Payroll Taxes

In 2017, the District of Columbia passed the Universal Paid Leave Amendment Act of 2016 (the “Act”), which called for the creation of a paid-leave program for private sector employees who work in D.C. Earlier this year, the D.C. Office of Paid Family Leave adopted final regulations to implement this new paid-leave program. One of the most notable requirements implemented by the regulations is the imposition of the Act’s 0.62% payroll tax assessed on employers subject to the Act beginning today, July 1, 2019. Employers subject to the Act will have until July 31, 2019, to file the appropriate return and pay the tax without incurring a penalty.

With this upcoming deadline, employers with employees in D.C. need to determine whether they are subject to this tax, and if they are, timely report and pay the tax to avoid potential penalties.
Continue Reading D.C. Starts Collecting Taxes to Fund New Paid-Leave Program

On April 11, 2019, the IRS announced the results of a national two-week education and enforcement campaign to combat employment tax crimes.  Payroll taxes account for approximately 70% of all revenue collected by the U.S. Treasury.  Given the significance of payroll tax collections to the federal government, IRS revenue officers across the country visited   nearly 100 businesses during the two-week period to discuss suspected employment tax noncompliance by the businesses.  These revenue officers informed the businesses about how to catch-up on previously owed payroll taxes, how to stay current in collecting and remitting payroll taxes, and the potential civil and criminal penalties that businesses and individuals face with respect to noncompliance.
Continue Reading IRS Announces Results of Employment Tax Campaign