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With the Ernst & Young Payroll Resource Library, you stay ahead of the trends and developments that affect this complex—and ever-changing—area. By tapping into the experience and observations of Ernst & Young’s employment tax and payroll professionals across the country, the editors of this powerful, online resource help you stay fully aware of the latest events and changes.
Links within news stories display full text documents including legislation, regulations, court decisions, rulings and government reports.
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Drivers of a private transportation company fell within the jurisdiction of the Secretary of Transportation (DOT) under the Motor Carrier Act (MCA) and, thus, were exempt from the Fair Labor Standards Act's (FLSA) overtime requirements, the Eleventh Circuit has ruled.
The employer, which held itself out as an interstate motor carrier, was licensed with DOT, held authorizations from the Federal Motor Carrier Safety Administration (FMCSA) and was twice audited by federal agencies. The employer derived much of its income from transporting cruise ship passengers between airports and local hotels and cruise ship ports and had a contract with the Royal Caribbean Cruise Lines, under which it provided ground transport for that cruise line's passengers; the employer's employees met passengers upon their arrival, ensuring a constant stream of travel for the passengers.
The district court granted the employer's motion for summary judgment, finding that the employees, as employees of a motor carrier, were exempt and the employees appealed. The Eleventh Circuit affirmed the district court's ruling, finding that the DOT had jurisdiction over both the employer and employees. The employer was licensed under the DOT, had FMCSA authorization, was subject to federal audits and derived roughly four percent of its income from interstate trips. That amount, ruled the court, was identical to the percentage used by the US Supreme Court to create jurisdiction in Morris v McComb (332 US 422 1947). The employees also fell within the DOT's jurisdiction as they engaged in interstate commerce, the court concluded. (Walters v American Coach Lines, 11thCir, 159 LC ¶35,685)
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All of the states have now announced their taxable wage bases for 2010. As usual, there are a number of increases over the wage bases set last year. Only New Mexico had a decrease in 2010 however. In the table below, states having higher 2010 wage bases than the 2009 wage bases are printed in bold. The New Mexico amount is in italics to designate a decrease.
FUTA tax figures for 2010
The taxable wage base under the Federal Unemployment Tax Act remains $7,000 for 2010. In addition, all 50 states, as well as the District of Columbia, Puerto Rico and the Virgin Islands, have received certifications for the maximum additional credit allowable based on the 12-month period ending on October 31, 2009, so that their employers pay FUTA taxes at the net rate of 0.8%.
Taxable wage bases for 2010
2010
State Wage Base
Alabama 8,000
Alaska 34,100
Arizona 7,000
Arkansas 12,000
California 7,000
Colorado 10,000
Connecticut 15,000
Delaware 10,500
District of Columbia 9,000
Florida 8,500
Georgia 8,500
Hawaii 38,800
Idaho 33,300
Illinois 12,520
Indiana 9,500
Iowa 24,500
Kansas 8,000
Kentucky 8,000
Louisiana 7,700
Maine 12,000
Maryland 8,500
Massachusetts 14,000
Michigan 9,000
Minnesota 27,000
Mississippi 7,000
Missouri 13,000
Montana 26,000
Nebraska 9,000
Nevada 27,000
New Hampshire 10,000
New Jersey 29,700
New Mexico 20,900
New York 8,500
North Carolina 19,700
North Dakota 24,700
Ohio 9,000
Oklahoma 14,900
Oregon 32,100
Pennsylvania 8,000
Puerto Rico 7,000
Rhode Island 19,000
South Carolina 7,000
South Dakota 10,000
Tennessee 9,000
Texas 9,000
Utah 28,300
Vermont 10,000
Virgin Islands 22,200
Virginia 8,000
Washington 36,800
West Virginia 12,000
Wisconsin 12,000Wyoming 22,800
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The American Payroll Association (APA) and Visa have announced the launch of the APA Visa Paycard Portal (www.paycardportal.com). The APA and Visa collaborated in the creation of the portal as an online resource to educate businesses about payroll cards. Payroll cards or "paycards" enable electronic wage payment to employees regardless of whether they have a traditional bank account.
"APA's partnership with Visa creates a true go-to resource for businesses to learn about payroll card programs and best practices," said APA Executive Director, Dan Maddux.
The APA Visa Paycard Portal offers a wide range of resources for payroll and finance professionals. Highlights of the site include:
• An overview of the benefits of payroll cards for employers and employees;
• Best practices for implementing a payroll program;
• 'Points from the pros' allowing employers to ask questions about payroll cards programs;
• The latest industry news and webinars on key topics;
• Research on state laws that allow 100% electronic pay;
• Updates on legislative activity.
"Through the combined expertise of Visa and the APA, payroll professionals now have valuable information on how payroll cards offer employers cost saving efficiencies while enhancing the payroll experience for employees --literally at their fingertips," said Nizam Antoo, Senior Business Leader, Consumer Prepaid Products, Visa Inc.
Paycards can eliminate the recurring production and administrative costs of printing and mailing checks, while bringing the convenience and security of electronic payments to employees lacking a traditional bank account. The employee's pay is deposited directly to a secure account, accessible through a payment card, rather than receiving a traditional paper check. Employees enjoy more immediate access to their funds and the ability to use the card for everyday expenses and to pay bills in person, online or by phone as well as to access cash at ATMs. For more information, visit the APA Visa Paycard Portal at www.paycardportal.com.
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The Social Security Administration is renewing a computer matching program that it has in place with the Railroad Retirement Board (RRB). The program is designed to enable the SSA to identify which recipients of RRB annuity payments may be eligible for Medicare Savings Programs and subsidized Medicare prescription drug coverage and, in turn, identify those individuals to the states. It was scheduled to expire on April 1, 2010.
Under the program, the RRB will disclose RRB annuity payment data to the SSA. This disclosure will allow the SSA to verify an individual's self-certification of eligibility for prescription drug subsidy assistance under the Medicare Prescription Drug, Improvement and Modernization Act of 2003.
Interested parties are invited to submit comments about the matching program to one of the contacts listed in the official notice, the full text of which was published in the February 1, 2010, Federal Register (75 Fed. Reg. 5166).
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Unemployment Insurance Reporter with Social Security provides in-depth coverage of federal and state laws and regulations, including Unemployment Insurance, Social Security, Supplemental Security Income, and Disability. With all the facts and data about taxes and benefits under major subject categories, and expert “plain English” explanations, analyses and indexes, there is no other product that offers the same scope of coverage.
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