March 31, 2008

IRS economic stimulus calculator available | DHS updates no-match rules: Implementation imminent | Mississippi enacts mandatory E-Verify law

Legislation updates provided by Rob Smith, Ceridian manager of Government Relations

IRS economic stimulus calculator available
DHS updates no-match rules: Implementation imminent
Mississippi enacts mandatory E-Verify law

IRS economic stimulus calculator available
The IRS recently released an economic stimulus calculator to remove some of the guesswork surrounding the size of taxpayers' stimulus checks.

Taxpayers can use this service to input their tax information from their 2007 Form 1040's, Form 1040EZ's or Form 1040A's to generate an estimate of the stimulus check they will receive from the U.S. Treasury. The amount of taxpayers' stimulus checks is based on how much they paid in taxes for FY 2007, and payments can range from $300 to $600 (up to $1,200 per couple), plus an extra $300 per eligible child.

The tax rebates -- including the per child rebates -- phase out for individuals with over $75,000 in adjusted gross income ($150,000 for couples) and the rebate will be reduced $50 for every $1,000 taxpayers make over the income limits. Single filers with 2007 AGI of $87,000 and married couples who made $174,000 and above are not eligible for the checks.

It can tricky to make these calculations on one's own, so the IRS's online tool should be valuable for many who are not sure if they qualify or who want to build the stimulus payment into their budgets for the coming months.

Go to the IRS economic stimulus calculator.

---

DHS updates no-match rules: Implementation imminent
On March 21, the Department of Homeland Security released updated rules to comply with a U.S. Federal Court's concerns that the DHS did not follow proper procedure when it issued the finalized no-match rules last August.

In its decision to hold up the rules, the court questioned whether the DHS had adequately cited its authority to implement the no-match rules and noted the Department's failure to supply an analysis of the regulation's impact on small businesses, which is required by law. The DHS provided this supplemental information in the updated rules. It did not amend the no-match procedure it outlined in the August rules which would require employers to take certain steps within 90 days to resolve SSA no-match letters regarding discrepancies between employee W-2 information and SSA files.

If this update satisfies the court, employers would have to comply with the requirements for SSA no-match letters they receive in 2008 based on 2007 W-2s or risk being deemed to have "constructive knowledge" of employing an illegal worker. The SSA could begin mailing the letters to around 140,000 employers as early as June.

Learn more about the DHS no-match rules.

Learn more about the updates to the no-match rules.

---

Mississippi enacts mandatory E-Verify law
In late March, Mississippi became the third state to require all employers to use the federal E-Verify system to verify new hires' work eligibility.

The requirement to use E-Verify phases in for companies depending on their size. Employers with 250 or more employees must begin using the system by July 1, 2008.

This law is part of a growing trend among state governments that are taking their own steps in the absence of federal legislation to crack down on illegal immigrants and the employers who hire them. Arizona and Oklahoma also require all employers to use E-Verify, and six more states require employment verification for all public positions.

Don't be surprised to see several other states jump on the E-Verify bandwagon this year.