Congressional action is required to extend a 0.2 percent Federal Unemployment Tax Act surtax past its June 30 expiration date, and there is indication that Congress is not expected to extend the surtax. This would reduce the total FUTA tax rate to 6.0 percent for the period 7/1/2011 through 12/31/2011. Applying the full 5.4 percent credit for state unemployment taxes, except employers in a "credit-reduction state", the net FUTA rate will be .6 percent for the remainder of the year. The FUTA tax rate is currently 6.2 percent and is made up of two components: a permanent tax rate of [...]

We are rapidly approaching the end of another quarter. The last day of processing for this quarter will be Thursday, June 30, 2011. If you have any adjustments that need to be included in this quarter, please submit them to your Account Manager no later than 1:00pm on the 30th.  Adjustments may include manual checks written by you, or any checks you may have voided. For our Clients who have “APPLIED FOR” State and Unemployment ID numbers, please send them in as soon as you receive them. We will discontinue processing for this quarter at 1:00pm on the 30th. If [...]

IRS Increases Mileage Rate to 55.5 Cents per Mile WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in [...]

The Social Security Administration’s Office of the Chief Actuary (OCA) is projecting that the Social Security wage base will increase from the current wage base of $106,800 to $110,700 for 2012. This would be the first increase in wage base since 2009. The Social Security administration projects increases through the year 2020. • 2012 — $110,700 • 2013 — $114,900 • 2014 — $120,000 • 2015 — $125,400 • 2016 — $130,800 • 2017 — $135,900 • 2018 — $141,300 • 2019 — $146,700 • 2020 — $153,300 The full report is on the SSA’s website at: http://www.ssa.gov/oact/tr/2011/tr2011.pdf

During its May 12 conference call with payroll industry stakeholders, the IRS said that it has no current plans to increase the business standard mileage rate of 51 cents, even though gasoline prices have increased to levels not seen since the last time the IRS increased the rate mid-year in 2008. Ligeia Donis, Assistant Branch Chief, IRS Office of Chief Counsel, provided two reasons for IRS’s stance: There is always the possibility that gas prices could decline, and there are some indications that may happen. The IRS received some feedback from employers that the mid-year change in 2008 was difficult [...]

Help from the IRS for individuals and small businesses struggling to meet their tax obligations On February 24, 2011, the Internal Revenue Service Commissioner announced an initiative to help people get a fresh start with their tax liabilities. The initiative centers on changes to IRS collection practices that will lessen the negative impact on taxpayers. The changes include: Adjustments to IRS Lien Policies Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill Withdrawing liens in most cases where a taxpayer [...]

On May 14, 2008, a young worker named Maria Isavel Vasquez Jimenez arrived for her shift at a California vineyard. She was pregnant, and her job required her to spend long hours tying grapevines in the sun. As the day wore on, the temperature soared, eventually reaching triple digits. After nine hours of work, Maria collapsed from heat exhaustion. Two days later, Maria was dead. She was 17 years old. Maria’s death demonstrates – in the saddest way possible – the risks of heat illness faced by outdoor workers. It also demonstrates – in the most shocking way possible – [...]

The Internal Revenue Code (IRC) stipulates that all compensation received by an employee from an employer, regardless of the form it takes, constitutes wages subject to federal income and employment taxes. Compensation may be excluded from wages and exempt from taxation only where the IRC provides a specific exclusion. Please see the below link to IRS Publication 15-B for clarification of these guidelines. IRS Employer's Tax Guide to Fringe Benefits

Q1: In the past, as an employer, I was required to submit all Forms W-4 that claimed complete exemption from withholding (when $200 or more in weekly wages were regularly expected) or claimed more than 10 allowances. What Forms W-4 do I now have to submit to the IRS? A1: Employers are no longer required to routinely submit Forms W-4 to the IRS.  However, in certain circumstances, the IRS may direct you to submit copies of Forms W-4 for certain employees in order to ensure that the employees have adequate withholding. You are now required to submit the Forms W-4 [...]

We are rapidly approaching the end of another quarter. The last day of processing for this quarter will be Thursday, June 30, 2011. If you have any adjustments that need to be included in this quarter, please submit them to your Account Manager later than 1:00pm on the 30th.  Adjustments may include manual checks written by you, or any checks you may have voided. For our Clients who have “APPLIED FOR” State and Unemployment ID numbers, please send them in as soon as you receive them. We will discontinue processing for this quarter at 1:00pm on the 30th. If you [...]