LEGISLATIVE UPDATES BY STATE

Transcription

1 LEGISLATIVE UPDATES BY STATE Alabama Income Tax Withholding Effective Jan. 1 through March 30, 2017, the interest rate on tax underpayments remains at 4 percent. Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.65 percent to 6.8 percent. Alaska Unemployment Insurance Effective for 2017, the taxable wage base is $39,800, tax rates for experienced employers range from 1 percent to 1.73 percent, rates for new employers range from 1.25 percent to 1.73 percent, and employees are assessed an unemployment tax rate of 0.5 Arizona Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.04 percent to percent. California Dispute Resolution Effective Jan. 1, 2017, employers can't require employees, who primarily reside and work in California, to adjudicate in-state claims outside the state or to waive the substantive protections of state law regarding in-state disputes. This prohibition applies to contracts entered into, modified or extended on or after Jan. 1, 2017, except those with employees who are individually represented by legal counsel in negotiating the venue or forum for adjudicating employment contract disputes or the choice of law to be applied. Temporary Disability Insurance Effective for 2017, a tax rate of 4.55 percent applies to employers, partners and self-employed persons who choose to be covered by California s temporary disability insurance program. Arrest and Conviction Records Effective Jan. 1, 2017, employers can t ask applicants to disclose certain information about their interactions with juvenile court law. Employers also can t seek related records or use these records as a factor in determining conditions of employment. Employment Eligibility Verification Effective Jan. 1, 2017, employers can t request or refuse to honor certain documents during the federal Form I-9 process. They also can t reinvestigate or reverify employees work authorization using unfair immigration-related practices. Delaware Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.3 percent to 8.2 percent, and rates for new employers range from 1.7 percent to 8.2 percent. District of Columbia Income Tax Withholding On Dec. 30, 2016, the District of Columbia Office of Tax and Revenue released its 2017 income tax withholding tables.

2 Colorado Income Tax Withholding On Dec. 30, 2016, the Colorado Department of Revenue released its 2017 income tax withholding tables. Florida Medical Marijuana Use Effective January 3, 2017, Florida permits medical marijuana use for individuals with debilitating conditions as determined by a licensed physician. However, the measure does not require an employer to accommodate workplace marijuana use. Georgia Income Tax Withholding On Dec. 30, 2016, the Georgia Department of Revenue issued its 2017 income tax withholding tables. Hawaii Temporary Disability Insurance Effective for 2017, the weekly taxable wage base is $1, Unemployment Insurance Effective for 2017, the taxable wage base is $44,000, tax rates for experienced employers range from zero to 5.6 percent and the rate for new employers is 2.4 percent. Health Insurance Marketplaces On Dec. 30, 2016, the federal Department of Health and Human Services approved part of Hawaii s request for a five-year waiver from the federal Affordable Care Act s requirement to establish a Small Business Health Options Program and the law s requirements for the small business marketplace. Illinois Income Tax Withholding On Dec. 14, 2016, the Illinois Department of Revenue released its 2017 income tax withholding tables. The exemption allowance remains at $2.175 and the flat withholding rate remains at 3.75 percent for Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.55 percent to 7.35 percent with the inclusion of a fund-building surtax of 0.55 percent, and rates for new employers range from 3.45 percent to 3.65 percent. Indiana Unemployment Insurance Effective for 2017, the absence of interest or solvency surcharges leaves experienced employers total tax rates equal to their basic rates, ranging from 0.5 percent to 3.8 percent for positive-rated employers and from 4.9 percent to 7.4 percent for negative-rated employers. Kentucky Unemployment Insurance Effective for 2017, the taxable wage base remains at $10,200. Louisiana Income Tax Withholding Effective for 2017, the interest rate on tax underpayments is 7.25 percent. Maine Income Tax Withholding On Dec. 8, 2016, the Maine Revenue Services released state income tax withholding tables for 2017, including a new tax bracket of percent for annual income exceeding $200,000. The annual personal exemption remains at $4,050 and the supplemental withholding rate remains at 5 percent. Unemployment Insurance Effective for 2017, the maximum tax rate for positive-rated experienced employers and minimum tax rate for negative-rated experienced employers is 4.03 percent, which is applicable for employers assigned to Rate Group 19.

3 Income Tax Withholding On Dec. 8, 2016, Maine Revenue Services released withholding tables for 2017, which include a new bracket of percent for annual income over $200,000. The supplemental withholding rate remains 5 percent, and the annual personal exemption remains $4,050. Maryland Income Tax Withholding On Dec. 15, 2016, the Maryland Comptroller s Office released the combined state and county income tax withholding tables for 2017 and updated county tax rates, which range from 1.75 percent to 3.2 percent. The nonresident tax rate remains 1.75 percent. Massachusetts Income Tax Withholding On Dec. 14, 2016, the Massachusetts Department of Revenue announced that the 2017 monthly exclusion amount increases to $135 for transit passes and commuter highway vehicle transportation and remains at $255 for employer-provided parking. In addition, the interest rate on tax underpayments remains at 5 percent for Jan. 1 through March 31, Unemployment Insurance Effective for 2017, experienced and new employers are required to pay a solvency assessment of 0.73 percent and a workforce training fund contribution of percent. In addition, a new method applies for determining employer medical assistance contribution rates. Minnesota Income Tax Withholding Effective for 2017, the interest rate on tax underpayments is 4 percent. Missouri Income Tax Withholding On Dec. 16, 2016, the Missouri Department of Revenue released the income tax withholding formula for The annual allowance remains $2,100, the withholding rate for supplemental income remains 6 percent, and the standard deduction increases from $6,300 to $6,350. Montana Unemployment Insurance Effective for 2017, tax rates for experienced employers generally range from zero to 6.12 percent and tax rates for new employers range from 1 percent to 2.5 percent. Nevada Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.3 percent to 5.4 percent and the tax rate for new employers is 3 percent. Bond assessment rates for experienced employers range from 0.17 percent to 0.89 percent and the bond assessment rate for new employers is 0.29 percent. New Hampshire Unemployment Insurance Effective Jan. 1 through March 31, 2017, tax rates for experienced employers range from 0.1 percent to 1.7 percent for those with a positive rating and 3.3 percent to 7.5 percent for those with a negative rating. The tax rate for new employers is 1.7 percent. New Mexico Unemployment Insurance Effective for 2017, tax rates range from 0.33 percent to 5.4 percent for experienced employers that aren t assessed an excess claims premium. For new employers, tax rates range from 1 percent to 2.82 percent.

4 New York Minimum Wage Effective Dec. 31, 2016, the statewide hourly minimum wage increases from $9 to $9.70, and higher rates apply in Long Island and Westchester ($9.70) and in New York City ($10.50 for employers with 10 workers or fewer and $11 for employers with at least 11 workers), according to a notice in the Dec. 28, 2016, New York State Register. North Dakota Income Tax Withholding On Dec. 15, 2016, Bloomberg BNA confirmed with the North Dakota Office of State Tax Commissioner that employers must file annual returns and state copies of W-2 forms by Jan. 31, starting with tax year 2016 forms filed in Unemployment Insurance Effective for 2017, the taxable wage base is $35,100, tax rates for experienced employers range from 0.49 percent to percent, and rates for new employers range from 2.34 percent to percent. Income Tax Withholding On Dec. 29, 2016, the North Dakota Office of State Tax Commissioner released its 2017 income tax withholding rates and instructions. Ohio Income Tax Withholding On Dec. 7, 2016, the Ohio Department of Taxation announced that the due date for state Form IT-3 is Jan. 31, starting with tax year 2016 forms filed in Unemployment Insurance Effective for 2018, the mutualized tax isn t in effect. Minimum Wage On Dec. 19, 2016, Gov. John Kasich (R) signed a law barring cities and counties from establishing local minimum wage rates; requiring employers to provide benefits, such as health insurance or paid leave; and regulating how and when employers schedule workers shifts. Oklahoma Income Tax Withholding On Dec. 9, 2016, the Oklahoma Tax Commission released state income tax withholding tables for The annual allowance remains at $1,000 and the flat supplemental withholding rate remains at 5 percent. Oregon Income Tax Withholding On Dec. 20, 2016, the Oregon Department of Revenue released its 2017 income tax withholding formulas. Rhode Island Income Tax Withholding On Dec. 13, 2016 the Rhode Island Division of Taxation released state income tax withholding tables for The withholding rate for supplemental wages remains at 5.99 percent and the annual withholding exemption remains at $1,000. Tennessee Unemployment Insurance Effective for 2017, the taxable wage base is $8,000. Effective Jan. 1 through June 30, 2017, tax rates for experienced employers range from 0.01 percent to 10 percent. Texas Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.59 percent to 8.21 percent, and the rate for new employers is 2.7 percent. In addition, experienced employers are assessed a bond obligation assessment and deficit tax.

5 Vermont Income Tax Withholding On Dec. 15, 2016, the Vermont Department of Taxes released its 2017 percentage method withholding tables, and the annual allowance remains $4,050. Unemployment Insurance Effective for 2017, quarterly health care contributions from applicable experienced employers and new employers are assessed with unemployment taxes in the amount of $ multiplied by the number of uncovered full-time equivalent employees minus four. Virginia Income Tax Withholding Effective Jan. 1 through March 31, 2017, the interest rate on tax underpayments remains at 6 percent. Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.13 percent to 6.23 percent, the standard tax rate for new employers is 2.53 percent and the tax rate for new employers that are out-of-state contractors is 6.23 percent. West Virginia Income Tax Withholding Effective for 2017, the interest rate on tax underpayments is 8 percent. Washington Unemployment Insurance Effective for 2017, tax rates for experienced employers range from 0.13 percent to 5.72 percent. In addition, the tax rate for new employers is generally equal to 90 percent of the applicable average for employers in their industry category.