e-News for Payroll Professionals 2025-01

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Issue Number:  2025-01

Inside This Issue

• Wage statements and certain information returns due by Jan. 31
• Business use mileage rate increased for 2025
• Proposed regulations on new Roth catch-up rule
• Guidance issued for paid family and medical leave programs
• Find qualified tax preparation help with IRS resources
• Updates to forms, instructions and publications

   Wage statements and certain information returns due by Jan. 31

The IRS reminds businesses to submit wage statements and certain information returns by Jan. 31, 2025. This deadline applies to:

• Form W-2, Wage and Tax Statements
• Form W-3, Transmittal of Wage and Tax Statements
• Form 1099-NEC, Nonemployee Compensation

These statements are due to the recipients by the same deadline. Businesses that submit 10 or more information returns to the IRS are required to e-file them through the Information Returns Intake System.

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   Business use mileage rate increased for 2025

The standard mileage rate for automobiles driven for business use is increasing by 3 cents to 70 cents per mile. The news release provides resources about medical rates, active-duty moving and charitable organizations.

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   Proposed regulations on new Roth catch-up rule

Treasury and the IRS announced regulation proposals related to SECURE 2.0 Act provisions on catch-up contributions and are accepting comments.

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   Guidance issued for paid family and medical leave programs

The IRS issued guidance on the treatment of income and employment tax of contributions and benefits paid in certain situations under paid family and medical leave programs. To help the District of Columbia and states that have these programs, the news release provides the revenue ruling, details about transition relief and some examples of scenarios.

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   Find qualified tax preparation help with IRS resources

The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help businesses find preparers in their area who currently hold professional credentials recognized by the IRS or who completed the annual filing season program. To find a tax professional who can help businesses, learn about the tax professional organizations many preparers belong to.

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   Updates to forms, instructions and publications

The following information may be of interest to payroll professionals, clients and partners:

Forms:
• Form CT-2, Employee Representative’s Quarterly Railroad Tax Return
• Form 990 or 990-EZ (Sch L), Transactions with Interested Persons

Instructions:
• Instruction 1099-B, Instructions for Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
• Instruction 4136, Instructions for Form 4136, Credit for Federal Tax Paid on Fuels
• Instruction 4684, Instructions for 4684, Casualties and Thefts
• Instruction W-2 and W-3, General Instructions for Forms W-2 and W-3 (Including forms W-2A, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c)

Publications:
• Publication 3, Armed Forces’ Tax Guide
• Publication 525, Taxable and Nontaxable Income
• Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)
• Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans
• Publication 5252, Enroll in the IRS eLevy Program today

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