Alamo Chapter of the APA Newsletter

Transcription

1 Alamo Chapter of the APA Newsletter 2nd Quarter June 2005 Chapter Reminders New on-line payment option: The Alamo Chapter now offers a convenient on-line payment option. When registering for any Alamo Chapter function (monthly meetings, Study Group, Seminars) on the website, you can now use PayPal to pay directly on-line. We hope that our members enjoy this convenient payment option meeting calendar: Check out page five of this newsletter for the 2005 meeting calendar and speaker information. Membership Contest: Don t forget about the membership contest that began on April 30 and runs through August 31. Go to the website for details on the contest. Fall Seminar: Watch for the information on the Fall Seminar! Brochures will be mailed soon. Reserve Wednesday, October 26 th! I NSIDE T HIS I SSUE Member Spotlight This quarter s spotlight member is Mary Champagne. Mary has been the payroll coordinator at Capitol Aggregates, LTD, materials manufacturing company, for over two years. She coordinates all of the payroll processing, garnishments, payroll taxes, pay structures, and quarterly and annual processing for the company s 500+ employees. Mary has been a member of the Alamo Chapter for a little over two years. When Mary isn t working, she enjoys spending time with her two children and her four grandchildren. She also writes stories. Mary has recently finished her first novel and is working with a publisher. Way to go Mary! Your fellow chapter members will look forward to seeing your novel published and having a celebrity among us. 1 Chapter Reminders, Member Spotlight 2 Alamo Chapter Go Spurs Go Rally 3 Miscellaneous Statutory Updates 5 Upcoming Meetings 6 Chapter Leadership Seminar APA Newsletter 1

2 Chapter Activities Go Spurs Go Rally June Luncheon The Alamo chapter received a challenge from the West Michigan chapter of the American Payroll Association regarding the championship playoffs between our Spurs and the Detroit Pistons. The challenge: if the Spurs win the West Michigan chapter will send the Alamo chapter a basket of goodies from their state. On the other hand if the Pistons win the Alamo Chapter will send the West Michigan chapter a basket of goodies from our state. We decided to have a Go Spurs Go Rally at our June luncheon. The luncheon attendees were encouraged to wear their Spurs gear and bring any Spurs items they had. We were fortunate enough to have the Spurs Coyote join us at the luncheon. He performed for us and then stayed to sign autographs and take pictures with anyone that wanted a picture. Everyone had a great time! After a hard fought series it came down to one game. Game 7 was played in San Antonio on Thursday, June 23 and the Spurs beat the Pistons with a score of 81 to 74.. and the Spurs are the NBA Champions! APA Newsletter 2

3 IRS Backs Off Plans for Widespread Penalties for W-2 Name/SSN Mismatches Over Two Years of APA Lobbying Pays Off Ever since the Internal Revenue Service announced at the APA's 2002 Annual Congress its intention to impose a $50 penalty for each Form W-2 with an incorrect name or social security number (SSN), APA has been fighting the plan - through phone calls, meetings, and letters; in private meetings and public forums; and via our representation on the IRS's Information Reporting Program Advisory Committee. At long last, in a July 13 letter to APA, the IRS has announced that, "in lieu of a systemic penalty program the IRS intends to continue focusing its efforts on those employers with the most egregious mismatch rates." The IRS letter also quotes the March 10 testimony of Commissioner Mark Everson before the Oversight and Social Security subcommittees of the House Ways and Means Committee. With regard to widespread enforcement of the W-2 penalty, he said, "These activities would require a significant rededication of IRS resources to increase compliance in an area that is already, in general, compliant. Absent added funding for such activities, this would likely come at the expense of other compliance activities and with the attendant risk of a decrease in tax revenue from those other compliance activities." The IRS letter also announces that the Service is in the process of updating Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, to include formal guidance on penalties for Forms W-2 and how to get them abated an issue for which the APA has repeatedly requested more detailed instructions. The IRS letter states, Many of the issues and comments raised by the American Payroll Association will be clarified in a question and answer format in the revised publication scheduled for release later this year. Subsequent conversations between APA and IRS have confirmed that the revised publication will help all employers better understand the benefits of correct information, how to solicit the information from employees, and what to do if an employee does not provide the information. National American Payroll Association APA Newsletter 3

4 Employers No Longer Have to Submit W-4s Claiming Exempt or Over 10 Allowances to IRS The IRS has issued temporary regulations virtually eliminating the requirement to submit copies of certain questionable Forms W-4, Employee's Withholding Allowance Certificate, to the IRS. Effective April 14, 2005, employers are no longer required to submit a copy of any Form W-4 on which an employee claims more than 10 withholding exemptions or claims complete exemption from withholding and earns more than $200 a week. Instead, an employer must submit a copy of any currently effective Form W-4 only if directed to do so in a written notice to the employer from the IRS or under future published guidance. The temporary regulations also address written notices provided to the employer and the employee by the IRS stating the maximum number of withholding allowances permitted for an employee, and the use of substitute forms by employers and employees. APA ListServ Special Edition - April 15, 2005 Virginia: Garnishment Disposable Wages Calculation Legislation has been passed effective July 1, 2005 that changes the disposable wage calculation for Virginia wage garnishments. Chapter 286, section of the Virginia statutes has been amended to state the following: Maximum portion of disposable earnings subject to Garnishment except as provided in subsections (b) and (b1), the Maximum part of the aggregate disposable earnings of an individual for any workweek which is subjected to garnishment may not exceed the lesser of the following amounts: 1) twenty-five percent of his disposable earnings for that week, 2) the amount by which his disposable earnings for that week exceed 40 (formerly 30) times the Federal minimum hourly wage prescribed by section 206(a)(1) of title 29 of the united state code in effect at the time earnings are Payable. ADP Statutory Research APA Newsletter 4

5 Upcoming Meetings Mark your calendars for the upcoming chapter meetings:! Wednesday, July 20 Megan Lindberg, Cox & Smith Anatomy of an Employment Law Lawsuit! Wednesday, August 17 Sharon McGee 10 Worst Things a Leader Can Do! Wednesday, September 21 Joshua M. Schechter, Online Business Services Payroll Provider vs. In House, Pros and Cons.! Wednesday, October 19 Greg Nix, IRS EP Customer Education & Outreach Analyst Employee Benefit Plans! Wednesday, November 16 Angela Sanchez, Oppenheimer, Blend, Harrison & Tate Employment Law White Collar Crimes! Wednesday, December 14 Jim Medlock, American Payroll Association Year End Legislative Update Other Events:! September 1-3, 2005 Texas Payroll Conference Opryland Hotel Grapevine, Texas! Wednesday, October 26, 2005 Texas Best Seminar Dave & Buster s APA Newsletter 5

6 APA s Chapter Leadership Seminar By Valery Noakes, CPP The American Payroll Association (APA) supports the local Chapters by offering one-day Chapter Leadership Seminars to Chapter Officers across the nation several times a year. The seminars are held in San Antonio and address important chapter operation issues in the areas of Chapter Management, Membership Development, Chapter Recognition, Financial Concerns, Web Site Development, Meeting Planning, and Public Relations. APA began offering this seminar in 2004 and the response and feedback from chapter attendees has been overwhelmingly positive. Sandra Selvidge, CPP, President, attended the very first Chapter Leadership Seminar in She responds with "APA has outdone themselves with the Chapter Leadership Seminar. Not only did we get some wonderful ideas for making our Chapter grow in areas such as membership, publicity, and website, but also it prompted the incorporation of our Chapter. After attending the Chapter Leadership Seminar, our Chapter experienced a variety of changes, including revision of Chapter bylaws, changing our Chapter name and logo, to name a few. I would strongly recommend that every Chapter send as many of their board members as possible to the Chapter Leadership Seminar." Valery Noakes, CPP, President-Elect, attended earlier this year and stated that this seminar is extremely beneficial to our chapter and I hope all of our officers get the opportunity to attend. Not only do we get the opportunity to hear first-hand how other chapters handle different topics, but we get the chance to network and share our ideas too! Alamo Chapter benefits in so many ways from this exchange of information so that we can work to make our chapter the best! Below is a picture of the group that attended the Chapter Leadership Seminar on March 5, The Alamo Chapter APA Newsletter is distributed with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other professional assistance is required, the services of an attorney or accountant should be sought. The information contained in this newsletter is obtained from reliable statutory resources. APA Newsletter 6