A few things to keep in mind for the new year

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Happy New Year from DirectPay Payroll Services!

Please keep your eye out for your 2011 unemployment tax rate. North Carolina sent notification of 2011 rates in December. Other states will be mailing 2011 SUI rates shortly. Please be sure to fax, email, or mail a copy to your Account Manager to avoid incorrect reporting. Incorrect reporting can lead to late charges, penalties, and interest. As an employer, it is your responsibility to notify us of your rate each year. The taxing authorities do not notify us of your rate changes. If you have not received your rate by early February, please call your local Employment Security Commission to obtain your 2011 rate and promptly report your rate to your Account Manager.

The last opportunity to take advantage of the HIRE Act through payroll was on wages paid 12/31/10 or earlier. Any wages paid in 2011, regardless of when earned, will not be eligible for the HIRE Act credit.

In 2011 employees will be taxed at a discounted rate for Social Security. Instead of 6.2% of wages, employees will be charged 4.2% until the wage base of $106,800 is reached.The wage base of $106,800 has remained unchanged for the third year in a row. Employers will still be required to pay 6.2% of their employees wages until the wage base of $106,800 is reached in 2011.

For 2011, the IRS standard business mileage rate has been increased from 50 cents-per-mile in 2010 to 51 cents-per-mile in 2011.

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