At software shops like TempWorks, we have it easy when it comes to the new healthcare legislation.
It’s a different story for the IRS.
Perhaps most challenged by the law’s complexity, the IRS carries the double burden of interpreting the new law and implementing it. The interpretation will involve managing bewildering changes to Form 941, the Employer’s Quarterly Federal Tax Return.
For in-depth coverage of those changes, see the American Staffing Association, which has been covering the issues in detail.
As it stands now, the IRS needs to come up with a form for second quarter 2010 reporting that takes into account “tax holiday” rules that impact first quarter.
Besides implementing the "tax holiday" rule itself, the IRS will also need to modify varied mainframe software systems to adjust second quarter taxes due by the first quarter qualifying wages covered under the new law. You might think this is a simple task – just take the first quarter amount and subtract it from the second quarter’s amount due. But we’re not dealing here with paper calculations.
We’re talking computer systems written long ago. The original developers are long gone.
The changes involve confusing, fixed-length records with ambiguous usage wrought by years of confusing requirements.
Here’s the best thing that can happen to my coding buddies at the IRS: Virginia will mount legal challenges to the law that will prevent its implementation indefinitely.
Meanwhile, we will overthrow the communist bums that voted for this takeover mess and begin giving the economy back to the people.