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I received the following email question from a fellow tax professional -
“Hi Mr. Flach,
I saw your NJ tax practice blog and thought I might ask you what you plan to do, if anything, with the NJ FLI withholding, which is conspicuous on all NJ W-2’s for 2009.
Thanks.”
It would seem to me that family leave insurance contributions withheld from employees wages, and reported on the W-2, would be treated the same as SUI and SDI for federal income tax purposes. It is a required contribution to a state benefit fund. I have not seen anything to the contrary. The issue is not discussed on the DOL’s FAQ Page. Does anyone out there have a different opinion?
According to the NJ Department of Labor, “beginning January 1, 2009, employers are required to withhold 0.0009 from employees’ taxable wages as defined in the Unemployment Compensation Law”. But, unlike SUI and SDI, “employers do not contribute to the program”.
FYI, “the withholding rate increases to 0.0012 beginning in 2010”.
I was surprised to learn that excess FLI withheld due to more than one employer is not claimed on Form NJ-2450 and included in payments on the NJ-1040.
According to the NJ-1040 instruction booklet –
“If you contributed more than the maximum amount {of FLI – rdf}, write to Division of Employer Accounts, Worker Refund Unit ‘2009’, PO Box 910, Trenton NJ 08625-0910 or call the Department of Labor and Workforce Development at 609-633-6400.”
I also received an email concerning the New York Department of Taxation and Finance from a colleague in NYC who tells me “This came to me indirectly from a reliable, source” –
“As we gear up for the opening of e-file, please be aware that there may be delays for some taxpayers with their NYS refunds.
Refunds for wage earners will be held until all their employers have filed their NYS-45 year end wage report. They are not sending refunds to them until they are able to verify their wages and withholding. If you have a taxpayer with several w-2s, this could take time for them to match all w-2 info on their return."
I had previously reported that New York State is already going to delay the processing of all returns that do not request direct deposit for refunds. And now this!
TAFN.
I received the following email question from a fellow tax professional -
“Hi Mr. Flach,
I saw your NJ tax practice blog and thought I might ask you what you plan to do, if anything, with the NJ FLI withholding, which is conspicuous on all NJ W-2’s for 2009.
Thanks.”
It would seem to me that family leave insurance contributions withheld from employees wages, and reported on the W-2, would be treated the same as SUI and SDI for federal income tax purposes. It is a required contribution to a state benefit fund. I have not seen anything to the contrary. The issue is not discussed on the DOL’s FAQ Page. Does anyone out there have a different opinion?
According to the NJ Department of Labor, “beginning January 1, 2009, employers are required to withhold 0.0009 from employees’ taxable wages as defined in the Unemployment Compensation Law”. But, unlike SUI and SDI, “employers do not contribute to the program”.
FYI, “the withholding rate increases to 0.0012 beginning in 2010”.
I was surprised to learn that excess FLI withheld due to more than one employer is not claimed on Form NJ-2450 and included in payments on the NJ-1040.
According to the NJ-1040 instruction booklet –
“If you contributed more than the maximum amount {of FLI – rdf}, write to Division of Employer Accounts, Worker Refund Unit ‘2009’, PO Box 910, Trenton NJ 08625-0910 or call the Department of Labor and Workforce Development at 609-633-6400.”
I also received an email concerning the New York Department of Taxation and Finance from a colleague in NYC who tells me “This came to me indirectly from a reliable, source” –
“As we gear up for the opening of e-file, please be aware that there may be delays for some taxpayers with their NYS refunds.
Refunds for wage earners will be held until all their employers have filed their NYS-45 year end wage report. They are not sending refunds to them until they are able to verify their wages and withholding. If you have a taxpayer with several w-2s, this could take time for them to match all w-2 info on their return."
I had previously reported that New York State is already going to delay the processing of all returns that do not request direct deposit for refunds. And now this!
TAFN.
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