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| Effective July 24, 2009 the Florida minimum wage is $7.25 r |
News Headline
Payroll rates and bases 2009
Soc. Sec. and Medicare 6.20%/1.45%
Soc. Sec. wage limit $106,800
Medicare wage limit unlimited
FUTA taxable wage base $7,000
Soc. Sec. and Medicare 6.20%/1.45%
Soc. Sec. wage limit $106,800
Medicare wage limit unlimited
FUTA taxable wage base $7,000
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2009
Business 55 c/mile
Relocation 24 c/mile
Medical 24 c/mile
Business 55 c/mile
Relocation 24 c/mile
Medical 24 c/mile
| Contact us: mail@abigailjoy.com |
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Effective July 24, 2008, the weekly amount exempt from creditor garnishment under federal law -
30 x the federal minimum wage - is $195.50 on July 24, 2008, and rising to $217.50 on July 24,
2009.
30 x the federal minimum wage - is $195.50 on July 24, 2008, and rising to $217.50 on July 24,
2009.
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Qualified Retirement plan limits 2009
Sec. 401 (a) (17) and Sec. 404 (l) 245 K
Sec. 408 (k) (3)(C) IRA, SEP 245 K
Simple Plan limits 230 K
Simple Pretax contribution limit 11,500
workers aged 50 or over (catch-up) 2,500
Sec. 401 (a) (17) and Sec. 404 (l) 245 K
Sec. 408 (k) (3)(C) IRA, SEP 245 K
Simple Plan limits 230 K
Simple Pretax contribution limit 11,500
workers aged 50 or over (catch-up) 2,500
News Headline
Issuing a W-2 and 1099 to the same employee in the same year is a new red flag for IRS
payroll tax examinations. The IRS believes that often the returning "independent contractor"
is doing the same job as he/she did as an employee, but being treated as an IC to avoid
payroll taxes and withholding.
payroll tax examinations. The IRS believes that often the returning "independent contractor"
is doing the same job as he/she did as an employee, but being treated as an IC to avoid
payroll taxes and withholding.
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Warning to S Corporations
IRS audits now routinely review S Corp payments to share- holders to see if payroll taxes
are being avoided by treating payments to shareholder-officers as loans or shareholder
distributions of cash or property. An officer performing services for a corporation is entitled
to payment; those payments are wages. For federal employment tax purposes, corporate
officers are employees. Avoiding employment taxes by treating compensation as cash
distributions, expense reimbursements, or loans rather than as wages is illegal.
IRS audits now routinely review S Corp payments to share- holders to see if payroll taxes
are being avoided by treating payments to shareholder-officers as loans or shareholder
distributions of cash or property. An officer performing services for a corporation is entitled
to payment; those payments are wages. For federal employment tax purposes, corporate
officers are employees. Avoiding employment taxes by treating compensation as cash
distributions, expense reimbursements, or loans rather than as wages is illegal.
American Recovery and Reinvestment Act 2009
Just signed by our new President which is designed to give some tax relief for small
business owners. It basically a tax credit up to $400.00 for working individuals and $800 for
working families. The credit is 6.2% of earned income, which is an incremental decrease
of FITW for the pay period. If you have more than $75,000 single (150.000 married) adjusted
gross income the credit is reduced by 2%.
For those business owners who use Quickbooks payroll applications according to
Quickbooks will not have to worry about these changes since they are and will be
continuously implemented.
Enhanced small business expensing is extended through 2009. Small businesses can
write off up to $250,000 in capital expenditures for the year. The write-off is reduced when
equipment purchases for the year exceeds $800,000.
Just signed by our new President which is designed to give some tax relief for small
business owners. It basically a tax credit up to $400.00 for working individuals and $800 for
working families. The credit is 6.2% of earned income, which is an incremental decrease
of FITW for the pay period. If you have more than $75,000 single (150.000 married) adjusted
gross income the credit is reduced by 2%.
For those business owners who use Quickbooks payroll applications according to
Quickbooks will not have to worry about these changes since they are and will be
continuously implemented.
Enhanced small business expensing is extended through 2009. Small businesses can
write off up to $250,000 in capital expenditures for the year. The write-off is reduced when
equipment purchases for the year exceeds $800,000.