Under recently enacted legislation, contribution rates for Massachusetts employers will remain at Schedule E for 2010. Based on the low level of reserves in the fund, previous law would have required an automatic shift to Schedule G. Contact Vision Payroll if you have any questions on the new law.
Florida Governor Charlie Crist has signed a bill to delay the increase in the unemployment wage base until 2012. Originally, the wage base was to increase from $7,000 to $8,500 in 2010. The new law also adjusts tax rate calculations through 2011 and provides for quarterly installment payments. Contact Vision Payroll if you have any questions on Florida unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
The United States Department of Transportation (DOT) recently released updated Standard Industry Fare Level (SIFL) rates which are used to value employee personal use of company aircraft. The revised rates are 22.04¢ per mile for 500 or fewer miles traveled, 16.80¢ per mile for greater than 500 miles traveled and up to 1,500 miles traveled, and 16.15¢ per mile for greater than 1,500 miles traveled. The terminal charge is $40.28. These rates apply to the period from January 1, 2010 to June 30, 2010.
Contact Vision Payroll if you have any questions on SIFL changes.
The Internal Revenue Service (IRS) has released an updated version of Publication 15-A, Employer’s Supplemental Tax Guide (Supplement to Publication 15 (Circular E), Employer’s Tax Guide) for use in 2010. Publication 15-A contains information on the following areas:
- Who Are Employees?
- Employee or Independent Contractor?
- Employees of Exempt Organizations
- Religious Exemptions and Special Rules for Ministers
- Wages and Other Compensation
- Sick Pay Reporting
- Special Rules for Paying Taxes
- Pensions and Annuities
- Alternative Methods for Figuring Withholding
- Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members
In addition, Publication 15-A provides information on What’s New, Reminders, and Useful Items. Contact Vision Payroll if you have any questions on Publication 15-A.
According to the New Hampshire Department of Employment Security, because of the amount of unemployment benefits that were paid out over the last couple of years there have been legislative changes made. The department invoked RSA282-A: 84 – Emergency Power for the last 3 quarters of 2009, which added a 0.5% surcharge onto all employer tax rates. For all quarters of 2010, a full 1.0% surcharge will be added to all employer tax rates. Negative rated employers (employers whose benefit charges exceeded tax paid) will have a 1.5% added to their tax rates in addition to the 1.0% surcharge for all quarters of 2010.
New Employer rates for all quarters of 2010 will be 3.7% (includes 1.0% surcharge). Contact Vision Payroll if you have any questions on the Emergency Power Surcharge.
The Internal Revenue Service (IRS) recently released 2010 Form W-5, Earned Income Credit Advance Payment Certificate. There are four criteria for claiming advance earned income credit (EIC) payments.
- Taxpayer (and spouse if filing jointly) must have a valid social security number.
- Taxpayer (or spouse if filing jointly) must have at least one qualifying child and be able to claim the credit using that child.
- Taxpayer’s expected earned income and adjusted gross income must be less than $35,535 ($40,545 if filing jointly).
- Taxpayer must expect to claim the EIC for 2010.
The maximum credit taxpayers may receive in advance is $1,830. Eligible taxpayers must file a new Form W-5 for 2010. The 2009 Form W-5 expired December 31, 2009. Contact Vision Payroll if you have any question on Form W-5.
The Rhode Island Department of Labor and Training has announced an increase in the taxable wage base for 2010. The wage base will increase from $18,000 for 2009 to $19,000 for 2010. Contact Vision Payroll if you have any questions on the Rhode Island unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
This week’s question comes from Sherri, a payroll director. We have many employees with levies on their paychecks, I know we need to change the calculation if an employee provides a change in exemptions. Where can I find the levy exemption amounts for 2010? Answer: the Internal Revenue Service has released an updated version of Publication 1494, Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income (Forms 668-W(C), 668-W(c)(DO) and 668-W(ICS)). The table is used to calculate the amount of wages and other income exempt from levies for delinquent taxes. In addition to levies issued in 2010, employers use the revised amounts to calculate the exempt amount if the employee should provide a revised statement showing a change in filing status or exemptions. Contact Vision Payroll for assistance in automating the calculation of the exemption and levy amounts on employees’ paychecks.
The Illinois Department of Employment Security has announced an increase in the taxable wage base for 2010. The wage base will increase from $12,300 for 2009 to $12,520 for 2010. Contact Vision Payroll if you have any questions on the Illinois unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
The Idaho Department of Labor has announced an increase in the taxable wage base for 2010. The wage base will increase from $33,200 for 2009 to $33,300 for 2010. Contact Vision Payroll if you have any questions on the Idaho unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.