A special report was recently released by National Taxpayer Advocate (NTA) Nina E. Olson on the Earned Income Tax Credit (EITC), which makes recommendations designed to increase the participation rate of eligible taxpayers and reduce overclaims by ineligible taxpayers [IR 2019-123, 7/10/19]. Background. The EITC is a tax credit available to low-income employees. The credit reduces
IRS Expands List of Preventative Care for Chronic Conditions Eligible for HSA Benefits The IRS has issued guidance on health savings accounts (HSAs) that expands the list of preventive care for HSA participants for certain care for chronic conditions that can be provided under a high deductible health plan. The Treasury Department and the IRS,
How to Get — and Stay — Ahead With Payroll Classes Whether you’re fresh out of school or a payroll expert, professional development can seem like a never-ending journey. From basic PayTrain Fundamentals to global payroll operations, there are myriad courses that might have value to your career. And then there are classes to get
The IRS has issued final regulations that permit employers to voluntarily truncate employee Social Security Numbers (SSNs) on copies of Forms W-2 (Employee’s Wage and Tax Statement) that are furnished to employees [TD 9861]. Proposed regulations. On Sept. 20, 2017, the IRS issued proposed regulations that would allow employee SSNs to be truncated on the copy
President Signs IRS Reform Bill, the Taxpayer First Act On July 1, President Trump signed the IRS reform bill, H.R. 3151, the Taxpayer First Act (the Act). The Act includes provisions to improve customer service, provide a process of assisting taxpayers with appeals, increase certain penalties, and update electronic filing requirements. To combat identity theft and fraud,
The IRS has issued a draft version of new Publication 15-T (Federal Income Tax Withholding Methods) for the 2020 tax year that contains a first look at the new employer steps to figure federal income tax withholding. Background. A heavily revised Form W-4 has been in the works from the IRS since the enactment of the Tax Cuts and
IRS Issues Draft Version of 2020 Form W-4 On May 31, the IRS issued an early release draft version of the 2020 Form W-4 (Employee’s Withholding Allowance Certificate) [IR-2019-98, 5/31/19]. Background. As a result of the enactment of the Tax Cuts and Jobs Act (TCJA) in late-December 2017, significant changes to Form W-4 were required. The IRS postponed a
2019 U.S. Department of Labor Informational & Outreach Forum The U.S. Department of Labor (DOL), in partnership with the Southern Methodist University, invites you to attend this free informational and outreach forum. The event will include an introduction to and an overview of several DOL & Non-DOL Agencies regarding their missions, responsibilities and functions. The
During the May 2 IRS payroll industry telephone conference call, Scott Mezistrano, IRS Industry Stakeholder Engagement and Strategy, provided an update for the 2020 version of Form W-4 (Employee’s Withholding Statement). As a result of the enactment of the Tax Cuts and Jobs Act (TCJA) in late-December 2017, significant changes to the Form W-4 must take
Proposed Overtime Rules Update The Department of Labor has received over 54,000 comments on proposed changes to the overtime rules. Currently the rules to qualify for the FLSA overtime exemption an employee must: (1) “employed in a bona fide executive, administrative, or professional (EAP) capacity,” (2) salaried; (3) paid more than the standard salary level