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2019 Payroll Update

 

2019 Payroll Update

Dec 18, 2018

As a service to you, we are pleased to provide this list of updates and reminders regarding payroll. The information below includes federal updates; however, some state-specific information has also been included. If your state information is not provided, please contact your Wipfli relationship executive with any specific questions. 

All California Updates

All Colorado Updates

All Delaware Updates

All Idaho Updates

All Illinois Updates

All Maine Updates

All Maryland Updates

All Michigan Updates

All Minnesota Updates

All Montana Updates

All New Jersey Updates

All Pennsylvania Updates

All Virginia Updates

All Utah Updates

All Washington Updates

All Wisconsin Updates

Social Security and Medicare Wage Bases and Rates

The wage base subject to social security will increase to $132,900 for 2019. There is no limit for the wages subject to Medicare tax. The employer and employee FICA tax rate will remain at 7.65%, (social security rate at 6.2%, and Medicare rate at 1.45%). Wages paid in excess of $200,000 per employee in 2019 will be subject to an additional 0.9% Medicare tax that will be withheld only from the employees’ wages. Employers will not have to match the additional tax. If the employer does not withhold the additional tax from the employees affected and does not deposit it, the employer will be subject to penalties for failure to withhold the tax.

Earnings Allowed When Receiving Social Security Benefits

Social security recipients who are under full retirement age can earn up to $17,640 in 2019 (increased from 2018). One dollar in benefits will be withheld for every two dollars in earnings above $17,640.

Retirees who attain full retirement age in 2019 will lose $1 dollar in benefits for every $3 dollars earned above $46,920 (increased from 2018), but only on earnings earned before the month in which they reach full retirement age. There is no limit on earnings beginning the month an individual reaches full retirement age. To find an individual’s full retirement age, go to https://www.ssa.gov/planners/retire/ageincrease.html

Retirement Plan Limits

The maximum annual elective deferral an employee may make to a Section 401(k) or 403(b) plan will increase to $19,000 for 2019 from $18,500 in 2018.

The SIMPLE elective contribution limit will increase to $13,000 for 2019 from $12,500 in 2018.

The IRA annual contribution limit will increase to $6,000 for 2019 from $5,500 in 2018.

Catch-Up Contributions - Individuals who have attained age 50 before the close of the plan year and would otherwise be precluded from making any additional elective contributions will be permitted to make additional contributions for 2019 as follows:

  • The 401(k) and 403(b) catch-up will remain unchanged at $6,000
  • The SIMPLE catch-up will remain unchanged at $3,000
  • The IRA catch-up will remain unchanged at $1,000

Health Savings Account Limits 

The annual contribution limits for health savings accounts (HSA) are as follows for 2019: The maximum annual contribution for self-only coverage is increasing to $3,500. The family coverage maximum annual contribution is increasing to $7,000. The catch-up contribution for an individual age 55 or older will remain at $1,000. You cannot contribute to an HSA if you are enrolled in Medicare.

Mileage Reimbursement 

The standard business mileage rates for 2019 have increased to 58 cents per mile from 54.5 cents per mile in 2018.

Unemployment Wage Base and Rate

The federal unemployment taxable wage base for 2019 will remain at $7,000, and the tax rate will remain at the current net rate of 0.6% for most employers.

The minimum threshold for quarterly FUTA tax deposits will remain at $500.

Form W-2 Due Dates Have Changed

  • Each employee who was paid wages in 2018 should receive a Form W-2 that is postmarked by January 31, 2019.
  • Employers filing paper W-2s must submit them to the Social Security Administration (SSA) by January 31, 2019. If you e-file the forms, the due date is January 31.
  • All employers that file 250 or more Forms W-2 for the tax year 2018 are mandated to file these forms electronically with the SSA by January 31, 2019.
  • Extension of Time to File Form W-2 with the SSA
    • For Form W-2 filings due after 2016, an automatic extension of time to file Form W-2 with the SSA is not available. An employer that meets certain criteria can request one 30-day extension of time to file Forms W-2 by submitting a Form 8809 (Application for Extension of Time to File Information Returns) with the IRS [Temp. Reg. 1.6081-8T(b)]. On the Form 8809, the employer must explain why it needs additional time by checking a box to indicate it meets one of the following requirements:
    • The business suffered a catastrophic event in a Presidentially declared disaster area that made the business unable to resume operations or made necessary records unavailable.
    • Fire, casualty, or natural disaster affected the operation of the business.
    • Death, serious illness, or unavoidable absence of the individual responsible for filing the information returns affected the operation of the business.
    • The business was in its first year of establishment.
  • No additional extensions of time for filing Forms W-2 with the SSA are permitted. Form 8809 must be signed under penalties of perjury and filed no later than the due date of Form W-2 (i.e., January 31). It cannot be used to request additional time for submitting the forms to the employees. However, the IRS encourages employers to file Form 8809 as soon as it is known an extension of time to file is necessary, instead of waiting until the due date of the form.

Third-Party Sick Pay Recap Reporting 

Either the employer or the insurance company or agent will be required to file Form 8922, Third-Party Sick Pay Recap, if the employer is not issuing the sick pay W-2. The Internal Revenue Service (IRS) uses this form to reconcile Forms 941 with Forms W-2 for the year. The recap form should be filed with the IRS and is due February 28, 2018.

W-2 Verification Code Program

The IRS is expanding its initiative to verify W-2 authenticity. The program’s purpose is to test data on the W-2 using a validated verification code. A 16-digit code and a new verification code field will appear on a limited number of Form W-2 copies given to employees (copies B and C) by certain payroll service providers that have partnered with the IRS. Approximately 60 million Forms W-2 will have verification codes on them in 2018, increased from 50 million in 2017.

FLSA Overtime Rule Delayed

On Tuesday, November 22, 2016, a U.S. district court judge issued an injunction delaying the new overtime rule from going into effect on December 1, 2016. This came in response to an emergency motion filed by 21 states and many business groups citing that the rule was unlawful and that the Department of Labor exceeded its authority under the FLSA. Therefore, the current rate will remain in effect until the court determines the Department of Labor’s authority to make the final rule, as well as the rule’s validity. If you have any questions regarding this, please contact your Wipfli relationship executive.

Current Version of Form I-9 May Be Used through January 21, 2019

Employers should continue using the Form I-9 with an August 31, 2019, expiration date until further notice.

Affordable Care Act (ACA) Reporting

Applicable large employers (companies employing 50 or more full-time employees, including full-time equivalents during the previous calendar year) are required to file a transmittal Form 1094-C and information return Form 1095-C to report the required information about offers of health coverage, and if they sponsor a self-insured plan, they must also report those individuals enrolled in their health plan.

Employers that sponsor self-funded insured group health plans and employ fewer than 50 employees are not subject to the employer shared responsibility provisions. These employers will use Forms 1094-B and 1095-B to report information about their covered individuals.

Form 1095-C for 2018 must be provided to the employee by March 4, 2019. Forms 1094-C and 1095‑C should be filed with the IRS by February 28, 2019, if submitting on paper or by April 1, 2019, if filing electronically. Filers of 250 or more Forms 1095-C must file electronically.

If you need assistance with ACA reporting, please contact your Wipfli relationship executive.

Employer Reimbursement of Individual Health Insurance Premiums

Because of the ACA market reform requirements, employers may no longer pay for or reimburse employees for individual health insurance policies when there is more than one employee participating in the plan. If an employer reimburses individual policy premiums, they are subject to the $100/day market reform penalty per employee.

Employers can, however, provide a tax-free fringe benefit by purchasing an ACA-approved, employer-sponsored group health plan. This type of plan can be provided through the SHOP Marketplace for small employers with 50 or fewer employees. A cafeteria plan can be set up for pretax funding of the employee portion of the premium.

Another acceptable alternative would be to increase the employee’s taxable wages so that the employee can choose to pay for an individual insurance policy. It would not be acceptable to provide a higher pay increase for those with family coverage vs. single coverage or those without health insurance coverage, nor could the employer require the funds to be used for health insurance.

If you are an S corporation and pay for or reimburse a greater-than-2% shareholder for an individual health policy, please contact your Wipfli relationship executive.

Employer-Provided Health Care Coverage Reporting 

Form W-2 reporting of the aggregate cost (employee and employer portions) of health care coverage under an employer-sponsored group (or self-insured) health plan is required for employers that filed 250 or more W-2s for 2018. The aggregate cost of the health care coverage is reported in Box 12 of the Form W-2, labeled with code DD. This amount is for informational purposes only and is not included in the employee’s taxable income. There is no reporting requirement on the Form W-3 of the total of these amounts.

Reporting of the cost of coverage is optional in 2018 for employers that were required to file fewer than 250 Forms W-2 in 2018.

Health Flexible Spending Account (FSA) Contribution Limit 

The dollar limitation for contributions to a health FSA is increasing to $2,700 for 2019.

FSA Options - With the use-or-lose provision, participating employees must incur all eligible expenses by the end of the plan year or forfeit any unspent amounts. Under a special rule, employers may offer participating employees more time to incur eligible expenses through either the carryover option or grace period option. An employee can carryover up to $500 of unused funds to the next plan year under the carry over option if the cafeteria plan allows for this option. Alternatively, an employee has until two and a half months after the end of the plan year to incur eligible expenses if the plan allows the grace period option. Employers can offer either option, but not both, or they can offer neither. If you have questions or would like Wipfli to assist you in amending your plan, please contact your Wipfli relationship executive.

Income Tax Withholding Tables

The 2019 federal withholding tax tables have been released on December 17, 2018 for 2019. The mandatory flat rate on supplemental wage payments exceeding $1,000,000 to one employee during the calendar year is 37%. The optional flat rate on supplemental wages paid in 2019 is 22%.

Minimum Wage Rates 

Federal - The basic minimum wage will remain at $7.25 per hour for 2019 for covered employers. These employers include:

  • Businesses producing or handling goods for interstate commerce.
  • Businesses with $500,000 in annual dollar volume of business.
  • Certain other businesses including federal, state, and local government agencies, hospitals and nursing homes, and private and public schools.

The minimum wage for federal contract workers for new contracts and replacements for expiring contracts will be increasing to $10.60 per hour effective January 1, 2019, and will remain in effect through December 31, 2019.

When an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum rates.

Form W-4 - Employee’s Withholding Allowance Certificate

A new Form W-4 for 2019 must be completed by an employee on or before February 17, 2020, if he or she had requested total exemption from withholding in 2019 and wishes to claim total exemption again in 2020. A claim of exemption from withholding lasts for only one calendar year. If an employee does not submit a new W-4, the employer must begin to withhold as if the employee were single with zero withholding allowances.

A new Form W-4 should also be completed if the employee requests changes in filing status and/or number of allowances throughout the year.

The IRS may request the employer to submit specified W-4s for review or make them available for inspection by an IRS employee.

Domestic Employers 

You are not required to withhold federal income tax from wages you pay a household employee. The 2019 limits have not been published yet. However, if cash wages of $2,100 or more are paid during 2018 to any household (domestic) employee, the wages are subject to FICA taxes. If total cash wages (of all household employees) of $1,000 or more are paid in any calendar quarter, the wages are subject to FUTA taxes.

Fringe Benefits 

Some examples of fringe benefits that need to be added to the Form W-2 are personal use of company auto, the cost of group term life insurance over $50,000, fringe benefits paid to shareholders of S corporations, and the value of health care for an adult child.

  • Amounts for personal use of company auto are taxable for FICA, federal/state withholding, and federal/state unemployment.  
  • The cost of group term life insurance over $50,000 is taxable only for FICA and federal/state withholding and is included in Box 12, identified as Code “C” on Form W-2. However, greater-than-2% shareholders of an S corporation do not receive the $50,000 exclusion. They are taxed on the full amount of the policy.

An employer can choose not to withhold income tax on the value of the personal use of a company vehicle and group term life insurance, but the employer must notify the employee if this choice is made.

The value of health benefits (including HSA-employer contributions and long-term care insurance) provided to a greater-than-2% shareholder of an S corporation must be included in the employee’s wages subject to federal and Wisconsin income tax withholding (Boxes 1 and 16 on Form W-2). However, the value of these benefits is excluded from wages subject to social security, Medicare, FUTA, and SUTA taxes, provided these premiums are part of an employer-sponsored plan that covers all employees. Please note that individual states may vary in taxation of these benefits.

Employers are not required to include the fair market value of health, vision, or dental insurance coverage for adult children in gross income for federal or state tax purposes in 2018 as long as the adult child has not turned 27 by the end of the calendar year.

There are additional fringe benefits that are typically excluded from taxable income unless limits are exceeded. Some examples are:

  • Achievement awards
  • Dependent care assistance
  • Educational assistance
  • Employee discounts

Additional information can be found on these and other fringe benefits at www.irs.gov in Publication 15-B. If you have disability policies, it may be possible with proper planning, to exclude from taxable income the disability benefits you receive. Please contact your Wipfli relationship executive for details.

S-Corporation Shareholders, Partners, and LLC Members

Special fringe benefit rules apply to S corporations and shareholders who owned more than 2% of the corporation’s outstanding stock on any day during the tax year, considering both direct and constructive ownership. Current IRS regulations require that amounts paid by an S corporation for accident and health insurance covering a greater-than-2% shareholder/employee (including dependent coverage) must be reported as gross wages on his or her Form W-2, Wage and Tax Statement.

Note: Partners, LLC members, and greater-than-2% shareholders are not eligible to participate in your Section 125 plan. Please contact your Wipfli relationship executive for details.

2019 Payroll Update: State Information

California

Unemployment Wage Base, Rate, and Wage Reporting

The state unemployment insurance (SUI) taxable wage base will remain at $7,000 for calendar year 2019. The new employer rate will remain at 3.4%. Rates range from 1.5% to 6.2%. Employers may not make voluntary contributions to lower their 2019 unemployment tax rate. Tax rate notices will be mailed to employers in December.           

The Employment Training Tax (ETT) rate for 2019 will remain at 0.1%. The ETT taxable wage limit will remain at $7,000 per employee, per calendar year. 

The State Disability Insurance (SDI) withholding rate for 2019 will increase to 1.0%. The wage limit for 2019 is $118,371 per employee, per calendar year. 

Employers are required to electronically file and pay.

Form W-2 Information

No filing of Forms W-2 is required to the state of California.  Employers must file Quarterly Contribution Returns and Report of Wages (DE 9C)

Minimum Wage Rate

Effective January 1, 2019, the minimum wage rate will increase to $12.00 per hour for workers at businesses with 26 or more employees and $11.00 per hour for workers at small businesses (25 or fewer employees). Tipped employee minimum wage will increase to $12.00 as well.  Certain local jurisdictions impose separate minimum wage rates.

State New Hire Reporting

Employers must report new hires and rehires within 20 days of hire date using Form DE34 or equivalent using these methods: online at https://www.edd.ca.gov/payroll_taxes/new_hire_reporting.htm; by fax at 916.319.4400; or by mail to Employment Development Dept., P.O. Box 997016, West Sacramento, CA, 95799. 

Colorado

Unemployment Wage Base, Rate, and Wage Reporting

The state unemployment will increase to $13,100 for calendar year 2019.

Form W-2 Information

Employers are required to also submit an annual information return and W-2s to the Colorado Department of Revenue. W-2s must be filed with the Department and furnished to the employee/payee on or before January 31, 2019.  

Employers can submit these statements to the Department electronically through Revenue Online or submit paper copies (form DR 1093 or DR 1106). Electronic filing is recommended for all employers and required for those with 250 or more employees. However, employers with fewer than 250 employees may choose to file paper W-2s instead of filing electronically.

Minimum Wage Rate

Effective January 1, 2019, the minimum wage rate will increase to $11.10 per hour. The 2019 tipped minimum wage will increase to $8.08 per hour.

State New Hire Reporting

Employers must report new hires and rehires within 20 days of hire date using one of these methods: online at www.newhire.state.co.us; by fax at 303.297.2595; or by mail to P.O. Box 2920, Denver, CO, 80201.

Delaware

Unemployment Wage Base and Rate

The state unemployment insurance (SUI) taxable wage base will remain at $16,500 for calendar year 2019. The new employer rate has not been released for 2019.

Form W-2 Information

W-2s must be filed with Delaware by January 31, 2019, if filing on paper or electronically. Employers required to file their federal W-2 electronically must also submit electronically to Delaware. Delaware form W-3, Annual Reconciliation of Delaware Income Tax Withholding, should be included with paper copies of employee W-2 forms. Federal W-3 forms should not be used.

Income Tax Withholding Tables

No changes have been announced to the withholding tables for 2019.

Minimum Wage Rate

The minimum wage rate will increase from $8.75 to $9.25 per hour effective October 1, 2019.

State New Hire Reporting

Employers must report new hires and rehires within 20 days of hire date using Form W-4 or equivalent to Delaware State Directory of New Hires using one of these methods: online at https://newhire.dhss.delaware.gov/de-Newhire/default.aspx; by fax at 855.481.0047; or by mail to P.O. Box 90370, Atlanta, GA, 30364.

Idaho

Unemployment Wage Base and Rate

The state unemployment insurance (SUI) taxable wage base will increase to $40,000 for 2019.

Form W-2 Information

W-2s must be filed no later than January 31, 2019. You must file Form W-2 electronically if you are required to submit W-2’s electronically for federal purposes. A Form 967, Idaho Annual Withholding Report, should accompany paper copies of employee W-2 forms.

Minimum Wage Rate

The current state minimum wage is $7.25 per hour. The minimum wage for a tipped employee is $3.35 per hour. The minimum wage for new hires under the age of 20 years old is $4.25 per hour, but only for the first 90 consecutive calendar days of employment.

State New Hire Reporting

Employers must report new hires and rehires within 20 days of hire date using Form W-4 or equivalent to Idaho Department of Labor using one of these methods: online at http://labor.idaho.gov/newhire; by fax to 208.332.7411; or by mail to New Hire Reporting, 317 W. Main St., Boise, ID, 83735-0610.

Illinois

Unemployment Wage Base and Rate        

The unemployment taxable wage base will remain at $12,960 in 2019.

Employers with 25 or more employees are required to report unemployment insurance taxable wages electronically on a monthly basis. These medium and large employers will continue to submit quarterly contribution and wage reports but will also be required to submit eight additional monthly wage reports. The employees' names, social security numbers, and total wages for the reporting period will be required on the monthly report. No monthly wage report will be required for the months of March, June, September, and December, since these figures will be included on the quarterly reports filed. Monthly wage reporting must be filed electronically via My Tax Illinois, the Department's online tax filing and wage reporting application.

Form W-2 Information

Forms W-2 must be submitted electronically no later than January 31, 2019 using the SSA EFW2 format.

Minimum Wage Rates

The adult minimum wage rate will remain at $8.25 per hour. Employers may pay $7.75 to anyone under the age of 18. Additional local minimum wage rates may apply.

State New Hire Reporting

Employers must report new hires within 20 days of date of hire to Illinois New Hire Directory using one of these methods: online at https://newhire.hfs.illinois.gov/NewHireWeb/; by fax to 217.557.1947; or by mail to Illinois New Hire Directory, P.O. Box 19473, Springfield, IL, 62794-947.

Maine

Unemployment Wage Base and Rate

The unemployment wage base will remain at $12,000 for 2019.

Form W-2 Information

All employers who withhold Maine income tax from payments to employees must file a year-end reconciliation, Form W-3ME. Unless you have a waiver, Form W-3ME must be filed electronically at http://www.maine.gov/revenue/netfile/gateway2.htm.

Employers and payers issuing 250 or more Forms W-2 must file such forms with Maine Revenue Service (MRS) electronically using the Maine Employers Electronic Tax Reporting System (MEETRS), online at http://www.maine.gov/revenue/magmedia/magmedia.html.

Employers issuing fewer than 250 W-2s may submit data either directly to MRS or to MRS through the IRS under the Combined Federal/State Filing Program but are not required to submit. 

Minimum Wage Rate

The minimum wage rate will increase to $11.00 per hour on January 1, 2019. Tipped employees must receive at least 50% of the state minimum wage per hour.

State New Hire Reporting

Employers must report new hires, rehires and employees returning to work within 20 days to Maine New Hire using one of these methods: online at https://portal.maine.gov/newhire/; by fax to 207.287.6882; or by mail to State House Station 11, 19 Union St., Augusta, ME, 04333.

Maryland

Unemployment Wage Base and Rate

The unemployment wage base will remain at $8,500 for 2019.

Form W-2 Information

Employers must submit their required annual withholding statements in machine-readable or electronic format if the total number of required statements equals or exceeds 25. The electronic format is also required if a lower threshold applies for federal income tax purposes. Annual withholding statements are due January 31, 2019. If the due date falls on a Saturday, Sunday or legal holiday, the statements must be filed by the next business day.

Minimum Wage Rate

The minimum wage rate increased to $10.10 per hour effective July 1, 2018. Tipped employees must receive at least $3.63. Additional local minimum wage rates may apply.

State New Hire Reporting

Employers must report new hires, rehires, and employees returning to work within 20 days to Maryland State Directory of New Hires using one of these methods: https://newhire-reporting.com/md-newhire/default.aspx by fax to either 410.281.6004 or 888.657.3534; or by mail to Maryland State Directory of New Hires, P.O. Box 1316, Baltimore, MD, 21203.

Michigan

Unemployment Wage Base and Rate

The 2019 wage base for employers who are current with all taxes, incurring no late penalties and not reimbursing, is $9,000; otherwise, it is $9,500.

Form W-2 Information

  • Wage statements (e.g., W-2, W-2G, 1099-R, 1099-MISC) are due to Treasury January 31st. The first due date per the Act is January 31, 2019 for 2018 wage statements.
  • Beginning January 2019, employers using MTO will be able to upload wage statements prior to filling Form 5081 (Sales, Use and Withholding Taxes Annual Return).
  • The Act did not change the annual return due date. Form 5081 is still due February 28, 2019.
  • Employers with greater than or equal to 250 employees must file the required Form 5081 electronically.
  • Wage statements should not accompany a mailed Form 5081 filing.         

Minimum Wage Rate

The minimum wage rate will increase to $9.45 per hour on January 1, 2019.

State New Hire Reporting

Employers must report new hires, rehires and employees returning to work within 20 days of hire date using one of these methods: online at https://mi-newhire.com/mi-Newhire/default.aspx; by fax to 877.318.1659; or by mail to Michigan New Hires Operation Center, P.O. Box 85010, Lansing, MI, 48908.

Minnesota

Unemployment Wage Base and Rate

The unemployment taxable wage base will increase to $34,000 in 2019.

Form W-2 Information

For tax year 2018, you must submit W-2s and 1099s electronically if you have more than 10 forms.

W-2s must be filed by January 31, 2019. For more information on electronic filing, go to www.taxes.state.mn.us.

Minimum Wage Rates

  • For larger employers (receipts of $500,000 or more}, the minimum wage will increase to $9.86 on January 1, 2019.
  • For smaller employers (receipts of less than $500,000), the minimum wage will increase to $8.04 on January 1, 2019.
  • The training minimum wage rate that can be paid to employees who are younger than 20 years old during their first 90 consecutive days of employment will increase to $8.04 as of January 1, 2019.
  • A large employer may pay an employee under 18 years of age a rate of $8.04 as of January 1, 2019.
  • Minneapolis has higher minimum wage rates.

State New Hire Reporting

Employers must report new employees, rehires, and employees returning to work within 20 days of hire date using one of these methods: online at https://newhire-reporting.com/mn-newhire/default.aspx; by fax at 1.800.692.4473; or by mail to Minnesota New Hire Reporting Center, P.O. Box 64212, St. Paul, MN, 55164-0212.

Montana

Unemployment Wage Base and Rate

The unemployment taxable wage base will increase to $33,000 in 2019.

Form W-2 Information

Annual withholding reconciliation and W-2s using Montana TransAction Portal (TAP), or by mailing the Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) and related W-2 forms to the address shown on the form.

Forms are due to employees by January 31, 2019.

Minimum Wage Rates

The minimum wage rate will increase to $8.50 per hour effective January 1, 2019. The minimum wage of $8.50 applies also to tipped employees.

State New Hire Reporting

Employers must report new hires and rehires within 20 days of the date the employee is hired or rehired using one of these methods: online at http://dphhs.mt.gov/CSED/employerinfo/newhirereporting; by fax to either 888.272.1990 or 406.444.0745; or by mail to New Hire Directory Specialist, P.O. Box 8013, Helena, MT, 59604-8013.

New Jersey

Unemployment Wage Base and Rate

The employer unemployment taxable wage base will increase to $34,400 for 2019.

Unemployment/disability rates in New Jersey are assigned on a fiscal year basis (i.e., July 1 through June 30). All new employers (except successors) are assigned new employer rates for the first three calendar years, after which a calculated rate is assigned based on employment experience.

Division of Employer Accounts 2019 Rates

New Employer

U.I.

D.I.

W.F./S.W.F.

 

 

0.026825

0.005000

0.001175

0.000000

July 1, 2018, through June 30, 2019

Worker

U.I.

D.I.

W.F./S.W.F.

F.L.I.

 

0.003825

0.0017

0.000425

0.0008

January 1, 2019, through December 31, 2019

Worker — Governmental Reimbursable Employer

U.I.

D.I.

W.F./S.W.F.

F.L.I.

 

0.000825

0.0017

0.000425

0.0008

January 1, 2019, through December 31, 2019


Form W-2 Information

W-2s can be filed either electronically or on paper. Whether submitting on paper or filing electronically, the forms are due to the state by February 28, 2019. Employers are not mandated to file W-2 forms electronically but are encouraged to do so. New Jersey's record specifications for reporting W-2 information via E-file (SFTP) conform to specifications defined by the Social Security Administration. The specifications can also be obtained by calling 609.292.9292. Employee copies are due by February 15, 2019.

Minimum Wage Rate

The minimum wage rate will increase to $8.85 per hour effective January 1, 2019. The tipped minimum wage will remain at $2.13 per hour.

State New Hire Reporting

Employers must report new hires and within 20 days of the date the employee is hired or rehired using one of these methods: online at www.nj-newhire.com; by fax at 1.800.304.4901; or by mail to New Jersey New Hire Reporting Center, P.O. Box 4654, Trenton, NJ, 08650.

Pennsylvania

Unemployment Wage Base and Rate

The taxable wage base for employer contributions will remain at $10,000 for 2019.

Contribution rate notices for 2019 are planned to be mailed to employers on December 31, 2018. Employers can view their rate notice information via the https://www.uctax.pa.gov/ 

employer portal once it is posted.

The employee unemployment tax withholding rate changes to 0.06% (.0006) for all taxable wages for 2019. There is no wage limit, unlike for employer contributions.

All employers are required to electronically file quarterly unemployment tax and wage reports through https://www.uctax.pa.gov/.

Form W-2 Information

W-2s must be filed with Pennsylvania by January 31, 2019. Employers filing 10 or more W-2 wage records must file electronically. A transmittal form, REV-1667, must also be completed and submitted with each W-2 report.

Minimum Wage Rate

The minimum wage rate will remain at $7.25 an hour in 2019. The tipped minimum wage will remain at 2.83 per hour.

State New Hire Reporting

Employers must report new hires and rehires within 20 days of hire date using Form W-4 or the Pennsylvania New Hire Form using one of these methods: online at https://www.pacareerlink.pa.gov; by faxing the information to 1.866.748.4473; or by mailing the form to Commonwealth of Pennsylvania, P.O. Box 69400, Harrisburg, PA 17106-9400.

Virginia

Unemployment Wage Base and Rate

The state unemployment insurance (SUI) taxable wage base will remain at $8,000 for calendar year 2019.

Form W-2 Information

Forms W-2 must be filed by January 31, 2019 and must be submitted electronically unless a hardship waiver is granted.

Minimum Wage Rate

The minimum wage rate will remain $7.25 per hour for 2019. Tipped minimum wage will remain at $2.13 per hour.

State New Hire Reporting

Employers must report new hires and rehires within 20 days of hire date using one of these methods: online at https://va-newhire.com; by fax at 1.800.688.2680; or by mail to Virginia New Hire Reporting Center, P.O. Box 3757, Dublin, OH 43016.

Utah

Unemployment Wage Base and Rate

The unemployment taxable wage base will increase to $35,300 for 2019.

Form W-2 Information

Employers must file an annual reconciliation for each year, or partial year, they have a withholding tax account even if they have no employees or withholding to report for the year.  Annual reconciliations in addition to withholding tax return(s) are required.

The annual reconciliation, form TC-941E and related W-2s with Utah income or withholding, is due January 31 the year after wages were paid and must be filed electronically. If the due date falls on a weekend or holiday, the reconciliation is due the next business day.

Minimum Wage Rates

The general minimum wage rate will remain at $7.25 per hour in 2019. The tipped minimum wage is $2.13 for 2019.

State New Hire Reporting

All new hires, rehires, or employees returning to work must be reported to the within 20 days of their hire or rehire/return date using one of these methods: online at http://jobs.utah.gov/UI/Employer/Login.aspx; by fax at 801.526.4391; or by mail to P.O. Box 45247, Salt Lake City, UT, 84145.

Washington

Unemployment Wage Base and Rate

The unemployment taxable wage base will increase to $49,800 in 2019.

Form W-2 Information

Washington does not impose a state income tax. W-2 reporting is not required.

Minimum Wage Rates

The general and tipped minimum wage rate will increase to $12.00 per hour for 2019. Additional local minimum wage rates may apply.

State New Hire Reporting

All new hires, rehires or employees returning to work must be reported within 20 days of their hire or rehire/return date using one of these methods: https://www.dshs.wa.gov/esa/division-child-support/new-hire-reporting; by fax at 1.800.782.0624; or by mail to P.O. Box 9023, Olympia, WA, 98507.

Wisconsin

Unemployment Wage Base and Rate

The unemployment taxable wage base will remain at $14,000 in 2019.

The new employer rate for non-construction employers with payroll under $500,000 remain at 3.05%; for payrolls of $500,000 or more, the rate will remain at 3.25%. The new employer rate for construction employers will remain at 3.75% for 2019 for payrolls under $500,000 and 3.90% for payrolls greater than $500,000.

Employers with 25 or more employees are required to file their tax report electronically at https://unemployment.wisconsin.gov/SUITESPortalWelcome/EmployerPortalWelcome.aspx?target=TaxWageFilingInfo.aspx

Form W-2 Information

Employers filing 10 or more Forms W-2 are required to submit electronically no later than January 31, 2019. Employers that do not have a Wisconsin withholding tax number and are not required to withhold should enter 036888888888801 in the box titled “Employer State ID Number.” Employers that withheld Wisconsin tax and have an active Wisconsin withholding account number are required to file and pay the tax electronically via their MyTax account. The Form WT-7 must also be filed electronically. You may request an e-filing/e-payment waiver by completing Form EFT-102 if these requirements create an undue hardship.

Minimum Wage Rates

The general minimum wage rate for adults will remain at $7.25 per hour for 2019. The tipped minimum wage will remain at $2.33 per hour.

State New Hire Reporting

All new hires, rehires or employees returning to work must be reported to the Wisconsin New Hire Reporting Center within 20 days of their hire or rehire/return date using one of these methods: online at www.wi-newhire.com; by fax at 1.800.277.8075; or by mail to P.O. Box 14431, Madison, WI, 53708.

We hope you find this information helpful. If you have any questions, please do not hesitate to contact your Wipfli relationship executive. You may also contact any of our payroll specialists located in the following offices:
 
Billings, MT      406-248-1681
Duluth, MN       218-740-3908
Media, PA         610-565-3930
Rockford, IL      815-399-7700
Eau Claire, WI  715-832-3407
Wausau, WI      715-845-3111

This information is provided solely for general guidance and informational purposes and does not create a business or professional services relationship. Accordingly, this information is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal, or other competent advisers. Before making any decision or taking any action, you should obtain appropriate professional guidance.

Author(s)

Keith Koszarek
Keith Koszarek, CPA
Partner
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