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© 2023 American Payroll Institute, Inc. Inside this issue... Supreme Court Rules HCE Was Owed Overtime, Not Paid a Salary. ..........................................................2 IRS Releases 2023 Form 941, Schedules, and Instructions. ...................................................................3 DOL Issues FAB to Address FLSA, FMLA for Remote Employees ...............................................................4 DOL Marks 30th Anniversary of FMLA With More Guidance. .................................................................5 IRS Proposes New Voluntary Tip Reporting Program. ........................................................................5 State Unemployment Insurance Taxable Wage Bases for 2023. ..............................................................6 OCSE to Present Free Webinar on Child Support Portal on March 30 .........................................................7 Appeals Court Upholds Earlier Decision on Fluctuating Workweek. ..........................................................8 IRS Announces Quarterly Interest Rates .....................................................................................9 Spring Ahead to Daylight Saving Time. .....................................................................................9 SIFL Rates for 1st Half of 2023 Announced. ..................................................................................9 Capitol Hill Update .........................................................................................................9 7th Circuit Allows Employer to Fire Employee for Misusing FMLA Leave .....................................................11 USCIS Extends PRCs for Some Petitioners Who File Form I-751 ..............................................................12 Employees Should Resolve Cases Sent to SSA for E-Verify Mismatches. ......................................................12 Payroll Solutions. ..........................................................................................................13 IRS Reminds Employers About Updated e-File Process, Fingerprinting. ......................................................13 IRS Updates Form, Instructions for Increase in Research Credit. .............................................................13 IRS Issues Memo on Valuating Digital Assets ...............................................................................14 USCIS Publishes Strategic Plan for Fiscal Years 2023-2026. ..................................................................14 State and Local News. .....................................................................................................15 March 3, 2023 Volume 31 Issue 3 IRS Finalizes Rules to Lower Electronic Filing Threshold for 2024 The IRS finalized regulations to reduce the threshold requirement for filing information returns electronically from 250 to 10 for returns required to be filed after December 31, 2023 [88 F.R. 11754, 2-23-23]. Beginning in 2024, all of a business’ information returns will be aggregated to calculate if the 10-return threshold is reached. The IRS proposed these regulations on July 23, 2021 (86 F.R. 39910, 7-23-21). The final regulations reflect changes made by the Taxpayer First Act of 2019 (TFA), which has a goal to increase electronic filing. The final regulations also withdraw regulations the IRS proposed in 2018 to amend the rules for determining whether information returns must be filed electronically. 2023 threshold is still 250 Because the final regulations will not apply until calendar year 2024 (returns filed for tax year 2023), the proposed electronic filing thresholds of 100 for returns required to be filed in calendar year 2022 and 10 returns for returns required to be filed in calendar year 2023 were not adopted. The electronic filing threshold for returns required to be filed in calendar years 2022 and 2023 remains at 250. However, the final regulations do lower the threshold to 10 for returns required to be filed after December 31, 2023. Aggregation of returns Currently, the electronic filing threshold applies individually to each type of information return. Under the final regulations, with a few exceptions, all information returns required to be filed during the calendar year will be counted in the aggregate. One exception to the aggregation rule is that corrected information returns are not counted in determining whether the 10-return threshold has been met. The final regulations clarify if the IRS’s systems do not support electronic filing for a specific return required to be filed electronically with the IRS, a taxpayer will not be required to file the return electronically. Corrected returns The final regulations require corrected information returns to be filed in the same manner as the original form (either electronically or on paper). The IRS determined that, to increase SSA to revise BSO authentication requirements. Beginning March 25, the Social Security Administration (SSA) will implement new procedures for new and existing users. Look for more information from APA as it becomes available.