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FAQ - Employer Tax Questions
   
 
   
 
Q. What is the tax rate for new employers?
A. For all quarters in 2007, the new employer rate is 1.7% (2.7% less the 1.0% Fund Balance Reduction.)
Q. What is the taxable wage base in New Hampshire?
A. The taxable wage base is $8,000.
Q. Is there anyone that can help me with my Status Report and the Quarterly Tax and Wage Reports?
A. Yes! Each of our local office areas have a Field Agent on staff. They are experts at helping employers figure out their taxes. They will often come to your place of business to assist. Among assistance a Field Agent can provide to employers: help registering with NHES, filling out forms and doing the calculations. Our Field Agents are very knowledgeable in all aspects of the law and questions you may have about other services.
Please contact the office nearest you and ask for the Field Agent adobe acrobat.
Q. Are spouses and family members' wages reportable?
A. As of 1/1/97, work performed for an owner of a business by his or her parents of any age, or by the spouse, or by his or her children under age 21, are NOT wages and are not reportable nor usable for tax nor unemployment compensation benefit purposes. This applies only to proprietorships and single member LLC’s and in some instances partnerships. It does not apply to corporations, as they are by law unique entities without relatives.
Q. Are cafeteria plans defined in section 125 taxable for unemployment?
A. Yes. Employers contributions towards a non-cash benefit would be considered wages if the employee had the option to receive cash payments instead, whether or not he/she exercised such option.
Q. Are wages diverted into a 401K plan taxable for unemployment?
A. Yes. 401K diverted wages are taxable for Unemployment.
Q. What forms do I need to complete once I hire my first employee?
A. You must complete an Employer Status Report adobe acrobat. This form can be obtained under Employer Publications or you may call the Status unit at (603) 228-4033.
Q. What forms do I need to correct my quarterly tax reports if I just discovered that I erroneously calculated the excess wages?
A. You can obtain the Tax and Wage Adjustment Form adobe acrobatunder Employer Publications or you may call the Employer Accounts Section at (603) 228-4050.
Q. The IRS has recently advised me to contact the state because of a discrepancy between the federal and state wages reported. What form do I need?
A. You can request a recertification from this department which will certify the amount of wages reported on form 940C. Simply call (603) 228-4141.
Q. Do I have to report domestic employment?
A. Yes, all cash wages paid to domestic employment are reportable, if those wages are also subject to FUTA.
Q. What effect will the benefit charges on my account have on my tax rate?
A. Benefit charges are only one of the factors that go into determining your tax rate. Other factors are all your taxes paid and your annual taxable wages. Every year we merit rate employers. The formula comes up with an account reserve by subtracting all the benefits charged from all the taxes paid. This account reserve is divided by the average taxable wages over the last three years to come up with a reserve ratio. This reserve ratio is then applied to a tax schedule to determine the appropriate tax rate. The tax schedule is in your "Employer Handbook" adobe acrobat or can be requested by calling (603) 228-4141.
Q. When are the tax rate determinations mailed?
A. They are mailed out each September.
Q. Do I still have to file the quarterly tax report even if I have not paid wages in a calendar quarter?
A. Yes. The report must be filed for every quarter even though no employment was provided in that quarter and no taxes due.
Q. What happens if I don't file or pay the tax?
A. Failure to submit Tax and Wage Reports when they are due generates a late filing fee of 10% of the tax due, or a minimum of $25.00 for each occurrence. There is also an interest charge of 1% of the tax due for each month, or any part of the month, the tax is outstanding.
Q. Are corporate officers liable for any unpaid taxes of a business?
A. Yes. All corporate officers and any other person in a managerial capacity of said corporation are individually responsible for any unpaid taxes.
Q. Why have I been selected for an audit?
A.

A continuing operation of the Department is the Field Audit Program which is carried out by Field Agents. The Department is required to conduct a number of audits per year. These audits are sometimes made as part of collection activities and to ensure accuracy of reports. If you have been selected for an audit and have any questions, call the Field Agent assigned to do the audit.

Information about the Field Audit Program adobe acrobat
Q. Whom may I call if I have questions concerning the benefits being charged to my account?
A. You may call the Supervisor of Wages/Special Programs at 656-6607.
Q. Why is my account being charged for benefits being paid to XXXX?
A. The question requires record review. Call the Wage/Special Programs at (603)656-6607 and give them the name and social security number of the claimant, your phone number, and a time to call. You will have the answer within 48 hours.
Q. Do I have to report my New Hires?
A. Yes. You must file a New Hire Report adobe acrobatto this department within 20 days of the date of hire. For more information, see New Hire Reporting - An Employers Guide. adobe acrobat
Q. How do I calculate my excess wages - line 9?
A. Microsoft EXCEL Spreadsheet that computes taxable and excess wages.

 
 
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