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The Latest State and Local Payroll Compliance News From the American Payroll Association Efile mployers with more than one worksite must not only unemployment insurance contribution and wage reports with each state, they must also file quarterly employment and wage reports with the state agency that breaks down the information by industry and locality. The federal Bureau of Labor Statistics (BLS) uses the information collected to analyze the U.S. employment situation. To facilitate the collection of this information, the BLS developed a standardized form – Multiple Worksite Report, BLS 3020 (MWR). The MWR is customized to some degree for each state, and provides at the top of the form whether reporting is mandatory or voluntary in that state. Forms for each state are also available on the BLS website (see www.bls.gov/cew/mwrforms.htm). The BLS encourages employers to file multiple worksite information electronically or by using magnetic media. Information on the methods and specifications is available on the BLS website at www.bls.gov/cew/cewedr00.htm. To use the web reporting option, employers need to sign up for an MWR ID and password. The following chart lists the states and territories where MWR reporting is mandatory (this updates The Payroll Source®, p. 7-39), along with contact information for the state (the name of each responsible state agency and phone numbers). The use of the MWR is voluntary in the states not listed here. Note that Montana is not listed, because MWR is no longer mandatory in that state (although it is still encouraged). Olegislature n January 19, APA sent a letter to the Virginia in opposition to a bill that would, if enacted, require employers to provide paper checks as a payment option to employees (H.B. 1445). On January 24, the bill was tabled in the Commerce and Labor Committee of the House of Representatives. This means consideration of the bill is postponed, at least for now. Current law allows paperless pay In Virginia, employers are allowed (but not required) to pay their employees’ wages via paycard if the employees fail to designate an account for a traditional direct deposit. This arrangement is only permitted if the employee is able to use the card to withdraw or transfer up to the full balance in the account for free. Many employers have implemented beneficial electronic wage payment programs in Virginia. Bill would require paper checks H.B. 1445 would require employers to offer paper checks as a wage payment option. This would force unbanked (employees having no bank account) or underbanked (employees having a checking or savings account, but still reliant on alternative financial services) individuals to use expensive check-cashing services if they choose the paper paycheck option. A 2015 study by the Federal Deposit Insurance Corporation found that 4.6% of Virginia households are unbanked and 19.7% are underbanked. Benefits of electronic payment In contrast, employees can use branded paycards to withdraw their full net wages through a teller at any financial institution that is a member of the payment brand (tens of thousands of locations nationwide) at least once each pay period with no cost. Because the bill would strip employers of the ability to offer beneficial electronic wage payment programs in Virginia, APA opposes H.B. 1445. Requiring employers to reintroduce the systems necessary to process, distribute, and deliver paper paychecks would be costly, and would be harmful to employers and their employees. 2 | PayState Update February 6, 2017 • Volume # 19 • Issue # 3 APA Opposes Virginia Paycard Bill Requiring Paper Check Option to create the public awareness campaign “Taxes. Security. Together” [DOR, Tax Update, 12-16/1-17]. Rhode Island The Division of Taxation (DOT) alerted employers to the Form W-2 email scam in its Advisory for Tax Professionals. The DOT joined the IRS and other members of the tax industry at the IRS Security Summit to implement a series of initiatives to help guard against tax refund fraud and identity theft [DOT, Advisory for Tax Professionals, 1-27-17 Email, 2-2-17]. States With Mandatory Multiple Worksite Reporting State MWR Reporting Contact Information State MWR Reporting Contact Information AL Department of Labor 334-242-8884 NJ Department of Labor and Workforce Development 609-292-2633 CA Employment Development Department 916-262-1856 NY Department of Labor 518-485-8145 CO Department of Labor and Employment 303-318-8861 800-447-1276 NC Department of Commerce 919-707-1500 800-262-0514