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Government

2016_06 Government Update

2016_06 Government Update

Federal

System Error Causes Some IRS Deposits to Reflect as Late

Some late notices were incorrectly sent to employers regarding the May 31 (next-day depositors) and June 2 (semiweekly depositors) required deposits. Due to a programming error, the IRS’s system did not reflect Memorial Day as a national holiday. Employers are given an extra day to make a required deposit if the deposit’s due date is on a weekend or national holiday. Employers may receive a “Failure-to-Deposit Penalty” or “Notice of Incorrect Deposit, Penalty Waived” notice due to this error. If the employer receives a “Failure-to-Deposit Penalty” notice, a new notice will be sent to employers advising that the account was corrected and no penalty was owed. For employers receiving the “Notice of Incorrect Deposit, Penalty Waived,” they will not receive an additional notice regarding a change to their account. You can read more about this issue here.

State

Ohio Requires School District Names and ID Numbers on W-2

Beginning with the forms for 2016, W-2s for the state of Ohio will require additional information regarding school district taxes. The form must now include the name of the school district and the four-digit school district code assigned by the stated in Box 20 of the form. This will only apply if the school district has a withholding tax. Prior to this change there was no standardization of how this information must be reported on the W-2. This change will cause some employers to issue additional copies of the W-2, if employees have more than two municipal and/or school district localities withheld for the tax year. You can read more about this change here

 

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