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© 2022 American Payroll Institute, Inc. IRS Increases Standard Mileage Rate to 62.5 Cents for Second Half of 2022 On June 9, the IRS announced an increase to 62.5 cents per mile for the business standard mileage rate for transportation expenses paid or incurred beginning July 1, 2022 [Announcement 2022‑13, 2022-26 IRB 1185]. This is an increase of 4 cents from the original amount announced for 2022 (see PAYROLL CURRENTLY, Issue 1, Vol. 30). The IRS is making the midyear change “in recognition of the recent gasoline price increases.” While rare, the IRS has made midyear adjustments before. The last time the IRS made such a change was in 2011. The mileage rate may be used to compute the amount to reimburse employees who are using their own cars for business purposes. It may also be used by employers that elect to use the “cents‑per‑mile” valuation method for purposes of determining the amount that needs to be imputed to an employee’s income for personal use of certain company‑owned or leased nonluxury vehicles (see The Payroll Source®, §3.2‑2). However, it may not be used by employees in claiming a tax deduction for unreimbursed employee business expenses, since such deductions are suspended by the Tax Cuts and Jobs Act. Other rate increase In addition, the standard rate for miles driven for medical or moving purposes will increase to 22 cents per mile, up from the 18 cents‑per‑mile rate in effect during the first half of 2022. The deduction for moving expenses only applies to members of the Armed Forces on active duty who move under a military order and due to a permanent change of station. The standard mileage rate for operating a passenger car for charitable purposes, which is set by law, remains at 14 cents per mile. REMINDER – Because of the 4‑cent increase in the business standard mileage rate, employers reimbursing employees for the first half of 2022 need to be mindful of the rate change. Employers should make sure they change July 1, 2022 Volume 30 Issue 7 Inside this Issue... IRS Issues Revised Form 941 and Schedules, Form 941‑X. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Social Security Trustees Project $155,100 Wage Base for 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 FIRE Users Should Check, Update Information Before August 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Eligible Employers Can Still Claim ERC for 2020 and 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 IRS Confirms 1099 Filing Platform to Launch in January 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 IRS Reminds Filers to Use 2021 Specifications for 2021 Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Capitol Hill Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 9th Circuit Clarifies When a Tax Return Is Considered ‘Filed’. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Payroll Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Court Rules Employer Could Fire Employee for FMLA Misuse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 E‑Verify Updates Terminology, Documents for TNCs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 OCSE Updates New Hire Reporting Websites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 IRS Encourages Employees to Check Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Tax Court Says It Has Jurisdiction in VCSP Case. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DOL Renews Initiative to Focus on Restaurant Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Special Report: Panel Answers Questions at Payroll Congress – Part 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16