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.

October 8, 2011

Ohio Minimum Wage to Increase to $7.70 per Hour for 2012

Filed under: News — Tags: , , , , , , — Vision @ 5:42 pm
David Goodman, Director Ohio Department of Commerce
David Goodman, Director Ohio Department of Commerce
The Ohio Department of Commerce announced recently that, effective January 1, 2012, the minimum wage for the state of Ohio will increase to $7.70 per hour for non-tipped employees and $3.85 for tipped employees.

Minimum Wage Applies to Employers That Gross More than $283,000 per Year

Effective January 1, 2012, the minimum wage will apply to employers who gross more than $283,000 per year, up from $271,000 in 2011.

Annual Adjustment Is Constitutionally Required

As a result of a constitutional amendment that passed in 2006 an adjustment to the minimum wage must be applied on January 1 of each year. The adjustment is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. The 1.4% increase in the CPI is rounded to the nearest five cents to calculate the amount of the adjustment.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Ohio minimum wage increase or visit our Minimum Wage Chart.

August 13, 2011

US Department of Labor Provides Funding to Assist Workers in Ohio

US Department of Labor Provides Funding to Assist Workers in Ohio
US Department of Labor Provides Funding to Assist Workers in Ohio
The US Department of Labor (DOL) recently announced a $16,233,360 National Emergency Grant that will create 1,144 temporary jobs to assist in cleanup and recovery efforts in the wake of spring storms and flooding that occurred in Ohio. Communities across 15 counties located in the Appalachian region were affected by the storms, which occurred between April 4 and May 15.

DOL Secretary Solis Comments on Grant

“The destruction caused by the floods this spring has placed a terrible strain on thousands of Ohioans, and they need to know their government stands with them as they work to make their communities whole again,” said Secretary of Labor Hilda L. Solis. “These emergency funds will help local workers provide for their families as they raze destroyed buildings, repair buildings, and clear streets and streams of debris. After natural disasters like this, it’s critical that Washington steps up to help residents rebuild their neighborhoods and families rebuild their lives.”

Funds Are Awarded to the Ohio Department of Job and Family Services

These funds are being awarded to the Ohio Department of Job and Family Services. Of the total award, $3.5 million will be released initially.

FEMA Declared 21 Counties Eligible for Assistance

On July 13, the Federal Emergency Management Agency declared 21 Ohio counties eligible for FEMA’s Public Assistance Program. This grant will assist 15 of those counties, including Athens, Belmont, Gallia, Guernsey, Hocking, Jackson, Jefferson, Lawrence, Meigs, Monroe, Morgan, Ross, Scioto, Vinton and Washington. Other counties may be added at a later date if further evaluation warrants their inclusion. More information on designated disaster areas in Ohio is available from FEMA at: http://www.fema.gov/news/eventcounties.fema?id=15052.

National Emergency Grants Are Part of Discretionary Fund

National Emergency Grants are part of the secretary of labor’s discretionary fund and are awarded based on a state’s ability to meet specific guidelines.

November 10, 2009

Ohio Minimum Wage Remains Unchanged for 2010

The Division of Labor & Worker Safety of the Ohio Department of Commerce announced recently that, effective January 1, 2010, the minimum wage for the state of Ohio will remain at $7.30 per hour for non-tipped employees and $3.65 for tipped employees. The minimum wage will apply to employers who gross more than $267,000 per year. As a result of a constitutional amendment that passed in 2006 an adjustment to the minimum wage must be applied on January 1 of each year. The adjustment is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. The 0.2% decrease in the CPI will result in no change for 2010. Contact Vision Payroll if you have any questions on the Ohio minimum wage increase or visit our Minimum Wage Chart.

October 11, 2008

Ohio Minimum Wage to Increase January 1, 2009

The Division of Labor & Worker Safety of the Ohio Department of Commerce announced recently that, effective January 1, 2009, the minimum wage for the state of Ohio will increase to $7.30 per hour for non-tipped employees and $3.50 for tipped employees. The minimum wage will apply to employers who gross more than $267,000 per year. As a result of a constitutional amendment that passed in 2006 an adjustment to the minimum wage must be applied on January 1 of each year. The adjustment is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. The 4.6% increase in the CPI will result in an increase of $0.30 for 2009. Contact Vision Payroll if you have any questions on the Ohio minimum wage increase or visit our Minimum Wage Chart.

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