News & Analysis as of August 31, 2025

Income Taxes › State Labor Laws

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Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect income taxes based on a progressive scheme, while others may utilize a proportional or regressive framework. less -

Employer Cheat Sheet for Workplace Laws Taking Effect July 1

Fisher Phillips on 6/24/2025

Most employers are prepared for new laws at the start of each year – but did you know that a heap of new workplace laws take effect at the halfway point? Here’s your employer cheat sheet to prepare for July 1 effective dates…...more

Georgia Bill Introduced to Not Tax Overtime Compensation: 4 Employer Considerations

Jackson Lewis P.C. on 2/27/2025

A bill introduced in the Georgia state legislature, if passed, would exclude overtime compensation from Georgia state income taxes starting in 2026. House Bill 375 (H.B. 375), introduced on Feb. 11, 2025, would exclude from...more

IRS Provides Tax Guidance Related to State-Run Paid Family and Medical Leave Programs

Groom Law Group, Chartered on 2/10/2025

On January 16, 2025, the Internal Revenue Service (“IRS”) issued Revenue Ruling 2025-4 (the “Rev. Rul.”). The Rev. Rul. provides guidance on the federal tax treatment of contributions to and benefits paid under a state paid...more

IRS Clarifies the Federal Income and Employment Tax Treatment of Contributions to and Benefits Paid from State Paid Family and...

Seyfarth Shaw LLP on 1/31/2025

As mandatory State paid family leave and paid family and medical leave (collectively “PFML”) programs have significantly expanded and proliferated in recent years, participating employers and employees have been faced with a...more

Employers Who Administer PFML Programs Get Much-Needed Guidance from IRS

Jackson Lewis P.C. on 1/30/2025

In response to taxpayer and state government requests, including a 2024 letter from governors of nine states imploring the Internal Revenue Service (IRS) to clarify the federal tax treatment of premiums and benefits under...more

IRS Ruling Clarifies Employment Tax Implications of Paid Family and Medical Leave Programs

Littler on 1/23/2025

The IRS’s recently released Revenue Ruling 2025-4 provides significant guidance on the employment tax treatment of contributions to and benefits paid under state paid family and medical leave (PFML) programs. This has been an...more

Employer to Nonresident Employee: “You Cannot Work in New York”; New York to Employee: “We Will Tax You Anyway”

Rivkin Radler LLP on 1/22/2025

You are probably aware that many employers are discarding the fully flexible, remote work policies that were forced upon them – as “nonessential” businesses – during the COVID-19 pandemic[i] and which they retained as an...more

RetireReady NJ: Reminder About The Requirements Under The New Jersey Secure Choice Savings Program Act

Cole Schotz on 1/14/2025

Employers with at least 25 employees in New Jersey that do not already offer a qualified retirement plan to employees must take action to facilitate the RetireReady NJ Retirement Savings Program (“RetireReady NJ”)....more

How Will the Election and Recent Legislative Trends Impact Tipped Wages? 4 Developments for Hospitality Employers to Watch

Fisher Phillips on 9/3/2024

There’s been a lot of buzz about tipped wages as Election Day approaches – and hospitality employers will want to track key proposals that may have a huge impact on pay practices. Former President Trump and Vice President...more

Alabama Amends State Income Tax Exemption for Overtime Payments

Ogletree, Deakins, Nash, Smoak & Stewart,... on 8/12/2024

In November 2023, Alabama enacted a law exempting, from Alabama state income tax, amounts received by full-time hourly wage-paid employees as compensation for overtime worked. On May 17, 2024, Alabama amended the Overtime...more

Out with the Old? Not So Fast! A Quick Review of 2023 Highlights

Bradley Arant Boult Cummings LLP on 12/29/2023

2023 has brought many updates and changes to the legal landscape. Our blog posts have covered many of them, but you may not remember (or care to remember) them. Before moving on to 2024, let’s take a moment to review our top...more

Alabama to Exempt Overtime Compensation From State Income Tax, Starting January 1, 2024

Ogletree, Deakins, Nash, Smoak & Stewart,... on 12/19/2023

On November 9, 2023, Alabama Governor Kay Ivey signed into law a bill that beginning on January 1, 2024, will make compensation received by full-time hourly wage-paid employees for overtime work performed in excess of 40...more

Capitol Connection, September 2023 Issue

Ruder Ware on 10/19/2023

WELCOME TO THE RUDER WARE CAPITOL SNAPSHOT - The ever-changing landscape of state government requires businesses across all industries to stay informed on the happenings in Madison. Welcome to Ruder Ware’s Capitol...more

Watch Out New York – New Jersey Wants Its Taxes Too!

Littler on 9/25/2023

On July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers. The law essentially adopts the...more

City of Salem, Oregon Enacts New Payroll Tax

Stoel Rives LLP on 7/14/2023

The Salem City Council on July 11, 2023, approved Ordinance Bill No. 12-23, which imposes a new payroll and self-employment tax to fund community safety services. The ordinance imposes tax at a rate of 0.814 percent of an...more

WFH - work from home or work from "home?"

Mintz on 12/9/2022

The global pandemic fostered a huge uptick in remote work as many companies were required to shut their physical offices for months. For many office employees, remote work meant finding any space to set up a laptop, be it a...more

I Wanna Know What Love Is . . . and When to Provide Domestic Partner Benefits

Holland & Hart - The Benefits Dial on 10/5/2022

When the Supreme Court legalized same-sex marriages back in 2015, the IRS clarified that two people are legally married under federal law when they also are legally married under their state’s law. Because of this...more

California Mulls More Job Killer Bills, Major Tax Hikes

Proskauer - California Employment Law on 4/14/2021

Last week, New York announced new tax increases that will subject certain of its residents to higher personal income tax rates than even Californians pay. Before the pages on that bill had cooled, the California legislature...more

California Law Creates New Risk Factor

Allen Matkins on 1/31/2020

Last year, California enacted AB 5 imposing the so-called A-B-C test for employee status under California's Labor Code. The legislation basically extended the California Supreme Court's holding in Dynamex Operations West,...more

Restructuring Operations in the Wake of California AB 5? Don’t Overlook the Tax Implications

Littler on 10/30/2019

Businesses with operations in California have begun to identify options and implement strategies for compliance with Assembly Bill (AB) 5, which imposes the ABC test for identifying whether a worker is an independent...more

Do Not Apply AB 5 Too Broadly

Best Best & Krieger LLP on 10/22/2019

Perhaps the biggest news coming out of California’s Legislature this year was the passage of Assembly Bill 5 – the new law that codifies the 2018 Dynamex case and which imposes a new test for determining employee or...more

Establishing A Business Entity In Puerto Rico

International Lawyers Network on 4/27/2019

Puerto Rico offers many advantages to individuals and companies that decide to establish business operations on the Island. These include unique local tax incentives; a strong, dedicated, and skilled bilingual labor force;...more

Call for Federal Legislative Changes Growing in the Gig Arena

Fisher Phillips on 1/15/2019

As I wrote previously, it is no secret that labor laws have been unable to keep pace with the changing economy, despite challenges from the bench to address the needs of the gig economy. Certain state legislatures (e.g....more

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Income Taxes › State Labor Laws

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