© 2021 American Payroll Institute, Inc. APA Member Selected to Serve on IRS ETAAC The American Payroll Association is pleased to announce that its member James Paille, CPP, has been selected to serve on the IRS’s Electronic Tax Administration Advisory Committee (ETAAC) for a three-year term [IR-2021-195, 9-28-21]. Paille joins two other APA members on ETAAC: Sherice McCarthy-Hill and Kimberly Pederzani. Established by statute in 1998, ETAAC is a public forum for the discussion of issues in electronic tax administration. The committee’s primary goal is to promote paperless filing of tax and information returns. About Jim Paille, CPP Paille has served on APA’s Board of Directors since 2002, including as APA President in 2016. He currently serves as APA’s Corporate Member Advisor, a position he has held since 2018. He also serves as chair of APA’s Executive Committee and as a member of APA’s Finance and Audit Committee. Paille has extensive tax experience. He regularly participates in APA’s Government Relations Task Force to offer his knowledge of electronic tax administration, especially in preparing recommendations to the IRS. “His sense of humor and leadership skills have helped to create a secure atmosphere for APA members to openly share information, especially on federal tax considerations,” APA’s Director of Government Relations Alice Jacobsohn, Esq., said. “Jim will be a real asset for payroll professionals on ETAAC.” As the Chief Compliance Officer and Corporate Secretary for myPay Solutions at Thomson Reuters, Inc., Paille has written many articles and reports on tax-related topics, including the Form W-4, Employee’s Withholding Certificate, earned income tax credits, federal tax rates, tax and payroll legislation, and risk avoidance. Paille also serves on the Payroll Subcommittee of the IRS’s Security Summit and previously served as a payroll representative on the IRS Advisory Council. More about ETAAC Recent recommendations by ETAAC include: Congress should establish flexible and multiyear funding for the IRS that includes increased staffing, Improve electronic access to information and filing at the IRS without compromising security, Modernize IRS processes and procedures, Increase transparency on tax returns and accounts through an IRS digital environment, Reduce the tax gap through tightening of requirements for filing information returns, and Continue to combat identity theft tax refund fraud. ETAAC also expressed support for the IRS’s Taxpayer First Act Report to Congress, which identified operational infrastructure changes. APA’s three ETAAC representatives will continue to advocate for payroll professionals on these issues. APA Testifies on Utah Proposed Earned Wage Access Bill In October, the APA testified before the Utah Senate Business and Labor Interim Committee on Earned Wage Access Services Act amendments. APA supported the concepts of transparency and consumer protections in the legislation but questioned vague language in the bill. The bill, sponsored by state Sen. Curtis Bramble, includes provisions for earned wage access (EWA) provider registration and reporting, restrictions on provider operations, state agency oversight, and annual agency reporting to the governor and legislature on providers operating in Utah. During the hearing, Sen. Bramble said that the intent of the draft bill is not to prevent EWA services in the state but to prevent predatory practices. APA comments The APA focused its comments on the EWA models in which employers play a role. These models include internal programs wholly designed and operated by employers for their employees, payroll service providers that offer their employer clients an EWA program as part of outsourced payroll management, arrangements between employers and EWA providers, and hybrids, APA said. For example, a payroll service provider may offer a choice of EWA providers or contract with a single provider. “All of these models raise different risks, benefits, and regulatory considerations but have one commonality important to payroll professionals, they require payroll data sharing,” APA said. These models do not change the existing legal and regulatory infrastructure for which payroll managers and their employers must comply. These include payment of full and fair wages and withholding for employment taxes, garnishments such as child support, and benefits such as health care insurance and retirement plans. An employer must ensure that the combination of early earned and payday wages meet all of these requirements. The APA expressed that payroll professionals would like November 2021 A Supplement to Payroll Currently, Issue 11, Volume 29
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