Federal Government Shutdown Update

Updated October 17, 2013

On October 16, 2013, the President signed the bill ending the government shutdown and averting the debt ceiling crisis. The bipartisan agreement has put all Federal employees back to work on the morning of October 17, and normal government operations have resumed. As a result of this agreement, the government is now temporarily funded until January 15, 2014 and the debt limit has been extended until February 7, 2014.

Updated October 1, 2013

Due to both houses of Congress and the President failing to pass a budget resolution by the end of the U.S. Government’s fiscal year, as of 12:01 a.m. on October 1, 2013, the federal government has shut down.  As a result, all non-essential personnel are being furloughed until further notice.

Paychex has been closely monitoring this situation and has been in communication with our partners in the government. As of now, we’ve compiled the following update:

  • The Internal Revenue Service will continue to accept all tax payments and return filings throughout the shutdown. According to the IRS, the underlying tax law remains in effect, and all taxpayers should continue to meet their tax obligations as normal.
  • The IRS Practitioner Services phone line and all IRS Toll Free Hotlines are not taking calls. The biggest impact of this will be EIN Verification. An interim solution has been  released to overcome this challenge.
  • Federal Unemployment funding to the states will cease. After the states pay out any remaining unemployment benefits they will be forced to suspend the program or find alternate sources of funding.
  • Staff at the Social Security Administration’s Field Offices will continue to process claims and work benefit questions. All Employer wage reporting staff are being furloughed. The Employer Services toll free line will be unavailable.
  • E-Verify, the internet based employment verification system, is unavailable preventing employers from completing all tasks related to the system. The USCIS has implemented specific contingency policies for employers required to use the E-verify system, available on their website at https://e-verify.uscis.gov/esp. Employers residing in states which mandate the use of E-Verify should go to their state website for more information and/or to review alternative methods for verification where applicable.
  • As expected the US Department of Labor, the Equal Employment Opportunity Commission and the National Labor Relations Board have implemented their shutdown contingency plans which eliminate all non-essential functions performed by these agencies and limit the number of employees who remain on the job during the shutdown.

Visit this page often to view updates as they become available.