Vision Payroll

November 27, 2011

IRS Revamps Schedule A for 2011

IRS Revamps Schedule A for 2011
IRS Revamps Schedule A for 2011
The Internal Revenue Service (IRS) has issued a revamped Schedule A for Form 940 for 2011. The revised Schedule A includes a line for every state as well as the District of Columbia, Puerto Rico, and the US Virgin Islands.

Revamped Form Necessitated by Increase in Number of Credit Reduction States

A revision to Schedule A was required since the number of states and territories subject to a credit reduction increased from three in 2010 to twenty-one in 2011.

Each State Is Listed with the Relevant Rate

The individual lines for each state, DC, PR and VI are listed with the applicable credit reduction rate. Taxpayers should simply enter the wages paid in each state and multiply by that state’s rate. Wages should be entered even for states that have a zero credit reduction rate.

Not All Taxpayers Must File Schedule A

Not every taxpayer that is required to file Form 940 is required to file Schedule A. Taxpayers that pay wages in more than one state or taxpayers that pay wages in a credit reduction state must complete and file Schedule A. Taxpayers that pay wages only in a single state that is not a credit reduction state need not complete or file Schedule A.

Rely on Vision Payroll for Your Schedule A

Vision Payroll will complete and electronically file Schedule A for all tax pay and file clients. Employers will be able to download a copy of Schedule A for their records.

November 26, 2011

IRS Releases 2011 Form 940

US Virgin Islands and Twenty States Have a Credit Reduction in 2011
US Virgin Islands and Twenty States Have a Credit Reduction in 2011
The Internal Revenue Service (IRS) has released the 2011 Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, and accompanying instructions. Employers use Form 940 to report their annual Federal Unemployment Tax Act (FUTA) tax.

Twenty Credit Reduction States for 2011

There are twenty credit reduction states for 2011: Michigan, Indiana, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, Virginia, and Wisconsin as well as the US Virgin Islands. The credit reduction for most Michigan employers is 0.9% and for most Indiana employers it’s 0.6%. Most employers in the other credit reduction states and the US Virgin Islands have a credit reduction of 0.3%.

2011 FUTA Rate Decreased as of July 1, 2011

The FUTA tax rate decreased to 6.0% (before SUTA credits) on July 1, 2011. The rate for the first six months of 2011 was 6.2%. Under current law, the rate will remain at 6.0% throughout 2012. The 2011 Form 940 contains lines to report wages paid before July 1, 2011 and wages paid after June 30, 2011.

Vision Payroll to File Form 940 Electronically

Vision Payroll will file Form 940 for its clients electronically with the IRS and will not submit the paper version. Employers will be able to download a copy of Form 940 for their records.

November 25, 2011

Question of the Week: What Are the Credit Reduction States for 2011?

What Are the Credit Reduction States for 2011?
What Are the Credit Reduction States for 2011?
This week’s question comes from Victoria, a corporate controller.

Victoria asks:

I read that California is going to be a credit reduction state for 2011, but heard that they be more credit reduction states. What are the credit reduction states for 2011?

Answer: The Internal Revenue Service (IRS) has released a list of credit reduction states for 2011. There are a total of twenty states and one territory.

Standard Credit Rates Is 5.4% for 2011

Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, receive a credit 5.4% against their Federal Unemployment Tax Act (FUTA) tax. This credit is claimed on Form 940. Federal law provides for a reduction in the FUTA tax credit when a state has outstanding federal loans for two years. The credit reduction is calculated on Schedule A of Form 940.

Michigan Is a 0.9% Credit Reduction States

Since this is Michigan’s third consecutive year as a credit reduction state, the credit reduction for Michigan is 0.9% for 2011.

Indiana Is a 0.6% Credit Reduction States

Since this is Indiana’s second consecutive year as a credit reduction state, the credit reduction for Indiana is 0.6% for 2011. South Carolina, which was a first-year state for 2010, has paid off its loans and is not a credit reduction state for 2011.

Eighteen New Credit Reduction States for 2011

There are eighteen new credit reduction states for 2011. These states will have a credit reduction of 0.3% for 2011. The states are Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, Virginia, and Wisconsin. Additionally, the US Virgin Islands also has a credit reduction of 0.3%.

Contact Vision Payroll Today

For more information on the credit reduction states in 2011, be sure to contact Vision Payroll today.

July 26, 2010

KY Taxpayers Receive Extension of Time to File Returns and Pay Taxes

Filed under: News — Tags: , , — Vision @ 4:59 pm

Due to the severe storms, flooding, and mudslides in Kentucky beginning July 17, 2010, President Barack Obama declared the following counties a federal disaster area: Carter, Lewis, Madison, Mason, Pike, and Rowan. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after July 16, 2010 and before August 3, 2010 as long as the deposits are made by August 2, 2010. In addition, affected taxpayers will have until September 15, 2010 to file most tax returns. Contact Vision Payroll if you were affected by the severe storms, flooding, and mudslides and need further information on the relief provided by the IRS.

May 22, 2010

KY Taxpayers Receive Extension of Time to File Returns and Pay Taxes

Filed under: News — Tags: , , — Vision @ 6:00 pm

Due to the severe storms, flooding, mudslides and tornadoes in Kentucky beginning May 1, 2010, President Barack Obama declared the following counties a federal disaster area: Adair, Allen, Anderson, Barren, Bath, Bourbon, Boyd, Boyle, Butler, Carter, Casey, Christian, Clark, Clinton, Crittenden, Cumberland, Edmonson, Elliott, Estill, Fayette, Fleming, Franklin, Garrard, Green, Greenup, Hardin, Hart, Henry, Hopkins, Jackson, Jessamine, Larue, Lee, Leslie, Lewis, Lincoln, Livingston, Logan, Madison, Magoffin, Marion, Menifee, Mercer, Metcalfe, Monroe, Montgomery, Nelson, Nicholas, Ohio, Owen, Powell, Pulaski, Rockcastle, Rowan, Russell, Simpson, Taylor, Warren, Washington, Wayne, Wolfe and Woodford. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after April 30, 2010 and before May 18, 2010 as long as the deposits are made by May 17, 2010. In addition, affected taxpayers will have until June 30, 2010 to file most tax returns. Contact Vision Payroll if you were affected by the severe storms, flooding, mudslides and tornadoes and need further information on the relief provided by the IRS.

August 18, 2009

KY Taxpayers Receive Extension of Time to File Returns and Pay Taxes

Filed under: News — Tags: , , — Vision @ 9:07 pm

Due to severe storms, flooding and straight-line winds in Kentucky on August 4, 2009, President Barack Obama declared Jefferson County a federal disaster area. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after August 3, 2009 and before August 20, 2009 as long as the deposits were made by August 19, 2009. In addition, affected taxpayers will have until October 5, 2009 to file most tax returns. Contact Vision Payroll if you were affected by the severe storms, flooding and straight-line winds and need further information on the relief provided by the IRS.

July 1, 2009

Tip of the Week: Minimum Wage Hikes Take Effect in Three States Today

Filed under: News — Tags: , , , , , — Vision @ 10:27 pm

Employers in three states must pay higher minimum wages effective today. In Illinois, the minimum wage increases from $7.75 per hour to $8.00 per hour. In Kentucky, the minimum wage increases from $6.55 per hour to $7.25 per hour. In Nevada, the minimum wage increases from $6.85 per hour to $7.55 per hour; for employees with qualifying health benefits, the minimum wage increases from $5.85 per hour to $6.55 per hour. Contact Vision Payroll if you have any questions on minimum wages.

June 8, 2009

KY Taxpayers Receive Extension of Time to File Returns and Pay Taxes

Filed under: News — Tags: , , — Vision @ 8:57 am

Due to severe storms, tornadoes, flooding and mudslides in Kentucky on May 3, 2009, President Barack Obama declared the following counties a federal disaster area: Breathitt, Floyd, Owsley and Pike. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after May 2, 2009 and before May 19, 2009 as long as the deposits were made by May 18, 2009. In addition, affected taxpayers will have until July 2, 2009 to file most tax returns. Contact Vision Payroll if you were affected by the severe storms, tornadoes, flooding and mudslides and need further information on the relief provided by the IRS.

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