What's New? FICA tax updated for 2013


Please see the Federal Insurance Contributions Act in the Human Resources section for updated tax information.


Please see the Federal Insurance Contributions Act in the Human Resources section for updated tax information.
The Gold Book Compliance Chapter now contains a section on Lending Discrimination Laws and Regulations. A federal Interagency Policy Statement on Fair Lending serves as guidance for the Consumer Financial Protection Bureau, and is a benchmark for use in fair lending examination procedures. Read federal rules here and NYS rules here.
The federal bank regulatory agencies announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank, and intermediate small savings association under the Community Reinvestment Act (CRA) regulations. The annual adjustments are required by the CRA rules and are effective January 1, 2013.
As part of its FDIC Community Banking Initiatives, the FDIC launched a draft online regulatory calendar to help community banks stay up-to-date on changes in federal banking laws, regulations, and supervisory guidance.
The calendar includes notices of proposed, interim, and final rulemakings; supervisory guidance to financial institutions issued by the FDIC and FFIEC; and joint issuances with other regulators that do not fall under the auspices of the FFIEC. It also includes selected items from other regulators relevant to the FDIC's supervisory examination programs.
The calendar is available athttp://www.fdic.gov/regulations/resources/cbi/calendar.html.
The temporary unlimited deposit insurance coverage for noninterest-bearing transaction account (under the Dodd-Frank Wall Street Reform and Consumer Protection Act) is scheduled to expire on December 31, 2012. Absent a change in law, beginning January 1, 2013, the FDIC will no longer provide separate, unlimited deposit insurance coverage for noninterest bearing transaction accounts.
Gold Book sections Transaction Account Guarantee Program, Notice Requirements, and IOLTA have been updated accordingly.
The Internal Revenue Service issued Announcement 2012-44 on November 16, 2012 providing relief to victims of Hurricane Sandy who have retirement assets in qualified employer plans and Individual Retirement Accounts (IRAs) they would like to use to alleviate hardships caused by Hurricane Sandy.
Updates have been made in the Pension chapter to reflect changes in hardship distributions, plan loans and penalty exceptions.
See:
IRS Penalty Exceptions, Hurricane Sandy Victims
The Federal Reserve Board and the Consumer Financial Protection Bureau announced 2013 increases in the dollar thresholds for Regulation Z (Truth-in-Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions.
The following sections of The Gold Book are updated:
Truth-in-Lending (Regulation Z) Coverage
Truth-in-Lending (Regulation Z) Exemptions
A new classification system for citing violations in reports of examination was effective October 1, 2012. Read more.
Pursuant to Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts (NIBTAs), including Interest on Lawyer Trust Accounts, is scheduled to expire on December 31, 2012. Absent a change in law, beginning January 1, 2013, the FDIC no longer will provide separate, unlimited deposit insurance coverage for NIBTAs at insured depository institutions (IDIs). IDIs are encouraged to take reasonable steps to provide adequate advance notice to NIBTA depositors of the changes in FDIC insurance coverage so that they may consider the impact of any change in coverage in their management of these transaction accounts.
The FDIC has provided FAQs on the changes and notifications required by the end of next month.
The FDIC encourages depository institutions to consider all reasonable and prudent steps to assist customers in communities affected by recent storms. The FDIC realizes that although the effects of natural disasters on local businesses and individuals can be devastating, they often are transitory. The FDIC recognizes that efforts to work with borrowers in the affected communities can be consistent with safe-and-sound banking practices and in the public interest.
Hurricane Sandy was a tropical cyclone that severely affected portions of the Caribbean, Mid-Atlantic and Northeastern United States in late October 2012. Many financial institutions and/or their branch offices were forced to close due to the devastation and power outages. Though the FAQs below may apply to other cases where employees are absent from work, these issues are presently in the minds of employers who were affected by Hurricane Sandy. We have added some FAQs to the Fair Labor Standards Act sections of the Human Resources chapter to address these concerns.
....thanks to all who were concerned about how we were doing!
Carlos
Jeffrey
Cheryl
Karen
The Office of the Comptroller of the Currency has issued a proclamation allowing national bank and federal savings association offices affected by Hurricane Sandy to close at their discretion.
Those offices should make every effort to reopen as quickly as possible to address the banking needs of customers.
The Consumer Financial Protection Bureau(CFPB) has published an International Fund Transfers Small Entity Compliance Guide to assist small businesses in complying with the new remittance rule, which takes effect February 7, 2013. Read more here.
There are no uniformly-accepted standards that determine the accessibility to web site-based services for persons with disabilities. The Americans with Disabilities Act of 1990 (“ADA”) provides safe-harbors for providing accessibility to physical banking locations. Proposed ADA rulemaking addresses the requirements for making goods, services, facilities, privileges and accommodations via the internet. For more details, see Websitesunder the Americans with Disabilities Actin the Compliance chapterof The Gold Book.
The Gold Book has been updated to reflect the cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2013. In general, many of the pension plan limitations will change for 2013 because the cost-of-living index met the statutory thresholds that trigger their adjustments. Several sections within the Pension chapter are updated accordingly.
The Comptroller of the Currency issued supervisory guidance on declaring a legal holiday for banks because of an emergency or natural disaster. Read more.
On August 17, 2012, Governor Cuomo signed S.219-A / A978, which became Chapter 403 of the laws of 2012. The new law amends Banking Law section 9-s regarding stop payments of electronic funds transfers (the New York version of the Electronic Funds Transfer Act.)
Text in The Gold Book addressing New York rules for stopping payment on preauthorized electronic transfers have been updated in the Compliance and Electronic Banking chapters.
A person may not be required to disclose or furnish his or her Social Security Number (SSN) for any purpose under a new law signed by New York Governor Andrew Cuomo. The new law safeguarding SSNs (A.8992-A/S.6608-A) applies to employers and certain other entities in the state. It adds new section 399-ddd to the General Business Law and becomes effective December 12, 2012. Businesses must review their practices with employees, customers and other individuals in situations where all or a part of the Social Security Number is involved.
Read more in The Gold Book. Click Here.