Payroll News

Chicago Raises Minimum Wage, Slows Tip Credit Phaseout

The hourly minimum wage in Chicago, Illinois, is rising to $17.05 effective July 1 according to a June 8 mayoral press release.

Springfield, Pennsylvania, Enacts Earned Income Tax

Springfield Township in Delaware County, Pennsylvania, is establishing a 1% earned income tax rate for employees working in the township, under an ordinance effective July 1.

Trump’s $100,000 H-1B Visa Application Fee Rejected by Judge

A federal judge struck down a $100,000 fee President Donald Trump ordered for H-1B visa applications, providing a reprieve for US technology companies that rely on hiring skilled foreign workers.

White House Aims for Backdoor E-Verify Expansion in Grants Rule

The Trump administration is quietly pursuing the biggest expansion in decades of the federal electronic system used to verify workers’ employment eligibility via a proposal to overhaul its grant process.

Banks Warned About Payroll Schemes Tied to Unauthorized Workers

The US Treasury Department is urging financial institutions to detect and report illicit activity related to the employment of workers who are in the US illegally.

Practitioner Insights

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Ballot Initiatives on Wealth Taxes Should Get Court Scrutiny

Robert Mancuso

Capri Capital Partners

Ask Fred: Are Prizes and Awards Taxable?

Fred Basehore

F.A. Basehore & Associates

Shakira’s Spain Tax Win Shows ‘Whenever, Wherever,’ Proof Counts

Xavier Segui

NAX Law

Latest Stories

Maryland Child Labor Penalties to Equal Federal Amounts

Maryland created civil penalties for child labor violations that equal penalty amounts found in the federal Fair Labor Standards Act, under a bill that went into effect June 1.

By Emmanuel Elone

Georgia Reduces Withholding Rate, Creates Tip, OT Deductions

Georgia’s flat withholding rate was reduced following the state’s recent income tax cut, while reporting of tips and overtime will come to the state’s withholding returns in 2027, the state revenue department said June 8.

Amazon Warehouse Workers’ Covid-Test Pay Suit Revived on Appeal

A Seventh Circuit panel revived a lawsuit against Amazon from former warehouse workers seeking pay for time spent undergoing pre-shift Covid-19 screenings.

Probationary Workers Left Federal Jobs at Higher Rate, GAO Finds

Federal workers still in their probationary period left their agencies at a higher rate than all full-time employees last year amid the Trump administration’s push to cut staff, according to a Government Accountability Office study.

Swinerton 401(k) Plan Fee Challenge Settles for Nearly $500,000

California construction company Swinerton Inc. agreed to pay $497,500 to settle a lawsuit over its 401(k) plan’s administrative fees after failing to get the case dismissed last year.

Cognizant, Workers Strike Class Deal Over 401(k) Fees, Funds

Cognizant Technology Solutions US Corp. agreed to settle a proposed class action challenging the fees charged by its employees’ 401(k) plan.

Northwestern Denied Quick Appeal in Health Plan Tier Challenge

Northwestern University can’t immediately appeal a court ruling forcing it to defend allegations that its health plan wrongly offers a high-cost benefit tier that provides no extra benefits.

Empower Looks to Kill Lawsuit Challenging 401(k) Rollover Advice

Empower Advisory Group LLC said a lawsuit claiming it pushed customers out of their workplace retirement plans and into a pricey managed account program fails because the company isn’t subject to fiduciary liability under ERISA.

Trump’s No Tax on Tips Bet Overshadowed by Rising Costs in Vegas

President Donald Trump’s no-tax-on-tips policy, which originated on the campaign trail in Las Vegas and has been intended to be the cornerstone of the Republican midterm campaign, risks being drowned out as the city faces a decline in tourism and broader economic anxieties.

Congress’ Taxing Power Key to Trump Loss on $100,000 H-1B Fee

President Donald Trump’s first major defeat in legal challenges to his $100,000 fee on new H-1B workers turned on whether the policy unlawfully supplants the exclusive tax power of Congress.