Goverment Updates Report
Early 2020 Goverment Updates:
- On January 9, a New York appellate court sided with the NY State Department of Labor on the agency's burdensome payroll card regulations. The regulations are in effect, though the state may not have been enforcing them during litigation . It is uncertain whether the case will be appealed to the state Court of Appeals.
- NYS salary threshold for exempt employees has increased again.
To qualify for the administrative and executive exemptions, workers must make at least $885 per week($46020 per year) , on and after December 31, 2019
After 12/31/2020, the threshold will be rise to $937.50 per week($48750 a year)
New York City, Nassau, Suffolk and Westchester counties have their own separate salary thresholds.
- NYS PFL – max raised to $196.72 must be deducted annually
Each pay period, .27% of an employee's gross wages should be withheld for the program until the annual cap is reached.
Those who earn less than the Statewide Average Weekly Wage of $1401.17 will contribute less than the maximum over the course of the year.
The states paid family leave website has sample notification that can be used to distribute to workers explaining the deduction.
- The IRS has a webinar that is now posted to the IRS video portal
Understanding the 2020Form W-4 and How to use it to Calculate Witholding Webinar
It is an hour long webinar that covers
Reasons for a new design of the W-4
Explantation of Steps 1-5 of the 2020 Form W-4
Explanation of who must use it
Illusttration of how to complete two of the five worksheets from Publication 15-T
Recorded Q&A session
- The IRS has reintroduced from 1099_NEC for all payments related to nonemployee compensation made after 12/31/2019. The Form 1099-Misc will no longer have an entry for NEC.
Box 1. Nonemployee Compensation
Enter nonemployee compensation (NEC) of $600 or more. Include fees, commissions, prizes and awards for services performed as a nonemployee, other forms of compensation for services performed for your trade or business by an individual who is not your employee, and fish purchases for cash. Include oil and gas payments for a working interest, whether or not services are performed. Also include expenses incurred for the use of an entertainment facility that you treat as compensation to a nonemployee. Federal executive agencies that make payments to vendors for services, including payments to corporations, must report the payments in this box. See Rev. Rul. 2003-66.
What is NEC?
If the following four conditions are met, you must generally report a payment as NEC.
- You made the payment to someone who is not your employee.
- You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).
- You made the payment to an individual, partnership, estate, or, in some cases, a corporation.
- You made payments to the payee of at least $600 during the year.