© 2022 American Payroll Institute, Inc. APA Increases Member Engagement in IRSAC The APA is pleased to announce that member and Vice President Jon Schausten, CPP, has been selected to serve on the Internal Revenue Service Advisory Council (IRSAC) for a three-year term [IR-2022-09, 1-10-22]. The IRSAC, established in 1953, is an organized public forum for IRS officials and representatives of the public to discuss a broad range of issues in tax administration. The Council provides the IRS Commissioner with relevant feedback, observations, and recommendations, and submits a report to the agency at a public meeting each November. “Jon is an amazing leader and team player,” said APA’s Director of Government Relations Alice P. Jacobsohn, Esq. “As co-chair of APA’s Government Relations Task Force Federal Issues Subcommittee, he has successfully encouraged other members to share their thoughts if by his welcoming smile alone.” As Director of Payroll and HRIS for OneAmerica, Schausten oversees payroll, time and attendance, HRIS, and HR Shared Services. He earned his Certified Payroll Professional (CPP) designation in 2002 and has more than 20 years of payroll experience with union, multi-state, and international payrolls. On issues before the IRS with payroll impacts, Schausten is an expert. His keen understanding of federal and state employment taxes has been an asset to payroll professionals in addressing COVID-19 relief measures. He also has led the development of meaningful APA recommendations on IRS draft forms and instructions, including the changes to Forms W-4, 941, and 1099 under the Tax Cuts and Jobs Act. In addition to government relations activities, Schausten serves as an APA Vice President and is the current president of the Indianapolis Chapter of APA. He is also a public speaker and trainer on employment tax and other payroll-related topics. He was awarded an APA Prism Award in Management in 2017, Indiana Payroll Person of the Year in 2011 and 2019, and APA’s Payroll Man of the Year in 2020. Schausten joins other APA members participating in IRSAC: Martin Armstrong, CPP Martin Rule, CPA Nancy Ruoff, CPA and Kevin Valuet, CPP. APA members also participate in the IRS Electronic Tax Administration Advisory Committee (ETAAC): Sherice McCarthy-Hill Jim Paille, CPP and Kim Pederzani. APA Supports Colorado Unemployment Trust Fund Proposal The APA urged Colorado legislators to support provisions in Gov. Jared Polis’ budget proposal to deposit $500 million of state discretionary funds and $100 million of federal funds from the American Rescue Plan Act (ARPA) into the Unemployment Insurance Trust Fund (UITF). “That will save both employers and employees money,” Gov. Polis said in a media briefing on his budget proposal. “Our top priority is preventing large increases in the payroll tax.” By the numbers The Colorado UITF, which was fully depleted as a result of high unemployment claims during the COVID-19 pandemic, is set to be replenished through increased unemployment insurance premium surcharges paid by employers with an estimated $5.3 billion in additional payments between 2023 and 2027, according to a January 2022 report by the Common Sense Institute. The state will need $1.2 billion to repay its federal loan plus interest and $4.1 billion to fully replenish the UITF. The budget allocation will move the base premium rate to a lower rate schedule beginning in 2024 and remove the solvency surcharge in 2025 instead of 2026. This will produce a $358 million tax reduction and preserve 4,700 jobs in 2025, the Common Sense Institute said. Gov. Polis’ budget letter to the General Assembly Joint Budget Committee states that Colorado, in total, would receive about $39 billion from the federal ARPA, with $5.9 billion of that flowing through state government. The General Assembly would appropriate $3.8 billion. Addressing fraud In a November 2021 Performance Audit, the Colorado Office of the State Auditor reported that the state distributed approximately $73 million in fraudulent unemployment benefits during the first year of the pandemic, including $3.9 million to deceased people, $5 million to incarcerated people who are ineligible to work, and $102,000 to people under the age of 18. In response to the state auditor’s report, the Colorado Department of Labor and Employment expects to implement policies and procedures to timely track, investigate, and resolve all complaints and maintain data February 2022 A Supplement to Payroll Currently, Issue 2, Volume 30
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