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Upcoming Changes related to Payroll and 1099 Filings

Upcoming Changes related to Payroll and 1099 Filings

Effective January 1, 2017

Reminders for Payroll Changes that take effect January 1, 2017 

The Arkansas hourly minimum wage rate increased to $8.50/hour for effective Jan. 1, 2017.

The Arkansas Gratuity allowance (tipped workers) increased to $5.87/hour effective Jan. 1, 2017.

The Federal and Oklahoma hourly minimum wages remain the same at $7.25/hour.

At least 16 other states increased their minimum wage requirements, so be sure to check out any other state’s minimum wage requirement.

New Deadlines for filing W2s and 1099-Misc forms

Effective with the tax year 2016 forms filed in 2017, the forms listed below have a new deadline of Jan. 31, 2017 to be filed with the federal government.

  • Forms W-2 and W-3 are now due to the SSA on Jan. 31, 2017.
  • Form 1099-MISC with non employee compensation payments reported in Box 7 are now due Jan. 31, 2017.

Oklahoma Tax Commission (OTC) W2 and 1099 new filing requirements

Employers with Oklahoma withholding and wages are now required to submit both the form W-2 and W-3 with the OTC. In addition, the 1099 Forms must also be submitted to the OTC. All forms are now required to be submitted online to the OTC via the OkTAP system. Paper forms, flash drives, or magnetic media will no longer be accepted and will be returned by the OTC.

Other Payroll Reminders:

  • Remember to update your payroll system with any changes to your state unemployment rates, new employee payroll rates, any insurance rate changes, etc.
  • Check that the Form W2 properly reports the correct amounts for an employee’s fringe benefits, retirement plans, personal vehicle use, health insurance, etc.

Please contact one of your Beall Barclay team members with any additional questions.