Between the holidays and the recent focus on the injunction of the FLSA change, we want to be sure you didn’t miss these two important updates.
ACA Reporting Extension for Forms 1095
The IRS extended the deadline for submitting Forms 1095-B or 1095-C to employees by 30 days to March 2, 2016. Notice 2016-70 also provides relief from certain penalties, given the employer has made a good faith effort to comply with the reporting requirement. The paper filing to the IRS does not change; paper files are due on February 28, and electronic files are due by March 31.
New Jersey Reciprocity with Pennsylvania is Reinstated
On November 22, New Jersey Governor Chris Christie reinstated the reciprocity agreement with Pennsylvania. This agreement states that any New Jersey or Pennsylvania resident working in the opposite state only pays state income taxes in the state in which they live. Without this agreement, those workers would be required to file two tax returns; taking a credit in their work state for the amount they paid to the state where they live.
Removing reciprocity was estimated to increase New Jersey revenue by $180 million. Governor Christie was holding out for an agreement, signed the previous day, saving $200 million on a public worker union-backed health care bill.
You’ve heard our thoughts… We’d like to hear yours
The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].
Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.