The Michigan Department of Treasury has released Publication 446, 2011 Michigan Income Tax Withholding Guide. Withholding Rate and Personal Exemption Amount Announced For wages paid after December 31, 2010 and before October 1, 2011, the withholding rate is 4.35% and...
Question of the Week: Do I Need To Withhold State Tax on Wages Paid to Non-Residents?
This week’s question comes from Aaron, a business owner. We have several employees who work in Massachusetts, but live in neighboring states. Do I need to withhold state tax on wages paid to non-residents? Answer: Massachusetts requires employers to withhold state tax...
Question of the Week: Can an LLC Member Receive a Paycheck from the LLC?
This week’s question comes from Nikki, an LLC member. I am a member in an LLC. My neighbor is a member and receives a paycheck, but I’ve been told that I can’t receive a paycheck. Can an LLC member receive a paycheck from the LLC? Answer: For federal tax purposes, an...
Oregon Updates 2010 Withholding Requirements for Measure 66
The Oregon Department of Revenue has completed its analysis of the changes required by the passage of Measure 66. For employees with wages less than $125,000, the Oregon Withholding Tax Tables dated January 1, 2007 remain in effect. For employees with wages of...
Question of the Week: How Do We Treat Employees Who Claim Exemption under the Military Spouses Residency Relief Act?
This week’s question comes from Tim, a Director of Payroll. One of our employees is the spouse of a military member. She is claiming exemption from state withholding for 2009. How do we treat employees who claim exemption under the Military Spouses Residency Relief...
California Releases Revised Withholding Schedules
As a result of the recent law requiring changes to income tax withholding in California, new withholding tables have been released effective for November 1, 2009 to December 31, 2009. The new tables accelerate withholding and increase the rates for supplemental wages,...
Iowa Announces Withholding Tables to Remain Unchanged for 2010
According to information provided by the Iowa Department of Revenue, the withholding tables for Iowa income tax will not change for 2010. The current tables, used for 2009 withholding, became effective April 1, 2006. Contact Vision Payroll if you have any questions on...
Wisconsin Releases Updated Withholding Tables
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...
California Increases Tax Withholding Rates
As part of the recently-enacted California Assembly Bill No. 17, signed by Governor Arnold Schwarzenegger on July 29, 2009, the withholding rates will increase effective for wages paid after October 31, 2009. The wage withholding tables will be adjusted so that the...
Arizona Withholding Tax Changes Take Effect
Effective May 1, 2009, new withholding Chart 3 took effect, increasing the percentage of federal income tax to be withheld for Arizona withholding tax purposes. Employees subject to Arizona withholding should see the impact in their next paycheck. Chart 3 applies to...
IRS Releases Publication 15 for 2009
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...
Question of the Week: Can a Partner Receive a Paycheck from a Partnership?
This week’s question comes from Carl, a partner in a partnership. I am an investor in a partnership and own a 25% interest as a partner. I also work for the business that the partnership owns. Can I be paid through payroll, have tax withheld, and receive a Form W-2?...
Question of the Week: Why Did My State Income Tax Withholding Change?
This week’s question comes from Mark, owner of an import company. I receive the same salary every week. All year, my Massachusetts income tax withholding has been the same. Now it’s gone up two weeks in a row. Why did this happen? Answer: In Massachusetts, a deduction...
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