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.

November 7, 2010

Wisconsin Unemployment Wage Base to Increase to $13,000 for 2011

Filed under: News — Tags: , , , — Vision @ 2:19 pm
Wisconsin Department of Workforce Development Secretary Roberta Gassman
Wisconsin Department of Workforce Development Secretary Roberta Gassman
The Wisconsin Department of Workforce Development has announced an increase in the taxable wage base for 2011. The wage base will increase from $12,000 for 2010 to $13,000 for 2011. Under Wisconsin Statute 108.18, rates for 2011 will be determined under Schedule A.

Schedule A Results in Highest Level of Employer Rates for 2011

Rates range from a low of 0.27% to a high of 9.80%, including solvency rates that range from a low of 0.20% to a high of 1.90%.

New Employer Rates Remain Unchanged

The new employer rates remain unchanged for 2011 and are as follows:

Employer Type Rate
Construction 6.60%
Non-Construction Under $500,000 3.60%
Non-Construction $500,000 or More 4.10%

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Wisconsin unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

September 21, 2010

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

Filed under: News — Tags: , , , — Vision @ 12:53 pm
WI Taxpayers Receive Extension of Time to File Returns and Pay Taxes
WI Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to the damage caused by the severe storms, flooding, and tornadoes in Wisconsin on July 20, 2010, President Barack Obama declared the following counties a federal disaster area: Grant and Milwaukee.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after July 19, 2010 and before August 5, 2010 as long as the deposits were made by August 4, 2010. In addition, affected taxpayers had until September 20, 2010 to file most tax returns.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by the severe storms, flooding, and tornadoes and need further information on the relief provided by the IRS.

February 15, 2010

Wisconsin Announces Special Withholding Arrangement for Wisconsin Residents Working in Minnesota

Filed under: News — Tags: , , , , — Vision @ 11:43 am

Secretary Roger M. Ervin of the Wisconsin Department of Revenue announced a special withholding arrangement for employers of Wisconsin residents working in Minnesota in response to the termination by Minnesota of the Minnesota-Wisconsin reciprocity agreement effective January 1, 2010. Under the arrangement, Wisconsin withholding will not be required in the following situations:

  • The employee is a legal resident of Wisconsin (i.e., domiciled in Wisconsin) when the wages are earned in Minnesota, and
  • The same wages earned by the Wisconsin resident and subject to the withholding of Minnesota income tax would also be subject to the withholding of Wisconsin income tax.

Employees may need to pay Wisconsin estimated tax if the elimination of Wisconsin withholding would cause them to owe $200 or more in Wisconsin income tax.

Contact Vision Payroll if you have further questions on the special withholding arrangement.

August 23, 2009

Wisconsin Releases Updated Withholding Tables

Filed under: News — Tags: , , — Vision @ 10:20 pm

The Wisconsin Department of Revenue has released a revised Publication W-166, Wisconsin Employer’s Withholding Tax Guide. Effective for taxable years beginning after December 31, 2008, the top individual rate increased fifteen percent from 6.75% to 7.75%. The withholding tables and alternate methods of withholding have been revised due to the new tax rate and bracket adjustment resulting from inflation. The revised withholding tables or alternate methods should be implemented no later than October 1, 2009. Vision Payroll has implemented the revised withholding tables and Wisconsin taxpayers should have already noticed the change in withholding.

July 22, 2009

Tip of the Week: Minimum Wage Hikes Take Effect this Week

The federal minimum wage will increase to $7.25 on Friday, July 24, 2009. Therefore, all work performed after July 23, 2009 should be compensated at the higher rate. In addition, the minimum wage will also increase to $7.25 in the following areas: Delaware, Idaho, Indiana, Maryland, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, Puerto Rico, South Dakota, Texas, Utah, Virginia, and Wisconsin. Also, the minimum wage in the District of Columbia will increase to $8.25. Contact Vision Payroll if you have any questions on the minimum wage increases.

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