Here is the latest addition of our Unemployment Flash Report.  Please send an e-mail to taxalerts@talx.com with any comments or suggestions.

Employer Tax Services

New Mexico sent a flyer with the 2012 tax rate notices sent this week.  It explains the steps that need to be taken to set up their self-service account on the state’s website.  TALX clients will be receiving a letter in the near future explaining how to set up TALX as your TPA.  See the following link for a copy of the flyer.

Employer Tax Services

Maryland sent a letter with the 2012 tax rate notices issued this week.  It indicates that the rate schedule remains the same and also explains the requirements for an employer to set up a payment plan for their quarterly unemployment insurance taxes.  See the following link for a copy of the letter.

Employer Tax Services

Arizona sent an apology notice with the 2012 tax rate notices with regard to some incorrect tax statements sent to employers a few weeks ago.  See the following link for a copy of the notice.

Employer Tax Services

As the California Legislature returned to Sacramento last week, Assembly Speaker John A. Perez (D-Los Angeles) was busy addressing the Governor's budget plan, raising the issue of revising the Enterprise Zone program and commenting on the challenging issues for the year ahead.

TALX is actively monitoring legislation and will continue to do our best to keep you updated on the status of the California Enterprise Zone Program.

The following are tell-tale signs that 2012 promises to be an active, interesting and promising year!

Pérez made the following statement on Thursday regarding the Governor’s budget plan:

"The Governor's budget plan reflects the fact that even though California's economic recovery is gaining strength, we still face a year of difficult choices. His plan underscores the need for new revenues to avoid cuts that will be a major drag on the recovery, and I am looking forward to working with the Governor and my colleagues to produce an on-time budget that reflects California's values by our June 15th deadline."

Pérez addressed the Enterprise Zone program in an interview with John Myers:

A second look will also no doubt be taken at the issue of local economic development in the wake of the California Supreme Court ruling that abolishes more than 400 local redevelopment agencies next month. Speaker Perez dismissed any notion that actual RDAs will be recreated by the Legislature; instead, he emphasized the need for ways to promote job creation and economic stimulus that doesn't favor one region over another. And he suggested that the scrapping of RDAs could reignite his the effort of many Democrats to revise the state's enterprise zone program.

Maureen Schneider

Here is the latest addition of our Unemployment Flash Report.  Please send an e-mail to taxalerts@talx.com with any comments or suggestions.

Employer Tax Services

Rhode Island issued a flyer regarding unemployment and disability taxable wage bases and tax rates.  See the following link for a copy of the flyer.

Employer Tax Services

Pennsylvania recently sent a letter to employers regarding the reduction in FUTA credit on the 2011 Federal Form 940.  The letter also mentions the fact that the 2012 rate notices normally mailed on December 31 will be delayed.  Our contacts have told us that they do not have a projected mailing date at this time.  See  the link below for a copy of the letter.

Employer Tax Services

Michigan recently sent a letter to employers regarding the recent law changes and their effect on the 2012 rate determinations.  The mailing of the rates will be delayed until the end of January 2012.  See the link below for a copy of the letter.

Employer Tax Services

Both the House and Senate have passed a two month extension to the payroll tax cut. While it was hoped that WOTC would be part of this conversation, ultimately the legislature chose to focus only on the tax cut and not any of the tax extenders.

This two month extension does, however, force the legislature to renegotiate the payroll tax cut early next year. It is a possibility that at that time the payroll tax cut talks would also include WOTC and the extenders. For now, the core WOTC program will enter hiatus on Jan 1, 2012 while the specific veteran provisions in the Vow to Hire Heroes Act of 2011 will continue through 2012.

Ezrie Yellin