Get some highlights from the up to date rule and discover out how one can ask questions
Seattle’s Finance and Administrative Providers Division (FAS) has launched an up to date payroll tax rule. The executive rule was up to date as a result of in April Seattle Metropolis Council handed laws amending the payroll tax, creating a brand new choice for employers topic to the Seattle payroll tax to find out their payroll tax legal responsibility.
This feature, referred to as the “hours” methodology, permits employers to pay taxes on the hours an worker spent working in Seattle as a proportion of the overall hours the worker labored. Some highlights from the up to date rule:
- Below the “hours” methodology, an employer determines what compensation was paid in Seattle in line with this system:
- The “Whole Hours Labored In every single place” or the denominator within the above equation will presume that full-time staff work 1,920 hours yearly. Nevertheless, the rule specifies that “if precise hours labored are greater than 1,920 hours or may be moderately anticipated to be greater than 1,920, the employer should be capable of doc the elevated variety of precise hours for the calculation.”
- “Hours labored” is outlined as “appearing in the midst of employment and consists of time spent by the worker appearing at his or her employer’s path or within the furtherance of his or her employer’s enterprise.”
- Employers are nonetheless allowed to make use of the present system, referred to as the “primarily assigned” methodology, the place both an worker is classed as working in Seattle and an employer is accountable for paying taxes on all the worker’s wage, or an worker shouldn’t be labeled as working in Seattle and no tax is due.
- Employers will choose which choice they want to use on an annual foundation, which is able to apply to ALL of their staff – i.e., you can not calculate the tax you owe for some staff utilizing the “hours” methodology and others utilizing the “primarily assigned” methodology.
The up to date administrative rule consists of a number of new examples of how the “hours” methodology ought to be utilized. See Examples 7-9, 20-21, and 30.
FAS is internet hosting one in every of its month-to-month Payroll Expense Tax Coaching subsequent Wednesday, July 7 at 10 a.m. These webinars present a chance for employers to ask FAS instantly about any payroll tax questions. Anybody could attend, however registration is required.
Be at liberty to succeed in out when you’ve got questions or considerations.