Chicago Chapter Newsletters

 

Payroll news and views from the Chicago Chapter

 

  

It Pay$ To Know

 

October, 2005

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 the President
 

Congratulations to the Fox Valley Payroll Assoc. and to all those who attended the Annual Illinois Statewide Payroll Conference in September.   The conference provided many opportunities for learning, net-working and lots of fun.   The Fox Valley Chapter has set the bar high for The Chicago Chapter for next year’s Statewide.   Our planning has just begun.   We are looking for speaker suggestions and any ideas, you the members have for next year’s statewide.  At the end of this newsletter is a short survey.  Please complete the survey and send it back to us.

Hopefully you had a beautiful summer and enjoyed some quality time doing things you like to do.  Unfortunately, summer has come and gone and it is time to think of Year-End.  Yes, it is time to begin the preparations for completing W-2s, Form 941, Form 940 and benefit elections. 

Are you ready for year-end?   Do you know what all the tax changes are?  Want some help planning for year-end?    Plan on attending our last meeting of the year – Preparing for a “Smooth” Year-End 2005!  See below for more details. 

The biggest event next to our all day meeting and our NPW celebrations is our Holiday Party and CPP/FPC Recognition Dinner being held on November 18, 2005.   If you are in the mood to celebrate before getting to year-end and all the holiday rush, come join us for an evening filled with good food, entertainment, speakers and raffle prizes.   We will be congratulating all those who have passed the FPC and CPP tests.  If you passed this year, previous years or thinking of taking the test please join us for an evening of celebration.  It is a great feeling to past the test and to be recognized by your fellow payroll professionals.  

Hope to see you at both events.

Chris O’Hara, CPP
President, Chicago Chapter

 
 

National Paroll Week

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Katrina Update

 

 

 

 

 

 

 

 






 

Meeting

 

 

 

 

 

 

 

 

 


 
 
November

Holiday Party










 

2006 Statewide





 


 

Government Updates









































































































 

www.chicagopayroll.com

 

 


 

National Payroll Week 2005

 

The Chicago Chapter obtained fifteen (15) proclamations for NPW.  These included The State of Illinois, City of Chicago, and thirteen local municipalities.  The Chapter officers attended personal signings at Arlington Heights, Hoffman Estates and Palatine. Pictures were taken with Mayor Mulder from Arlington Heights and Mayor McLeod from Arlington Heights.  The signing at Palatine was taped and played on their closed circuit television station. 

The Chapter was represented at the Jerry Lewis MDA Telethon on Labor Day.  The day began with training and registration at 6:00 a.m. We had the front section and attendees wore specially made Chapter NPW t-shirts.  Officers and attendees included, Donna Wyllie, Jennifer Moore, Patricia Gaughan, CPP, Patricia Bradberry, CPP and her sister Mabel, Chris O’Hara, CPP and her sister Margaret, and Mary Kazmierczak, CPP.   Dean Richards from WGN-TV was presented a t-shirt and posed for pictures with our group.  

In keeping with tradition the Chapter hosted an all day meeting and celebration on August 25, 2005 at the Fountain Blue in Des Plaines.  There were 65 attendance to gather the latest Legislative and Regulatory Updates from APA’s Andrew McDevitt, as well as Data Privacy concerns. Jill Armstrong enlightened everyone on the increase in Global payrolls and the correct handling of tax situations that arise.  Making the day complete Unemployment Issues were covered by Rick Miller.  Balloon clusters and even the Payroll CD aided in creating an ambiance of celebration!  A special thanks to our presenters and those behind the scenes that helped make the day a success.  Our raffle prizes included KAC Certificates, NPW items and reference materials.  Congratulations to Linda Lowe, CPP winner of the overnight stay at a Holiday Inn. 

On Thursday evening September 8, 2005, twenty six chapter members and guests gathered for a fun filled evening at Gino’s East. Amidst the networking a NPW Trivia contest was played.  Prizes and raffles abounded throughout the evening!  We even made Debbie Dalager, CPP a first time winner of a raffle!

Amongst the prizes were the NPW throw and Payroll CD. 

Many members from the meeting and networking evening requested the book drive continue for the November 9th meeting.  We will gladly collect new children’s books at that meeting also to donate to the Chicago Public Library System. Thanks to al l the members that have donated books.  You are making a difference in the life of a child. 

The Chicago Chapters first NPW Contest was a great success!  Thank you all for sharing your Spirit of Payroll with us.  Entries ranged from NPW/Payroll Collages displayed on bulletin boards, departments surprising the manager with an NPW cake, and NPW messages printed on check stubs. 

The display of creativity made the task of picking a winner challenging.  The Chapter officers reviewed all entries and the winner of the Chicago Chapter NPW 2005 Contest is Mary Weiner, CPP from RIC. 

Mary planned a week of NPW festivities which included:

            Bagels and Juice on Tuesday
            Check Stub messages
            Mary and her associate Gabriel distributed checks in NPW shirts

            On Friday, Mary gave a goody bag with a Payday and 100 Grand bar, with a special note, “You deserve another Payday! Here’s a 100 Grand!  Happy National Payroll Week!” 

As Winner of the contest Mary Weiner, CPP will have her 2006 Membership dues and November 18th Holiday Party registration waived.  Mary will be awarded a Certificate during that evening!  Congratulations! 

On behalf of the Chicago Chapter, we have entered APA’s national contests. Our entries this year are:

  • Chapter Activity
  • Local Government Outreach
  • National Payroll Week Promotions

Winners are announced in the January Issue of Paytech Magazine.  In 2004 the Chapter won first place in the NPW Promotions contest. We won a trip to Congress, and Patricia Casey was the lucky member, whose name was drawn to attend.  Watch for results in the February 2006 “It Pays to Know” for Contest results. 

Thank you for making NPW an exciting and rewarding week in Chicago! 

 

IRS wants to hear our Katrina-related questions

As you have probably been reading, IRS has been very responsive to the concerns of employers and individual taxpayers with regard to obstacles to compliance caused by Hurricane Katrina and in providing tax relief to its victims. The developments from IRS, and other agencies to which payroll professionals are responsible, are being reported on the APA Web site.

APA Web site with Katrina developments: http://www.americanpayroll.org/news/hurricane.html

If you have a question for IRS about compliance or tax relief, please contact Scott Mezistrano, CPP who will forward your question.  Please review above website before sending your questions.  

Scott Mezistrano, CPP
Senior Manager of Government Relations
American Payroll Association
Suite 1000 South
601 13th Street, NW
Washington, DC   20005-3807
202-661-7691
Fax 202-661-7692
smezistrano@americanpayroll.org
www.americanpayroll.org

 

November 9, 2005 from 9:00 AM - 12:00 Noon
 Continental Breakfast - 8:30 AM

 Preparing  for a "Smooth" Year End 2005
   
 Allstate Insurance Co.
 51 West Higgins Road
 South Barrington, IL

featuring Martin Rule, CFP, CPA, CPP , Deloitte & Touche

This timely and informational session will cover such topics as:
·  Latest employment tax related IRS changes
·  Cautionary year-end payroll practices and quality control
·  Technical payroll discussion concerning fringe benefits, accountable plans, related deferred compensation issues
·   Independent contractor issues

Make your reservation by sending $10 per person to:
The Chicago Chapter APA
PO Box 836
Chicago, IL 60690-0836


 

Holiday Party

You should be receiving your invitation in the mail to the:
Chicago Chapter APA 2005 Holiday and Recognition Party
Be Part of the Celebration.  

Friday, November 18, 2005

The Wellington of Arlington
2121 South Arlington Heights Road
Arlington Heights, IL  60005
(847) 439-6610

 

Send in the attached invitation to make your reservations early.

2006 Planning for Statewide is Underway 

It is official the 2006 Illinois statewide is being held on September 20-22, 2006 at the Marriott in Hoffman Estates, IL    Mark your calendars. 

As mentioned earlier we would like to give you the opportunity to share your thoughts on what information you would be interested in learning more about at next year’s Statewide.  Please take some time to complete the below survey to let us know your thoughts.  Please email the completed survey to Chicago_chapter_apa@hotmail.com by November 11th.

State Minimum Wage Changes:

Effective 10-1-2005, the minimum wage for New Jersey will increase from $5.15 per hour to $6.15 per hour.  It will increase again to $7.15 per hour effective 10-1-06. 

New Jersey follows federal law regarding the tip credit.  Under FLSA, employers are required to pay a tipped employee only $2.13 per hour in wages, so long as the employee’s tips are enough to make up the remainder of the minimum hourly wage then in effect.  Therefore, the current NJ tip credit is $3.02 per hour and will increase to $4.02 per hour effective 10-1-05 and then to $5.02 per hour, effective 10-1-06.

 

(Source:  Payroll Currently, Issue 11, May 27, 2005)

 

Increases Mileage Rate Until Dec. 31, 2005

 

IR-2005-99, Sept. 9, 2005

WASHINGTON — The Internal Revenue Service and Treasury Department announced today an increase to the optional standard mileage rates for the final four months of 2005.

The rate will increase to 48.5 cents a mile for all business miles driven between Sept. 1 and Dec. 31, 2005. This is an increase of 8 cents from the 40.5 cent rate in effect for the first eight months of 2005, as set forth in Rev. Proc. 2004-64.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2005. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.  “With many predicting a decline in gas prices over coming months, we will hold off on setting the 2006 rate until closer to January,” Everson said. Next year’s rate could be lower than 48.5 cents.

The new four-month rate for computing deductible medical or moving expenses will be 22 cents a mile, up from 15 cents for the first eight months of 2005. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The annual Revenue Procedure includes limitations on who is not eligible to use the standard mileage rate. 

Deferred Compensation Update: 

The IRS has announced a change in the rule prohibiting deferred compensation under a Sec. 125 cafeteria plan.  A 2-1/2 month grace period is now permitted after the end of a plan year.  During the extended period, unused amounts in flexible spending accounts may be paid or reimbursed to plan participants for qualified benefit expenses incurred during the grace period.   

For calendar year plans, this change will give employees until March 15 to spend amounts they contributed to their FSAs during the previous year before they lose the amounts that are not spent.  [IRS Notice 2005-42, released 5-18-05]. 

(Source:  Payroll Currently, Issue 11, May 27, 2005) 

IRS: Employers No Longer Have to Submit W-4s Claiming Exempt or Over 10 Allowances to IRS.  The IRS has issued temporary regulations virtually eliminating the requirement to submit copies of certain questionable Forms W-4, to the IRS.  

Effective April 14, 2005, employers are no longer required to submit a copy of any Form W-4 on which an employee claims more than 10 withholding exemptions or claims complete exemption from withholding and earns more than $200 a week.
Instead, an employer must submit a copy of any currently effective Form W-4 only if directed to do so in a written notice to the employer from the IRS or under future published guidance. The temporary regulations also address written notices provided to the employer and the employee by the IRS stating the maximum number of withholding allowances permitted for an employee, and the use of substitute forms by employers and employees.
Note: The regulations (temporary and proposed) are available on the APA Web site at: http://www.payroll.org/i4a/pages/index.cfm?pageid=139 

Rules for Filing Employment Tax Returns Simplified:
Corporate officers and duly authorized agents should find it easier to sign employment tax returns they must file thanks to the new rules the IRS set forth in Revenue Procedure 2005-39. 

The revenue procedure will make filing the returns less burdensome on businesses because the rules will simplify tax filing and lower the number of returns rejected by the IRS because of signature issues.

The new rules also allow alternative forms of signatures, such as computer software programs or mechanical devices.  The IRS announced the guidance in press release IR 2005-73.  Rev. Proc. 2005-39 applies to the following forms:


 ·   Any form in the 940 series, including Form 940, Employer’s Annual Federal Unemployment Tax Return (FUTA); Form 941, Employer’s Quarterly Federal Tax Return; Form 943, Employers Annual Federal Tax Return for Agricultural Employees; and Form 945, Annual Return of Withholding Federal Income Tax;

·   Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons;

·   Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips;

·   Form CT-1, Employer’s Annual Railroad Retirement Tax Return; and

·   Any variant of these forms, such as Form 941c, Statement to Correct Information; Form 941-SS, Employer’s Quarterly Federal Tax Return.

Last year, the National Payroll Consortium presented an Industry Issue Resolution (IIR) submission to the IRS that led to the new guidance.  The IRS initiated the IIR program in 2001 to issue guidance on frequently disputed or burdensome tax issues suggested by taxpayers, associations and other industry groups. 

Revenue Procedure 2005-39 appears in Internal Revenue Bulletin 2005-28, dated July 11, 2005.  Information about the IIR program is in Revenue Procedure 2003-36.  All of these revenue procedures and Bulletins are available on IRS.gov.

Info source:  Emma Sánchez Sr. Tax Spec.   TEC Downers Grove, IL 


The website always has the most up-to-date information about meeting times, dates, places, speakers, etc.   

Check it often for the latest news and information.

 

 

   


Committees:  Please Volunteer

Chicago Chapter Hotline – (Christine O’Hara) The hotline committee will be responsible for accessing and answering the calls made to the Chapter’s voice mailbox. We are looking for volunteers that can agree to check voice mail at least once a day for a month and respond to the calls. This may include answering questions, recording attendees for meetings and forwarding messages to the Board as appropriate.

Meeting Planning – (Pat Bradberry) We are looking for volunteers that can help with planning the meetings including choosing topics and finding speakers, as well as finding locations for next years meetings.

National Payroll Week – (Christine O'Hara) We are looking for volunteers that can help with obtaining proclamations from the various cities and the State. We also have the privilege of talking with radio stations, newspapers and educational institutions to promote National Payroll Week. I have a great idea for next year’s Chapter activity. How about an Oberweis road show?

Audit Committee – (To be assigned) This group will audit the financial records of the Chapter.

Nomination committee – (To be assigned) This group of volunteers will verify the membership and credentials of those members wishing to run for election in August 2002.

Membership – (Lisa Dunn) This group will help promote membership in the Chicago Chapter.

Vendor Sponsorship – (Jenny Provenzano/Dennis Washington) This group will help solicit donations from organizations to help provide quality programming to you, our members.

Holiday Party – (Christine O'Hara) Volunteers will help plan this special event including entertainment, soliciting door prizes and location for next year.

Chapter Dues  

Remember, the $35.00 fee for Chapter dues should be paid by January 31 of each year.  This insures you will continue receiving the Newsletter and updates on the happenings in the Chapter.  

 

Annual Membership Dues - $35.00 Due 1/31/2005 - 

Membership Application, Chicago Chapter, American Payroll Association

 

  1. Type/write in the required information on this form or register via our website by clicking the "join us" button: www.chicagopayroll.com.
  2. $35.00 check payable to Chicago Chapter, American Payroll Association
  3. Mail to:

Chicago Chapter, American Payroll Association

P.O. Box 836

Chicago, IL 60690-0836

 

New Member ˇ Renewal ˇ
APA Member ID# ________________

Today’s Date____________________ CPP: Yes No

Name: First_____________________

Last _______________________

Title: __________________________

Company:________________________________________________________

Address:_________________________________________________________

City:____________________________ State:___________ Zip:________

Work Phone:______________________________________

If you missed the deadline of 1/31/2005 that's okay - we'd love to have you as a member - so fill out this form and send it in.


We'd love to hear from you - e-mail us: chicago_chapter_apa@hotmail.com with your suggestions for meeting topics, locations, and speakers!


 

Web Page created by Steve Mazik Updated 10/26/05