New Social Security Business Services Online (BSO) Login Requirements

The Social Security Administration’s (SSA) Business Services Online (BSO) provides a variety of services to employers, including the social security verification system (SSNVS), registration services, W-2 file uploads, and the ability to track file status and notices.

Effective March 25, 2023, the method of signing up for a BSO account has changed. Individuals can use their personal mySocialSecurity account that was created before September 18, 2021, or an existing Login.gov or ID.me credential.

Individuals who do not have a SSA BSO account must first create one from the Social Security sign in page or register with either Login.gov or ID.me and then link that login with the SSA BSO website after verifying their identity. The identity verification process will include providing a state ID, a personal credit card number, and/or a biometric scan of the registrant’s face, depending on the secure login method used. Once the BSO account is created, the individual can then register with the SSA BSO website as an employer.

Since the SSA BSO website includes the individual’s SSN and other personal information, it cannot link to a SSA BSO account in someone else’s name. In addition, because the login credentials are associated with a particular individual’s identity, your Mize representative is not able to create this account on your behalf.

Social Security Mismatch Letters

On a related note, the Social Security Administration is no longer mailing out social security number mismatch letters. The employer is responsible for logging into the company’s BSO account to retrieve any mismatch letters and resolve any mismatched SSNs. These letters do not come to Mize on your behalf, and we do not have access to employer BSO account logins or business information.

IRS and Many States Provide Extended Deadlines Due to Disaster Relief

Recent storms have affected many parts of the country, making it difficult for businesses to comply with payroll tax filing and payment deadlines. The IRS and many states have provided extended deadlines to provide a grace period in these situations. You can find a detailed list of states and new deadlines on the IRS website by clicking here.

In addition, here are links to specific state disaster information:

What to Do When Employees Work in a Different State than the Employer

If your business is located near a state line, or if you have remote employees, you’ve probably run into the issue of an employee who resides in one state but works in another. It seems like an easy answer, right? Not quite. Here’s what employers need to know about state tax reciprocity:

If the two states have a reciprocity agreement, employees pay taxes in the state in which they live, not the state in which they work. For instance, Arizona has a reciprocity agreement with California, so an employee who lives in Arizona would not have to pay California state taxes. This also means employees only have to file a tax return in their resident state. In this situation, the employee fills out a withholding exemption request form for the nonresident state and submits it to their employer.

However, if the affected states do not have a reciprocity agreement, employees are required to file state income tax returns for all states in which they live and work. However, that doesn’t mean they have to pay duplicate taxes.

There are nine states without state income taxes, so employees who work in those states but live in another state don’t need to file or pay returns in the employer’s state. However, they are responsible for filing and paying state taxes in the state in which they live. Those states are:

Alaska	Florida
Nevada	New Hampshire
South Dakota	Tennessee
Texas	Washington
Wyoming

Here’s a list of states with reciprocity tax agreements with certain other states, along with a link to the appropriate exemption form:

States With Reciprocity Agreements

State	Reciprocity Agreements With:	Form
Arizona	California, Indiana, Oregon, Virginia	WEC
Illinois	Iowa, Kentucky, Michigan, Wisconsin	IL-W-5-NR
Indiana	Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin	WH-47
Iowa	Illinois	44-016
Kentucky	Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, Wisconsin	42A809
Maryland	Pennsylvania, Virginia, West Virginia, Washington, DC	MW507
Michigan	Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin	MI-W4
Minnesota	Michigan, North Dakota	MWR
Montana	North Dakota	MW-4
New Jersey	Pennsylvania	NJ-165
North Dakota	Minnesota, Montana	NDW-R
Ohio	Indiana, Kentucky, Michigan, Pennsylvania, West Virginia	IT-4NR
Pennsylvania	Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia	REV-419
Virginia	Kentucky, Maryland, Pennsylvania, Washington, DC, West Virginia	VA-4
Washington D.C.	Maryland, Virginia	D-4A
West Virginia	Kentucky, Maryland, Ohio, Pennsylvania, Virginia	WV-IT-104NR (page 2)
Wisconsin	Illinois, Indiana, Kentucky, Michigan	W-220

*Virginia and Ohio’s agreements are conditional. Virginia residents are only eligible for the reciprocity agreement if they commute to Kentucky for all regular workdays. Ohio residents only qualify if they do not own 20% or more equity in an S corporation.

Other State News

Maryland

Maryland has delayed the implementation of their paid family and medical leave insurance (FAMLI) program until October 1, 2024. The program was originally scheduled to begin October 1, 2023, but has been delayed a year. The withholding and contribution rate effective October 1, 2024, will be established by the Maryland Department of Labor on October 1, 2024, and will be updated annually.

Colorado

Beginning 1/1/23, employers must provide written notice to all employees of the availability of the federal earned income tax credit, the state EITC, the federal child tax credit, and the state child tax credit. Employers must provide this notice at least annually through electronic (email/text) or paper methods. The notice must be provided in English as well as any other language that the employer typically uses to communicate with employees.

An example of this notice has not yet been released, but we will provide one once it’s available.

Maine

The new Maine Tax Portal is now available for employers to use for filing taxes and payments. The old reporting system called Maine Employers Electronic Tax Reporting System (MEETRS) will be deactivated on May 31, 2023.

Oklahoma

Employers that fail to electronically file an annual reconciliation return via OkTap within 30 days of the January 31 deadline may be subject to a penalty of up to $1,000.

Wisconsin

Online payments for employer unemployment insurance payments can now be made online. Payments made by credit or debit card will be subject to a nonrefundable 2% (previously 1%) service fee.

When it comes to Mize Payroll 2.0, Ann knows it all! Here are two tips and tricks she's put together for you.

Update to Security Enhancements

Have a tip or trick you'd like Ann to cover? Let her know, ahobart@mizecpas.com

Tools You Can Use

Electronic Pay Solutions

Employees like to get paid on time. Sometimes that’s harder than it might seem. With delivery issues, severe weather, and wildfires frequently in the news and maybe even your back yard, getting paychecks to employees can be difficult. That’s where electronic payroll solutions like direct deposit and pay cards can be a great solution.

Electronic pay solutions can also save you money. The costs of both printing and delivery are going up, which increases your payroll fees. With direct deposit and pay cards, employees can access their pay stubs and year-end Forms W-2 and 1095 online through the Mize payroll portal.

Read more about the benefits of electronic pay from our Insights blog by clicking here.

Earned Wage Access

Even if employees get paid on time, sometimes that money doesn’t stretch until the next payday. Stuff happens – the washing machine overflows, the car breaks down, or somebody gets sick. Sometimes employees need money sooner than later, but there aren’t a lot of great options. Payday loans, overdrawing their checking account, and incurring credit card debt can chock up high fees. The employer can give a pay advance or loan, but that can put you in a difficult position.

That’s where an Earned Wage Access (EWA) program can help. EWA programs are a new employee benefit that advances employees a certain amount or percentage of their accrued wages. The employee’s next paycheck is automatically reduced by the advanced amount, with no risk or liability to the employer.

For more information about ZayZoon, the EWA program offered through Mize CPAs, click here or visit with your Mize professional.

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