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Issue Number:  2018-9

Inside This Issue

1. Pub 1281 now packed with information and FAQs about reduced 24 percent backup withholding rate
2. Qualified moving expense reimbursements no longer excluded from employees’ incomes with one exception
3. Notice gives further details on the new paid family and medical leave credit
4. “Racing Towards Year End: Employment Tax Updates & Reminders” webinar – Save money by avoiding errors
5. YouTube video explains a dangerous Form W-2 email scam; spread the word
6. Online IRS Nationwide Tax Forums debuts new seminars
7. New forms, instructions, notices and pubs on IRS.gov

Effective Jan. 1, 2018, the backup withholding tax rate dropped from 28 to 24percent. Backup withholding Pub 1281 is now updated to reflect this key change made by the Tax Cuts and Jobs Act.

Among other things, the revised publication features answers to 34 frequently asked questions. Q&A 34 is a must-read if you backup withheld at the wrong rate this year.

Share this news release with clients, employees and partners interested in this topic.

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The new tax law suspends the exclusion for qualified moving expense reimbursements. For 2018 through 2025, employers must include moving expense reimbursements in employees’ wages.

One exception: Members of the U.S. Armed Forces can still exclude qualified moving expense reimbursements from their income if:

• They’re on active duty.
• They move per a military order related to a permanent change of station.
• The moving expenses would qualify as a deduction if the employee didn’t get a reimbursement.

Notice 2018-75 gives detailed information on this topic.

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Eligible employers who provide paid family and medical leave to their employees during tax years 2018 and 2019 might qualify for a new business tax credit.

The questions and answers (with examples) in Notice 2018-71 gives further details on the employer credit for paid family and medical leave under Section 45S of the Internal Revenue Code,

More information:

• New credit benefits employers who provide paid family and medical leave
• Section 45S Employer Credit for Paid Family and Medical Leave FAQs

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Join the IRS and the Social Security Administration representatives for a webinar on employment tax updates and reminders. These tips will help save money by avoiding errors when doing year-end employment taxes.

Topics include:
IRS

• Paycheck Checkup: federal withholding and W-4 update
• Identity theft and tax related scams & schemes
• Transcript changes
• Information Security Policy requirements and how to respond to and recover from a data breach
• Employer Credit for Paid Family and Medical Leave
• Tax reform changes to transportation fringe benefits
• Navigating the IRS website, including the Payroll Tax Center and Tax Cuts & Jobs Act resources

SSA

• Business Services Online – What it is and how to register
  W-2 Online
• Filing Forms W-2 Electronically (EFW2) and by paper
  AccuWage
• The Social Security Number Verification Service (SSNVS)
• New: W-2C Online & W-2C wage file upload

Watch this free two-hour webinar at 1 p.m. Eastern on either:

• Tuesday, November 6, 2018
• Tuesday, December 4, 2018

As an added plus, the webinar qualifies for up to two federal tax continuing education credits through the IRS Approved CE Provider Program. Other payroll professionals may qualify for these credits depending on their organization’s requirements.

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Identity thieves are still using email to impersonate company executives in order to steal their workers’ W-2 forms.

Watch and share this YouTube video with clients, employees and partners on your social media platforms to spread awareness of this dangerous scam.

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The IRS Nationwide Tax Forums Online relaunched with 14 new webinars recorded this summer at the Nationwide Tax Forums.

Payroll professionals can earn continuing education credits online by completing self-study seminars at www.irstaxforumsonline.com.

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Forms:

• Form 1094-B, Transmittal of Health Coverage Information Returns
• Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns 
• Form 1095-A, Health Insurance Marketplace Statement
• Form 1095-B, Health Coverage
• Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

Instructions:

• Inst 1094-B and 1095-B, Instructions for Forms 1094-B and 1095-B
• Inst 1094-C and 1095-C, Instructions for Forms 1094-C and 1095-C
• Inst 1095-A, Instructions for Form 1095-A, Health Insurance Marketplace Statement

Notices:

• Notice 931, Deposit Requirements for Employment Taxes

Pubs:

• Pub 1281, Backup Withholding for Missing and Incorrect Name/TINs (including instructions for reading tape cartridges and CD/DVD formats)

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