Payroll Updates



PAYROLL CURRENTLY Issue 1 is now available. The current issue, dated January 8, 2021, covers the latest federal payroll compliance developments and much more. Highlights include:
President Signs Legislation to Fund Government, Give COVID-19 Relief. On December 27, President Trump signed the Consolidated Appropriations Act, 2021, which also provides emergency COVID-19-related relief and contains key payroll provisions.

Standard Mileage Rates Decrease; Flexibility Allowed With Methods. The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2021, is 56 cents per mile.

IRS Releases 2021 Publication 15-T. The 2021 Publication 15-T describes how to figure federal income tax withholding using the percentage method and the wage bracket method and describes alternative methods for figuring withholding.

DOL Finalizes Rule for Classifying Workers. The U.S. Department of Labor (DOL) issued a final rule to determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act.

IRS Releases Form 941-X, Instructions for Third and Fourth Quarters. The IRS released a revised version of Form 941-X and its instructions to allow for correcting the deferred amount of the employee's share of social security tax.

IRS Releases 2020 Form 940 and Schedule A. Form 940 and Schedule A reflect that the U.S. Virgin Islands is the only credit reduction state or territory for 2020.

IRS Lists Common Errors for Claiming COVID-19 Tax Credits. The IRS released a tax tip to help employers avoid common errors when filling out Form 941, Employer's Quarterly Federal Tax Return, to claim a tax credit.

DHS Extends Temporary Requirements for Form I-9 Compliance Again. The Department of Homeland Security (DHS) announced an extension until December 31 of the temporary requirements allowing the flexibility of the physical presence requirements associated with the Form I-9.

The latest from the APA's Government Relations office: APA Supports New Jersey Assembly Bill on Earned Wage Access; APA Member to Serve on Louisiana Worker Misclassification Task Force; and more.

Also available are an Index for 2020 and the APA's Monthly Compliance Calendar.

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As all of us navigate this health crisis, we want to ensure that you continue to have access to the tools and resources that can help you do your job better and advance your organization through this unprecedented time.  

Please visit our COVID-19 Payroll Resource Center for ongoing information about COVID-19 and how it is affecting payroll compliance, including links to APA resources, education links, and government agency websites of interest to payroll professionals. You can also sign up to receive Pay News Now, a free electronic news digest which will deliver important payroll news straight to your inbox.

We at APA wish you the best.  Please feel free to contact us with any questions at (210) 224-6406, M-F, 8 a.m. – 5 p.m. CT.

From all of us here at APA,


Dan Maddux
Executive Director