This week’s question comes from Rick, a corporate controller. We received a notification from our state unemployment agency that we may want to make a voluntary payment toward SUTA. Should we make a voluntary additional payment? Answer: For employers that are in...
Roger B. Madsen, Director of the Idaho Department of Labor announced recently that the 2009 unemployment wage will increase from $32,200 to $33,200. In addition, tax rates (including the workforce rate) will range from 0.447% to 5.4% and the standard rate will be...
This week’s question comes from Rob, a business owner. I paid all my federal and state unemployment taxes and didn’t lay anyone off. Why is my unemployment rate going up? Answer: Generally, your state unemployment rate is determined by the ratio of your account...
Maureen T. O’Donnell, Director of the State of Illinois Department of Employment Security announced recently that the 2009 unemployment wage base has increased from $12,000 to $12,300. O’Donnell, appointed by Governor Rod R. Blagojevich in August, had served as Acting...
The Internal Revenue Service (IRS) recently released 2009 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...
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...
The Internal Revenue Service recently released an updated version of Publication 15-B, Employer’s Tax Guide to Fringe Benefits. Publication 15-B provides an overview of fringe benefits as well as sections on fringe benefit exclusion rules and fringe benefit valuation...
According to a recent article in the Wall Street Journal, celebrity chef Wolfgang Puck would like to eliminate the minimum wage for waiters. In a story on resolutions for 2009, Puck was asked, “What problem should your industry or professional community tackle more...
The Internal Revenue Service recently released an updated version of Publication 15, (Circular E) Employer’s Tax Guide. In addition to providing information on classifying employees, determining which types of payments are considered wages for federal employment tax...
Employers often question whether employees who work in one year and are paid in the next year should have the wages reported in the year the work was performed or the year the wages were paid. Generally, wages are reported based on payment date. For example, if the...
The standard mileage rates for the use of automobiles beginning January 1, 2009 will be 55 cents per mile for business miles driven and 24 cents per mile driven for medical or moving purposes, the Internal Revenue Service announced yesterday in IR-2008-131. The new...
This week’s question comes from Matt, a sales rep: Every week there’s a deduction for FICA on my paycheck. Two weeks ago, the deduction was lower than usual and last week there was no deduction at all. Why did my FICA tax deduction stop? Answer: The FICA (Federal...
The Washington Department of Labor and Industries announced recently that pursuant to Revised Code of Washington §49.46.020, the minimum wage for the state of Washington will increase to $8.55 per hour effective January 1, 2009. The law requires an adjustment to the...
Are you ready to make a higher contribution to your retirement plan in 2009? Did your company establish an HSA and you’re not sure how much you can put away? Do you need to know the maximum Social Security tax that can be withheld? The election results are in and so...
Vermont Governor James H. Douglas announced recently that pursuant to Title 21 of the Vermont Statutes, Annotated §384, the minimum wage for the state of Vermont will increase to $8.06 per hour effective January 1, 2009. The law requires an adjustment to the minimum...
The Labor Department of the Arizona Industrial Commission announced recently that pursuant to Arizona Revised Statutes §23-363, the minimum wage for the state of Arizona will increase to $7.25 per hour effective January 1, 2009. The law requires an adjustment to the...
In IR-2008-118, the Internal Revenue Service (IRS) announced an increase for 2009 to the compensation limitation for Simplified Employee Pension (SEP) plans. Under §408(k)(2) of the Internal Revenue Code of 1986, SEP contributions are generally required for any...
In IR-2008-118, the Internal Revenue Service (IRS) announced an increase for 2009 to the Highly Compensated Employee Limitation under §414(q)(1)(B) of the Internal Revenue Code of 1986. Non-discrimination testing in some types of retirement plans limits the deferral...
In IR-2008-118, the Internal Revenue Service (IRS) announced increases to the limits on deferral contributions for 2009 under §401(k), §403(b), and §457(e)(15). These limitations are codified in those sections of the Internal Revenue Code of 1986 (IRC). Under IRC...
In IR-2008-118, the Internal Revenue Service (IRS) announced increases to the limits on SIMPLE plan contributions for 2009. The limitation for SIMPLE plans is codified in §408(p)(2)(E) of the Internal Revenue Code of 1986 (IRC). This section also requires annual...
This week’s question comes from Roseanne, a payroll manager. When will the 2009 Social Security wage base be announced? Answer: The US Department of Labor has just announced that the 2009 Social Security Wage Base will increase by $4,800 to $106,800. Since wages are...
The Montana Department of Labor and Industry announced recently that pursuant to Montana Code Annotated 39-3-409, the minimum wage for the state of Montana will increase to $6.90 per hour. The law requires an adjustment to the minimum wage that must be calculated no...
The Division of Labor of the Colorado Department of Labor and Employment recently promulgated Colorado Minimum Wage Order 25 which increases, effective January 1, 2009, the minimum wage for the state of Colorado from $7.02 to $7.28 per hour. Pursuant to the inflation...
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...
On or before June 30 of each year the Commissioner of the Minnesota Department of Employment and Economic Development must calculate an amount equal to sixty percent of Minnesota's average annual wage, rounded to the nearest $1,000. This amount is the taxable wage...
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