Thursday, March 3, 2011

State News

Illinois. As of tax year 2011:
* Both the supplemental wage tax and individual SIT rate are 5% through december 31, 2014. For the new withholding tables and guidance, contact me (Ken Reid) via email at

* Employers who had a tax liability of $12,000 during the look-back period must now remit semiweekly taxes electronically via EFT. [DOR, Informational Bulletin FY 2011-07,12-10]

* File quarterly Form IL-941, Illinois Withholding Income Tax Return, unless notified by the DOR. Form IL-941-A has been eliminated. [DOR, Informational Bulletin FY 2011-07, 12-10]

Iowa. The value of health insurance provided for nonqualified dependents ages 25 and 26 is not SIT-taxable for 2011 per Iowa Code §423.7(29A). In other words, state rules now parallel federal health care reforms. Visit, click on "Coupling with Federal Tax Provisions."

Kentucky. As of January 1, 2011, the value of coverage for adult children under the Affordable Care Act is SIT taxable to the employee. Include on the state W-2 in Box 14. Details were in a letter sent December 27, 2010. See a copy at, click on "Coupling . . ." under Popular Links.

Maryland. For pay dated January 1, 2011 oe later, the supplemental withholding rate is 5.5% (.055) of the gross. New 2011 percentage method withholding tables are at, type "2011ptables" (yes, there is a "p" in there), then click on "Maryland Employer Withholding Information."

Michigan. As of 2011, file annual unclaimed wage reports by July 1. The first report will cover the 9 months through March 31, 2011; from 2012 on, the last 12 months. [H.B. 6421, L. 2010]

New Jersey. The state now uses federal rules for clocking time worked. Thus, you must round to the nearest 5 minutes, nearest tenth of an hour (6 minutes) or quarter (15 minutes) of an hour. Employers must apply the method chosen to all employees. [N.J. Adm. Code §12:56 5.8]

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