It Pay$ To Know

 

May, 2006

Chicago Chapter

American Payroll Association

P. O. Box 836 – Chicago, IL  60690 – (773) 631-8480

www.chicagopayroll.com

 

Notes from

Our Board

A Note from our President

 

Is it already May?   I see daffodils and tulips popping out of the ground.  Spring is here and I for one can’t wait for the warmer weather and longer days.    Spring gives us more energy and time to work on projects.   The board is working on Chapter Meetings, APA Congress, Illinois Statewide, and the Holiday Party.  Right now we are busy putting classes and speakers together for the 13th Annual Illinois Statewide Conference.   The conference will be held on September 20-22.  Mark your calendars.   More details will follow shortly.

 

We have also completed this year’s CPP and FPC classes.  Good Luck to those that are sitting for the exam, let us know how you did.  To those that have thought about taking the test; Make a commitment to yourself to study and take the test.   Be it this year or next year, be committed to do something for you.

    

For those planning ahead APA has two new events for NPW, (National Payroll Week).   The first annual “Money Matters” National Educational Day is September 8th.   A goal for NPW is to share payroll knowledge with the youth around the nation.   For those working with youth groups or in school districts let’s see if we can’t bring this knowledge to them.    The other event is called “NPW Supporter.”  Any company that helps spread the NPW message will be given the designation of an “NPW Supporter” and recognized on www.nationalpayrollweek.com.   More information on these two events can be found at the above website.        

Enjoy the spring weather and the longer days.   It is not what we have, but what we enjoy that constitutes our happiness.

Enjoy your happiness,

Chris O’Hara, CPP

President, Chicago Chapter

 

 

March Meeting

March Meeting

We hope those that attended our March 9th meeting on Payroll Accounting and Amending Forms W-2 & 941 found the meeting informative and educational.  Special thanks to our two presenters; member Sharon Goldsand, CPA, CPP from Elgin School District and Gwenella Blackshire from the IRS.  

 

During the meeting a question was raised by one of our members.  Gwenella Blackshire has researched the question and here is the response she asked that we share with you all.

 

Q:  If you receive a lock-in letter and the employee no longer works for you, what do you do? 

A:  You must send a written response to the IRS office designated in the lock-in letter indicating that the employee is no longer employed by you. 

 

Additional information relating to the W-4 Form can be found at: http://www.irs.gov/individuals/article/0,,id=139412,00.html

 

 

Also, a big thank you to those who attended the meeting.  Through your donations to split the pot the chapter was able to donate $40 to the Y-Me Breast Cancer Campaign.  Amy Czech, CPP and Kim Childress, CPP were the other lucky winners.  Thanks to Katie Staffeldt, CPP and Linda Lowe, CPP for taking care of this event.    

 

 

 

June Meeting

Next Meeting - June 8, 2006 - Thursday Morning 8:30 AM - 12:00 Noon

Topics:
Non-Discrimination Testing with the latest industry updates; the New Roth IRA and it’s affect on Payroll; and Financial Planning.    

Four Outstanding Speakers provided by Fidelity Institutional Retirement Services Company.

Where: Information Resources, 150 N. Clinton, Downtown Chicago

Special Event:  Bring along your Benefits Representative and your name will be entered into a raffle.  

Reserve your space today! Call the Chapter Helpline at: (773) 631-8480 or send your email correspondence to:chicago_chapter_apa@hotmail.com.

The cost to attend the meeting is $10.00 for members of the Chicago Chapter and $15.00 for non-members

See below registration form.
 

 

 

24th Annual Congress

24th Annual Congress

Will you be attending the 24th Annual Congress in Orlando, Florida?    Have you booked the hotel? Made the travel arrangements?   Have you planned your agenda? Checked it twice?

Good.  Whether you are attending for the first time, or have attended in the past, as the event draws closer, the anticipation grows.  The Chicago Chapter officers would like to share in your Congress experience.

Christine O’Hara, CPP (President) and Mary Kazmierczak, CPP (Vice-President) welcome the opportunity to meet you in Orlando. We are coordinating a get together at the Disney Boardwalk, the evening of Sunday May 21, 2006.

 

If you are attending and would like to join your fellow chapter members for some networking, send your RSVP to chicago_chapter_apa@hotmail.com , include contact information so we can forward you confirmation and details. RSVP by May 8, 2006.

 

We look forward to sharing our Chapter Spirit in Florida.

13th Annual Illinois Statewide Payroll Conference

13th Annual Illinois Statewide Payroll Conference

Make your reservations early!

September 20th thru September 22nd, 2006

The 13th Annual Illinois Statewide Payroll Conferences Hosted by the Chicago Chapter American Payroll Association will be held at the Chicago/Hoffman Estates Marriott Northwest
(Located at I-90 and Route 59)

Hotel Direct Phone:  847-747-0612
Hotel E-Brochure:  http://www.whihotels.com/ebrochures/chicago/

Vendor Information - Dennis Washington, CPP, 847/291-5750
General Information - Christine O'Hara, CPP, 312/474-3221,
Mary Kazmierczak, CPP, 847/718-2000, Ext 5315

 

 

 

News on our Members

 

 

 

Member News

 

The chapter would like to start a new section of our newsletter.   We realize that as payroll professionals we don’t always like to ‘toot’ our own horns but now you have the opportunity.  Have you had something important happen to you that you would like to share? New Job, Award, Marriage Proposal, New Baby?   Share the news with your fellow members.

 

Congratulations to our own Dennis Washington, CPP and Chapter Government Liaison!  He has been chosen as one of Lane Hotel’s 2005 most outstanding employees.    He will be attending a special ceremony at Lane’s 2006 General Manager’s Conference.  

 
Their hearts are filled with happiness and their lives are filled with love.  Proud parents Jenny and Maurizio Provenzano have adopted the little girl they have always dreamed of, Maria Giovanna born February 10, 2006.  Congratulations and Best Wishes.

 

   

 

 

2006 CPP and FPC

Review Classes

 

2006 CPP and FPC Exam

We have heard from several of our Review Class attendees on passing the exam.  Congratulations to the following:

      Linda Aldrich, CPP        

      Lisa Boyd, CPP

      Dawn Cerrito, FPC

      Colleen Hanson FPC

      Scott Holley, CPP

      Orjuana Johnson, CPP

      Kay Kazlowski, CPP

      Josie Lash, FPC

      Cheryl Lewis, FPC

      Matt O’Hart, CPP

      Joanne Panno  FPC

      Karyn Rhoades, CPP

     Tina Sonsalla, CPP

 

2006 Dues

 

Annual Membership Dues

Membership fees for the 2006 calendar year are due by January 31, 2006.

If you have already paid your dues, thank you.  Dues for 2006 will be $40.00. 

Remember, your dues cover such items as postage, invitations, the website, telephone hotline for those tough questions, post office box, CPP and FPC pins, career development and networking with great people.

Please mail the completed attached form and your check, made payable to the Chicago Chapter APA, to the Chicago Chapter, PO Box 836, Chicago, IL 60690-0836.

A membership form is also available at our website: www.chicagopayroll.com

 

We are excited this year to announce a special referral program!  A “referred by” section has been added to the membership form.  Each time a new membership (anyone who was not a member in 2005) indicates that they were referred by you; your name will be added to a drawing.  The drawing will be held at our Holiday Party for a $ 50 Gift Certificate.  

 

 

Government Updates

 

 

FAQs regarding Form W-4 from   http://www.irs.gov/gov

 

Frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed to provide the user with information required to respond to general inquiries. Due to the uniqueness and complexities of Federal tax law, it is imperative to ensure a full understanding of the specific question presented, and to perform the requisite research to ensure a correct response is provided.

 

Q: Can employees change their Forms W-4 in mid-year to increase their withholding exemptions, even though their marital status and number of dependents have not changed? For example, an employee revises his Form W-4 to increase his exemptions from three to nine or repeatedly changes his Form W-4.

 

A:  No. Every employee must furnish to the employer a signed withholding exemption certificate (Form W-4) on or before the date of employment. The Form W-4 must indicate the employee's marital status and the number of withholding exemptions claimed. This number should not exceed the number to which the employee is entitled. A married employee can claim an exemption for a spouse only if the spouse does not have in effect a Form W-4 claiming his or her own exemption. Code section 3402(f)(1)(B). If the employee fails to provide a Form W-4, the employer must withhold as if the individual were single with no withholding exemptions. Section 31.3402(f)(2)1(a), Employment Tax Regulations. 

 

Publication 505, Tax Withholding and Estimated Tax, provides detailed instructions for completing Form W-4.   Pub. 505 and Pub. 919 provide information about determining the correct amount of income tax withholding.

 

Employees may amend their forms W-4 if their situations change. Some of the reasons to add an exemption would be if an employee gets married (provided the spouse does not work and claim his or her own exemption) or if a child is born or adopted. Section 31.3402(f)(2)-1(b), Employment Tax Regulations.

 

The purpose of completing the Form W-4 is to have the right amount of tax withheld. Sometimes this cannot be done simply by claiming an exemption for each member of a family. The employee may be entitled to additional withholding allowances, as provided in the regulations. Code section 3402(m), section 31.3402(m)1. For instance, the employee might have deductions and credits which will significantly reduce taxable income. To benefit from extra allowances, the employee must have in effect with the employer a Form W-4 claiming additional allowances.

 

The employee may also be entitled to fewer exemptions or need to have additional tax withheld if, for instance, the employee has additional sources of income, such as self-employment or investment income. Form W-4 is also used to authorize additional withholding. See Publication 919.

 

Any unauthorized change or addition to a Form W-4 makes it invalid. This includes taking out the language by which the employee certifies that the form is correct. A Form W-4 is also invalid if, by the date an employee gives it to the employer, he or she indicates in any way that it is false. An employee who files a false Form W-4 may be subject to a $500 penalty.  An employer should not knowingly use an invalid Form W-4 to calculate withholding. The employer should tell the employee it is invalid and ask for another one. If the employee does not provide a valid one, the employer should withhold taxes as if the employee were single and claiming no withholding allowances. However, if a prior Form W-4 is in effect with respect to the employee, the employer should continue to withhold in accordance with the prior form. Sections 31.3402(f)(2)-1(e) and 31.3402(f)(5)-1(b), Employment Tax Regulations..

 

 

Q: Employees sometimes claim exemption from withholding on their Forms W-4. What are the applicable rules?

 

A:  An employer is not required to deduct and withhold income tax upon payment of wages to an employee if the employee has filed a valid certificate of exemption from withholding. An employee may claim exemption from income tax withholding if he or she (1) had no income tax liability last year and (2) expects to have no tax liability this year.

Code section 3402(n). See the Form W-4 instructions for more information.

 

An employee must submit a Form W-4 to the employer each year by February 15th to claim exemption from withholding. If the employee does not provide a new Form W-4, the employer must withhold tax as if the employee were single with zero withholding allowances.

 

Beginning with the first quarter of 2005, employers are no longer required to submit certain copies of Form W-4 to the IRS. The IRS has developed a new process to more effectively identify workers with withholding compliance problems.  In cases where problems are identified, the employer will receive a written notice from the IRS with specific instructions for withholding on the affected employee.

 

 

 

Minimum Wage Laws in the States - March 1, 2006

www.dol.gov/esa/minwage/america.htm

 

Login in to the web link and click on any state or jurisdiction to find out about applicable minimum wage laws.
 
Note: Where Federal and state law have different minimum wage rates, the higher standard applies.

 

 

IRS Training Opportunity

Internal Revenue Service Free Phone Forums

There’s still time to join the Internal Revenue Service instructors from the convenience of your office or home to participate in free Phone Forums for industry groups and businesses.  Each Phone Forum is designed to last approximately one hour.  The last forum is scheduled for Wednesday, June 6th at 11:30 a.m. Central (12:30 p.m. Eastern).

 

The topic is Tip Reporting Requirements.  Learn how to take the mystery out of tip reporting.  Ross Hirst, Senior Stakeholder Liaison with Internal Revenue Service, will provide a comprehensive guide for employers and employees on how to correctly report tip income.  This session will help identify recordkeeping and tip reporting procedures.

 

Following presentation, there will be a question and answer session. Registration at www.attevent.com is necessary to ensure enough telephone lines are available. (Use Access Code: 525547)  During registration, you will be assigned a Personal Identification Number (PIN) during registration that will be used in order to join the conference. If you have not created a profile with AT&T previously, you will need to create a profile prior to registering for this forum.

 

A few days before the phone forum, all registrants will receive a reminder e-mail with the toll-free call-in number and any handouts for the session.  If you have questions or need further information, please contact phone.forum@irs.gov.

 

 

2006 Chapter Events

 

2006 Events

 

Monthly Meetings

 

August:

National Payroll Week Celebration Meeting
Officer Elections
IRS Payroll Audits
DOL Audits

   

November:

Preparing for Year End

 

Special Events

    24th Annual Congress

    May 21 – 25

    Walt Disney World

    Swan & Dolphin Hotels

    Orlando, FL

 

    13th Annual Illinois Statewide

    Hosted by the Chicago Chapter

    September 20 – 22

    Marriott Northwest

    Hoffman Estates, IL

 

    Chicago Chapter Holiday Party

    November 17

    Wellington

    Arlington Heights, IL

   

 

Charity Events

Other Chapters Making News

 

The North Carolina State Chapter of the APA is sponsoring an eBay auction to benefit the Duke Children's Hospital in Durham, NC.  The auction will be held from May 28th - June 4th under the eBay seller ID of nonprofit_helper.

 

All members are invited to log onto eBay during this time period and check out the items available.  There are several items available for auction, as well as, quite a few items in the 'Buy It Now' category.  We need everyone's help to make this a successful fundraiser for the patients at Duke Children's Hospital.

 

Jackie K. Forlines, Treasurer

NCAPA

 

 

www.chicagopayroll.com

Our Website gets a Spring Makeover

 

Have you had a chance to visit the chapter’s web site lately,   www.chicagopayroll.com ?    You’ll notice a big change.   The site has been completely revised using the most current trends in web graphics and formats.  A big thanks to Hank Mazik, CPP, the Chapter’s Treasurer and Web Master for all his efforts and time in creating this web site. 

When reviewing the website be sure to check out the “In the News" section for detail information regarding IRS topics and news.   The IRS offers phone forums on various topics.   Also, check out the Job Postings.  We have been receiving a steady flow of job opportunities.  


Join Us
Membership Application

 

1. Complete all required information on this form

2. Print it out

3. $40.00 check payable to "Chicago Chapter, American Payroll Association"

4. Mail to:

Chicago Chapter, American Payroll Association
P.O. Box 836
Chicago, IL 60690-0836
(Please allow 5 days for mail delivery)

Questions?  (773) 631-8480
chicago_chapter_apa@hotmail.com


 

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New Member Renewal

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Registration Form for June Meeting


 

CPP Class Regist.

FPC Class Regist.

CAPA Meeting

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Attach check made payable to Chicago Chapter APA.

Send To:  Chicago Chapter APA
                       
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                        Chicago, IL  60690-0836


TO REGISTER, PLEASE TYPE IN THE REQUIRED INFORMATION, PRINT OUT & MAIL WITH YOUR PAYMENT.