Congress’ present to payroll: Accelerated W-2 filing deadlines, parity for mass transit benefits and more — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Congress’ present to payroll: Accelerated W-2 filing deadlines, parity for mass transit benefits and more

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Congress has passed two amendments to H.R. 2029—the Protecting Americans from Tax Hikes Act of 2015, or PATH Act, which is the tax extenders bill, and an omnibus spending bill. The PATH Act accelerates the filing date for both paper and electronic Forms W-2s and 1099-MISC to Jan. 31, beginning with forms filed in 2017. It also extended several key payroll provisions.

W-2/1099-MISC provisions

In addition to pushing up the W-2/1099-MISC filing deadline, the PATH Act authorizes the IRS to issue regulations that will allow you to truncate employees’ Social Security numbers (SSNs) on their W-2s. Payees’ SSNs may already be truncated on Forms 1099-MISC.

Since you must file forms on the same day they’re due to payees, the PATH Act establishes a safe harbor from penalties for failing to file correct forms and for failing to provide payees with correct statements. Under the safe harbor, you won’t be liable for penalties if the error ...(register to read more)

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Laura Moetz January 26, 2016 at 11:40 am

Dear Alice,

I am part of my employer’s employee communications team, and my Payroll leadership often asks me to review their communications in advance. For 2015, our Payroll team deducted for Transportation Benefits the capped monthly amount of $130, not the retroactive amount of $250/month. Because the PATH Act is retroactive to 1/1/2015, is the Payroll department now responsible to reimburse employees for overwithheld FICA taxes on the $120/month difference?

I have flagged this with them, and suggested there is either a need to reverse Payroll and reimburse employees for overwithheld FICA taxes, or to revise our Forms W-2 prior to issuing to employees. (Either of these would require an announcement to employees.)

What is your view on this, please?

Thank you,


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