What is the FUTA Credit? Under the provisions of the Federal Unemployment Tax Act (FUTA), a Federal tax is levied on employers covered by the Unemployment Insurance program at a current rate of 6.2% on wages up to $7,000 a year paid to a worker. The law, however, provides a credit against Federal tax liability of up to 5.4% to employers who pay state taxes timely under an approved state UI program. Accordingly, in states meeting the specified requirements, employers pay an effective Federal tax of 0.8%, or a maximum of $56 per covered worker, per year. The credit against [...]

The IRS has announced that it intends to discontinue authorizing the high-low per diem method for substantiating lodging, meal, and incidental expenses incurred in traveling away from home. Later in 2011, the IRS plans to publish a revenue procedure providing the general rules and procedures for substantiating these expenses that would omit the high-low substantiation method and a notice providing the special transportation rate. Ann. 2011-42. Part IV – Items of General Interest Discontinuance of High-Low Method for Substantiating Travel Expenses Announcement 2011-42 In Rev. Proc. 2010-39, 2010-42 I.R.B. 459, the Internal Revenue Service requested public comment on the continuing [...]

Child employed by parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to Social Security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. If these payments are for work other than in a trade or business, such as domestic work in the parent’s private home, they are not subject to Social Security and Medicare taxes until the child reaches age 21. However, see covered services of [...]

Press Release Tuesday, August 2, 2011 Press Office For Immediate Release 410-965-8904 press.office@ssa.gov Social Security Benefits Will Be Paid On Time Michael J. Astrue, Commissioner of Social Security, announced today that Social Security payments for August 3rd will be made on time and as scheduled.  Payments for August 10th, 17th, and 24th also will be made as scheduled. “I am happy to announce there will be no delay in the payment of August Social Security benefits,” Commissioner Astrue said, “which should be a relief to those people who were concerned about their benefits.  I’m pleased the President and Congress were [...]

Online Employer Online Employer is a web-based business solution to streamline business processes and administrative functions required for your organization. What is it? Online Employer is accessible 24 hours per day, 7 days per week.  You can access information from virtually anywhere with a standard Internet Connection.  So you can manage information when it’s most convenient for you. Products and services available through Online Employer include: Online Payroll Entry Payroll just became a whole lot easier.  Online Employer presents payroll remote entry services in conjunction with the best payroll software in the marketplace. You receive all of the flexibility of [...]

A U.S. Department of Labor (DOL) website - elaws® (Employment Laws Assistance for Workers and Small Businesses) - is a series of online Advisors that help employees and employers understand their rights and responsibilities under numerous federal employment laws. These interactive tools help users determine if they are in compliance with federal employment laws by asking questions, providing information, and directing the individual to appropriate resolutions. The elaws Advisors are one of a number of compliance assistance tools developed to further DOL's dedication to provide clear, accurate and easy-to-access assistance for employers, and protect the wages, health benefits, retirement security, [...]

If you represent a government entity that makes payments to contractors for products or services—or you are a contractor yourself—you may be interested in learning more about the new Federal income tax withholding provisions under Internal Revenue Code section 3402(t). These new provisions will require payers to withhold three percent from certain payments for products and services, beginning on January 1, 2013. These requirements apply to all Federal and state agencies, and certain units of local government. Learn more about which entities are required to withhold, which payees may be exempt from withholding, and which payments are subject to this [...]

Times are tough. As a business owner, would eliminating a large down payment for your workers' compensation insurance interest you? You know how important it is to manage cash flow on a day-to-day basis and that's not always easy when you have to come up with a down payment that may be as much as 25% of the premium for your workers compensation policy. Good News, DirectPay Payroll Services AND The Hartford have a solution!   XactPAY® allows you to pay your Hartford Workers' Compensation premium based on actual payrolls and one payroll period at a time. Your cash flow [...]

WASHINGTON — The Internal Revenue Service today encouraged taxpayers to guard against being misled by unscrupulous individuals trying to persuade them to file false claims for tax credits or rebates. The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers who normally do not have a filing requirement in the first place. These taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. Many of these recent scams have been targeted in the South and Midwest. Most paid tax return preparers [...]

The Social Security Administration (SSA) is changing the way Social Security Numbers (SSNs) are issued. This change is referred to as "randomization." The SSA is developing this new method to help protect the integrity of the SSN. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide. The SSA began assigning the nine-digit SSN in 1936 for the purpose of tracking workers' earnings over the course of their lifetimes to pay benefits. Since its inception, the SSN has always been comprised of the three-digit area number, followed by the two-digit group number, and ending with the four-digit serial [...]