing Protect Your Clients; Protect Yourself effort.
“The IRS, the states and the nation’s tax community continue to make progress in the battle against tax-related identity
theft,” said IRS Commissioner John Koskinen. “But we need the help of tax professionals across the country to help
strengthen this effort. In addition to working to ensure the safety of their systems, practitioners should promptly report
identity theft or data breaches to help protect their clients.”
The IRS has created a reporting process for tax professionals. Those experiencing a data loss should contact their local
IRS stakeholder liaison. The IRS representative will relay information to other parts of the IRS that need to know, including
the Return Integrity and Compliance Services and Criminal Investigation divisions.
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Also, be aware that some states require notification of data losses, and tax professionals should notify each state for
which they prepare returns.
IRS stakeholder liaisons will need a list of the affected taxpayers, including names and Social Security numbers. Send the
file to liaisons in a CSV (Comma Separated Values) format. If using Microsoft Excel, simply “save as” and scroll the list of
options to CSV. Save and encrypt the file before emailing it to IRS staff.
Protecting Clients and Businesses by Reporting Data Thefts Tax professionals should review IRS Data Theft Information for Tax Professionals for details on reporting losses. Preliminary steps include: Contacting the IRS and law enforcement:
• Internal Revenue Service, report client data theft to local stakeholder liaisons.
• Federal Bureau of Investigation, the local office.
• Secret Service, the local office (if directed).
• Local police – To file a police report on the data breach if required by insurance companies.
Contacting states in which the tax professional prepares state returns:
• Any breach of personal information could impact the victim’s tax accounts with the states as well as the IRS. Email the Federation of Tax Administrators at [email protected] to get information on how to report victim information to the states.
• State Attorneys General for each state in which the tax professional prepares returns. Most states require that the attorney general be notified of data breaches. This notification process may involve multiple offices.
Contacting experts:
• Contact a security expert to determine the cause and scope of the breach, to stop the breach and to prevent further breaches from occurring.
• Contact insurance companies to report the breach and to check if the insurance policy covers data breach mitigation expenses.
Contacting clients and other services:
• Federal Trade Commission o For more individualized guidance, contact the FTC at [email protected].
• Credit / identity theft protection -- certain states require offering credit monitoring / identity theft protection to victims.
• Credit bureaus – to notify them if there is a compromise and clients may seek their services.
• Clients – Send an individual letter to all victims to inform them of the breach but work with law enforcement on timing.
• IRS toll-free assisters cannot accept third-party notification of tax-related identity theft. Again, preparers should use their local IRS Stakeholder Liaison.
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OPPORTUNITIES
https://careerlink.com/job/3754-000952-payroll-specialist/
visit our website at http://www.nebraskaapa.com/
Contact Us
Follow the Nebraska Chapter of the
American Payroll Association on
Facebook (@NebraskaPayroll) or
LinkedIn.
The Nebraska Chapter is an
affiliated local chapter of the
American Payroll Association.
Learn more about the APA at
www.americanpayroll.org/
Payroll & HR – October 2017 1
IRS NEWS FOR PAYROLL AND HUMAN RESOURCES October 2017
►UPCOMING WEB CONFERENCES See Webinars for Small Businesses for upcoming National and Local Webinars Click HERE for videos recently posted to the IRS Video Portal.
►DISASTER NEWS The IRS has issued many notices regarding Hurricane Harvey and Hurricane Irma. How do you stay up to date?
• Help for Victims of Hurricane Harvey
• Help for Victims of Hurricane Irma
• Beware of Fake Charity Scams How can you help those who are affected?
• Some employers will allow an employee to donate leave. The employer will send cash to a charitable organization. Details in Notice 2017-52
• Retirement plans such as 401(k)s can make loans and hardship distributions to victims and members of their families.
o This broad-based relief means that a retirement plan can allow a victim of Hurricane Harvey or Hurricane Irma to take a hardship distribution or borrow from the victim’s retirement plan.
o It also means that a person who lives outside the disaster area can take out
a retirement plan loan or hardship distribution and use it to assist a son, daughter, parent, grandparent or other dependent who lived or worked in the disaster area.
o See IR-2017-138, Aug. 30, 2017 for Hurricane Harvey
o See IR-2017-151, Sept. 12, 2017 for Hurricane Irma
►NEWS
Make a Difference, Become a Community Tax Volunteer
• The IRS is looking for community volunteers to provide free tax preparation and help to their neighbors and other area residents in 2018.
• The IRS sponsors the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs. These two programs offer free tax help across the country for people with low-to-moderate incomes, senior citizens, persons with disabilities, those with limited English proficiency and Native Americans. This year, VITA and TCE volunteers prepared more than 3.5 million federal tax returns for all types of taxpayers at no cost.
Payroll & HR – October 2017 2
Reminder about W-2 and 1099-MISC due dates
• The IRS reminds you and your clients that the PATH Act requires you to file Forms W-2 and W-3 with the Social Security Administration by January 31, whether filing paper forms or electronically.
• It also requires you to file Form 1099-MISC, when reporting non-employee compensation payments in Box 7, with the Internal Revenue Service by January 31.
Private Debt Collection
• Before the debt collection firm contacts the taxpayer, the IRS will send Notice CP40 and Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.
►TAXES. SECURITY. TOGETHER. (Identity Theft)
Watch Out for the W-2 Email Scam
• The W-2 scam – called a business email compromise or BEC – is one of the most dangerous phishing email schemes trending nationwide from a tax administration perspective.
• In 2017, the IRS saw the number of businesses, public schools, universities, tribal governments and nonprofits victimized by the W-2 scam increase to 200 from 50 in 2016. Those 200 victims translated into several hundred thousand employees whose sensitive data was stolen.
►NEWS FROM OTHER AGENCIES
Help SBA Reduce Unnecessary Regulatory Burdens
• SBA Administrator Linda McMahon has appointed a task force to evaluate small business regulations and determine which should be repealed, replaced, or modified. Your feedback on small business regulations is important. Submit your comments before October 16, 2017.
►IN EVERY ISSUE View Your Account Information Small Business and Self-Employed Tax Center Understanding Your IRS Notice or Letter Tax Scams / Consumer Alerts Identity Protection: Prevention, Detection and Victim Assistance Federal Trade Commission:
• Individuals: https://www.identitytheft.gov/
• Business:https://www.ftc.gov/tips-advice/business-center/privacy-and-security/data-security
Racing Towards Year End: Employment Tax Reminders
Representatives from SSA and IRS will present information on the following topics:
Internal Revenue Service: W-2 Verification Pilot Data protection and what to do if you experience a data breach Identity theft and data security breach scams & schemes Navigating the IRS web site to find information payroll professionals need Social Security Administration: Business Services Online – What is it? Business Services Online Registration W-2 Online Filing Forms W-2 Electronically (EFW2) Filing Forms W-2 by Paper AccuWage The Social Security Number Verification Service (SSNVS)
This webinar qualifies for up to 2 Federal Tax CE Credits through the
IRS Approved CE Provider Program. Other payroll and tax professionals may qualify depending on the requirements of their organizations.
Choice of Dates and Times
This 2-hour webinar will be repeated on 2 different dates:
Thursday, November 2, 2017 Thursday, December 7, 2017 (offered with closed captioning*)
To register, click on the date above.
Times for both dates are:
1 pm Eastern | 12 pm Central | 11 am Mountain | 10 am Pacific | 9 am Alaska | 7 am Hawaii
Before registering, be sure your spam filter is set to accept email from our webinar provider – please add BOTH of the following to your “safe sender” email list: [email protected] and [email protected] If you have any problems registering, contact us directly at [email protected].
*Closed captioning displays the words that describe the audio portion of the program for viewers who are deaf or hard of hearing. Captions are available in English only.
Save money and avoid errors! Payroll and tax professionals are invited to attend a FREE webinar on employment
tax updates and reminders.