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Payroll Services of Iowa - News
Updated: September 28, 2005
From the SSA/IRS Reporter:
Suggestions for 2005 year end:
Ask employees to review their pay stubs for the accuracy of the name,
address social security number and which state tax is being withheld
for
By December 1, remind employees to review their W-4 status and to file
a new W-4 if their withholding allowances or filing status will change
in 2006
Remind employees that that if they want to continue claiming exemption
form withholding they need to file a new W-4 by February 15, 2006
Employees who want to continue to receive Advanced Earned Income
Credit Payments must submit a new W-5 by December 31, 2005
Updated: September 12, 2005
Standard Mileage Rate Raised
Effective Sept. 1
The optional
standard mileage rates for the final four months of 2005 will be 48.5
cents—up from the 40.5 cent rate in effect for the first eight months
of 2005, according to Internal Revenue Service IR 2005-99, issued
Sept. 9.
The new rate, often used by employers to calculate tax-free
reimbursements to employees for business use of personal automobiles,
is in effect for all business miles driven between Sept. 1 and Dec.
31, IRS Commissioner Mark Everson told reporters in a telephone news
conference.
The new four-month rate for computing deductible medical or
moving expenses will be 22 cents a mile, up from 15 cents for the
first eight months of 2005.
The rate charitable organizations will use is set by statute,
not the IRS, and remains at 14 cents a mile, Everson said.
Updated: June 30, 2005
Direct Deposit- Iowa Law
effective July 1, 2005
Iowa employers
will be allowed to require new employees to sign up for direct deposit
of their pay as a condition of their hire. The new employee selects
the financial institution to which the direct deposit will be made.
The employer must give the employee a statement on every payday
showing the hours the employee worked, the wages earned by the
employee and the deductions taken from the paycheck. The statement
provided can be electronic as long as the employee has free and
unrestricted access to a printer to print the statement.
The employer can
not require direct deposit for new employees if:
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the employer charges a fee
to the employee for the direct deposit
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a labor union contract
between the employer and the union prohibits the sign-up for direct
deposit
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the costs to the new
employee of setting up direct deposit would reduce his/her pay to
less than minimum wage
Updated: February 8, 2005
New Hire Reporting
All states have different requirements when it comes
to new hire reporting. The state of Iowa requires the filing of the
Centralized Employee Registry Reporting Form. An employer doing
business in Iowa who hires or rehires an employee must complete this
section. The top part of the form must be mailed within 15 days of
hire to: Centralized Employee Registry, P.O. Box 10322, Des Moines, IA
50306-0322. The form can also be faxed to: 1-800-759-5881. The form
can be found online at
http://www.state.ia.us/tax/forms/44019.pdf, or completed online at
https://secure.dhs.state.ia.us/icer/.
This information is needed for income withholding and
garnishment purposes.
Updated: February 4, 2005
2005 W-4 changes
There is a new 2005 W-4 form available at the IRS
website:
http://www.irs.gov/pub/irs-pdf/fw4.pdf
Here are some updates:
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There is now a statement below the W-4 form’s title
that says “Whether you are entitled to claim a certain number of
allowances of exemption from withholding is subject to review by the
IRS. Your employer may be required to send a copy of this form to
the IRS.”
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The statements that certifies the employee signature
now says “Under penalties of perjury, I declare that I have examined
this certificate and to the best of my knowledge and belief it is
true, correct and complete.” If employees are allowed by you to
submit forms W-4 to you electronically you need to update the form
to show the new wording. The form is not valid unless it is signed.
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The 2005 standard deductions for married filing
jointly or qualified widower are $10000, head of household $7300,
and single or married filing separately $5000.
Employees who claimed exempt on their 2004 W-4 form
and want to continue that exemption need to file a new W-4 claiming
exemption by February 15, 2005. They need to complete boxes 1, 2 ,3, 4
and 7 and sign the form. If the W-4 expires and you don’t receive a
2005 update, you are to withhold at single claiming 0 allowances.
Payroll Services of Iowa will publish certain special interest
documents to this location. Please be sure to return to this
page frequently to check for updates. Some documents may require
the Adobe Reader software, which you can download FREE at the
Adobe website, or use the
convenient link below.
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