Update from Domingo Castillo @ U.S Department of Labor Wage & Hour Division

I want to share the following updates under the FLSA.   The New Overtime Rule went into effect on January 1, 2020, additional information can be found here https://www.dol.gov/agencies/whd/overtime/2019/index.   The Regular Rate Final Rule went into effect on January 15, 2020.  To gain guidance in determining the regular rate click here https://www.dol.gov/agencies/whd/overtime/2019-regular-rate.   And

IRS Issues 2020 Version of IRS Publication 15-B (Employer’s Tax Guide to Fringe Benefits)

The IRS has issued the 2020 version of Publication 15-B (Employer’s Tax Guide to Fringe Benefits). The “What’s New” section of the publication includes information on the 2020 business mileage rate under the “cents-per-mile rule” (see Business Mileage Rate Decreasing in 2020, 1/02/2020), the monthly exclusion for qualified parking and commuter transportation benefits (see Payroll Guide ¶

IRS Issues 2020 Withholding Tables

IRS Publication 15-T (Federal Income Tax Withholding Methods) has been finalized. The publication includes 2020 percentage method and wage bracket withholding tables, withholding adjustments for nonresident alien computations, alternative methods for figuring withholding, and the tables for withholding on distributions of Indian gaming profits to tribal members. Withholding calculations are quite different than in previous years due

IRS Issues 2020 Versions of Publication 15 (Employer’s Tax Guide, Circular E) and 15-A (Supplemental Tax Guide)

The IRS has issued the 2020 versions of Publication 15 ((Circular E) Employer’s Tax Guide) and Publication 15-A (Employer’s Supplemental Tax Guide). Publication 15. This publication provides guidance on the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. The publication also includes information on the forms that employers must give to employees and that employees must give to

IRS Explains How to Compute 2020 Withholding for New Employees Who Do Not Provide a W-4 Form  

During the December 5 IRS payroll community telephone conference call, a representative from the IRS addressed a topic creating some confusion in the payroll industry; namely, how to compute federal withholding in 2020 for a new employee who fails to submit a Form W-4 (Employee’s Withholding Certificate). Currently, if a new employee fails to submit a

Lock-In Letter Procedures to Change in 2020 Due to Issuance of New Form W-4

During the December 5 IRS payroll industry telephone conference call, Walter Steele, Senior Analyst with the IRS Withholding Compliance Program, answered some questions that the IRS has received on lock-in letters as a result of changes to Form W-4 beginning in 2020. Background. The IRS reviews W-2 information to determine whether there has been serious underwithholding. If so, the IRS may issue