3 New Payroll Regulation Changes You Need to Know

Payroll regulation changes are happening all the time. As a small business owner, you must stay up-to-date with these changes, so you can remain legally compliant. Otherwise, you could face hefty fines and other penalties.

At The Payroll Department, we know that staying on top of changing rules and regulations can be an overwhelming task – in addition to the many other tasks you have as an employer. That’s why our clients like the fact that we vigilantly monitor payroll regulation changes, so they don’t have to.

Case in point, here are three new payroll regulation changes that could affect your company’s payroll processing.

Income Withholding for Support Order (IWO) Form Change

An Income Withholding Support Order (IWO) is an order that a court or Title IV-D child support agency sends to the non-custodial parent’s employer. It instructs the employer to withhold child support payments from the non-custodial parent’s income. The IWO form is used to withhold income in tribal, intrastate, and interstate cases. In Indiana, the withheld payments are sent to the Indiana State Central Collection Unit. Child support payments must be paid by an IWO to help ensure payments in the correct amounts are made in a timely manner to the right people.

Recent changes were made to the IWO form to clarify the instructions when completing the form and to make it more consistent.

Revised Form I-9

Form I-9, Employment Eligibility Verification Form, is used to verify the identity of individuals and their legal authorization to work in the United States. All U.S. employers must ensure a Form I-9 is properly completed for everyone – citizens and noncitizens – they hire for employment. Both employees and employers must complete the form.

A revised Form I-9 as well as updated Instructions for the form were recently released. Employers must begin using the new version (dated July 17, 2017) by September 18, 2017. You can find the new form and instructions on the U.S. Citizenship and Immigration Services’s Form I-9 website.

Revised Income Tax Rates for 7 Indiana Counties

Effective October 1, 2017, seven Indiana counties have changed their county income tax rates: Allen, Clinton, Fountain, LaGrange, Marion, Sullivan, and Vermillion. The Indiana Department of Revenue issued a new Departmental Notice No. 1, which reflected these rate changes. This tax rate notice helps employers determine the correct amount of Indiana county income tax to withhold from an employee’s wages.

A Payroll Provider Can Help Employers Stay Up to Date on Payroll Regulation Changes

 As an employer, you must know the payroll rules for every area in which your business operates. However, it can be a challenge to stay on top of payroll regulation changes. That’s why many companies outsource their payroll processing. At The Payroll Department, we stay on top of all payroll regulation changes, so we can keep our clients compliant.

If you would like help handling your company’s payroll, contact Teresa Ray, owner of The Payroll Department, at 317-852-4900. We’ll work with you to ensure your payroll is done correctly – and in compliance – each and every time.

– Ariane of The Payroll Department Blog Team