New Filing Rules and Deadlines for State Payroll Forms

A new tax season brings changes to tax codes around the country, often at the state level. Before sitting down to distribute W-2s, 1099s, or complete additional tax paperwork, you’ll want to check with your state’s Department of Revenue or Department of Taxation. This is an important step to see if changes have been made to the rules and deadlines for state payroll forms. If you don’t want to comb through your state’s website, form by form, we’ve curated the below list of filing rule and deadline changes.

  • Arizona – Through regulation, the Internal Revenue Services has eliminated the deduction charitable donations may have warranted on the 2019 federal tax return. The regulations determine that these contributions will instead result in a state or local tax credit, which will still reduce overall Arizona state income tax.
  • Arkansas – Starting January 1, 2020, Arkansas’ top individual income tax was trimmed to 6.6 percent, a reduction from the previous 6.9 percent for people with at least $80,800 in 2019 taxable income. While this will not affect 2019 filing rules, it is important to take note now and update payroll processes accordingly.
  • California – California’s controversial AB 5, which restricts the classification of workers as independent contractors, went into effect on January 1, 2020. While this will not affect the 2019 tax season, employers and contractors/employees will need to understand this reclassification heading into the new year and update payroll processes accordingly.
  • Georgia – Georgia has finalized a rule that adds late-filing penalties for withholding returns. Failure to file withholding statements (i.e. a W-2, Tax and Wage Statement, and/or 1099) will now result in a $1- penalty per form for those filed up to 30 days after the due date. The maximum penalty is $50,000. Then penalty doubles to $20 per form for those filed 31 days after the deadline and the maximum penalty increases to $75,000.
  • Iowa – This year, Iowa moved back its W-2 filing deadline. A new regulation, published in September 2019, requires employers to file forms W-2, Wage and Tax Statement, and send the forms to employees by February 15 of the year rather than January 31. The change took effect October 30, 2019, making it relevant for this upcoming tax season. This new deadline also applies to Forms 1099 that contain Iowa withholding.
  • Nebraska – Electronic filing specifications for several Nebraska forms were released in September 2019. Now, employers filing more than 50 W-2 forms of 50 1099-R or 1099-MISC Forms must do so electronically, according to a statement released by the State’s Department of Revenue.
  • New Jersey – The state taxation division updated New Jersey’s withholding guide in mid-December 2019. Employees will need to fill out the state withholding certificate (Form NJ-W4, or the Employee’s Withholding Allowance Certificate) to declare state withholding formation. Previously, employers were required to provide the form to employees, but if it was not returned, those employers could use the number of allowances claimed on a W-4 to calculate state withholding. Employers must also now file the annual reconciliation, Form NJ-W-3, to report the total monthly tax remitted, wages paid, and withholdings, even if no wages were paid and no tax was withheld during the year.
  • Pennsylvania – The Pennsylvania Department of Revenue released new filing specifications for Forms W-2 and 1099 in early November 2019. The new specifications are for the online EFW2 format, which is used to file Forms W-2, and the comma-separated values format, which is used for both W-2s and 1099s. Employers filing 10 or more W-2s or 1099s must now do so electronically.
  • Virginia – Virginia has increased their standard deduction by around 50 percent. Deductions for married couples, which were previously $6,000, are now $9,000. Single person’s deductions are now $4,500, up from $3,000.


What This Means for Preparers, Payroll Specialists and Filers

While we can’t send you alerts updated filing deadlines, we can help you file the most accurate, up-to-date forms possible. Tax codes change frequently, which means the forms themselves may not look the same from year to year, quarter to quarter. With Advanced Micro Solutions, you can rest assured that the form you have is the most revised available.

Similarly, our software allows you to collect and apply the data you need to file forms actively and efficiently. Whether you’re using our popular Payroll solution or our base W-2 and 1099 Software to distribute tax and wage information this season, you’ll have all the tools you need to do the work well. We also provide a robust library of state-specific resources designed to assist with filing, regardless of your geographic location.

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