Don't HR Alone #9 - CDHP's, Tax Penalties, and Texarkana


Michigan interest rate increased for second half of 2017 — MICHIGAN — Interest Rates

The annual rate of interest due on Michigan tax deficiencies and overpayments for the period from July 1, 2017, through December 31, 2017, is increased from 4.5% to 4.7%. The effective annual rate of 4.7% was established at one percentage point above the adjusted prime rate charged by three commercial banks to large businesses.

(Revenue Administrative Bulletin 2017-9, Michigan Department of Treasury, May 26, 2017.)

Arkansas discusses withholding requirements for nonresidents — ARKANSAS — Withholding and Reporting

The Arkansas Department of Finance and Administration issued an opinion clarifying that residents of Texarkana, Texas, are exempt from personal income tax on the portion of income earned from employment or business activity in Texarkana, Arkansas, but not on income earned elsewhere in Arkansas. Further, an Arkansas-based employer making payments of wages to employees is required to deduct and withhold tax from the portion of their wages earned for services performed in the state. Lastly, the department clarified that a nonresident employee having income from activities in Arkansas must file the state income tax return reporting his/her income and allocating the portion of such income on that return.

(Revenue Legal Counsel Opinion No. 20170508, Arkansas Department of Finance and Administration, May 16, 2017.)

CDHPs continue to gain popularity — SURVEY RESULTS

Consumer-driven health plans (CDHPs) are continuing to gain market share in the U.S., and are having the intended effect of making people more involved in their own health care, according to recent research from the Employee Benefit Research Institute (EBRI) and Greenwald & Associates. The Consumer Engagement in Health Care Survey found that 14 percent of privately insured adults were enrolled in a CDHP (defined as enrollment in a high-deductible health plan (HDHP) combined with a health sa