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- Watch out for special rules when making a Roth conversion
- Some business meals get a full deduction
- DB(k) retirement plans are new this year
- Pay yourself reasonable wages
- The kiddie tax: A basic review
- Follow IRA withdrawal rules
- Homebuyer tax credit extension
- Collectibles face special tax rules
- Rental property tax rules are complicated
- Payroll tax update
- Don't overlook the Roth five-year holding requirement
- Can you qualify for the small business health insurance credit?
- Military tax breaks are available
- Do you need to file an FBAR?
- Roth IRA conversion: Act now, pay later?
- Start your 2010 planning with your 2009 tax return
- Don't ignore employer penalty notices
- The HIRE Act offers tax breaks for hiring
- Direct deposit: Should you buy savings bonds?
- The Patient Protection and Affordable Care Act reforms health care
- Can you take a home office deduction?
- Deducting interest expense: What you need to know
- Did you receive Form 1099-C?
- Missing a W-2?
- Who has to file an income tax return?
- New law allows early deduction for Haiti relief donations
- The dependency exemption: What you need to know
- What's your status?
- Payroll - A 2010 employer update
- Review payroll reporting for 2009
- What to expect on your 2009 return
- Check these vehicle tax breaks for 2009
- Know the rules for backup withholding
- Tax issues come with gifting stock
- Hiring seasonal employees? What you need to know
- Don't get tripped up by a wash sale
- New law includes two important tax changes
- Two IRA tax breaks are scheduled to expire soon
- Take a tax deduction for worthless stock
- Withdrawals from your SIMPLE IRA may not be so simple
- Savings bonds can help pay for college
- Tax tips for first-time employers
- First-time homebuyer credit to expire November 30
- Closing your business has tax implications
- You need basis to deduct an S corporation loss
- Unemployed? Pay health premiums from your health savings account
- Some IRA terms you should know
- Employee or independent contractor? Don't misclassify workers
- Take a penalty-free IRA withdrawal for medical expenses
- Your business vehicle expenses are deductible
- Plan for the phase-out of tax breaks
- Your business could benefit from the extended net operating loss carryback
- When is income taxable, and when is it not
- IRS has a new procedure for correcting payroll returns
- Capture tax breaks when you refinance
- Prepare now for a possible disaster
- Tax law changes could affect your 529 plan
- Two reasons to review tax payments
- The COBRA credit: What employers must know
- Don't waste your tax refund
- A new vehicle could give you a new tax break
- Check out the "making work pay" credit
- Don't overlook a theft loss deduction
- Who owes self-employment tax?
- The Internal Revenue Service and Treasury Department Release Additional FBAR Guidance
- HIRE Act
- Health Care Updates
News
Payroll - A 2010 employer update
January 19, 2010
When it comes to employment tax, 2010 is a year when many things change - and much remains the same.
Here's an overview of what's new and what's not.
- Social security wage base. The 2010 wage base is $106,800, the same as 2009. Once an employee's gross wages reach that amount, you no longer have to deduct FICA tax. As in prior years, there is no limit on wages subject to Medicare tax.
- FICA and Medicare tax rates. The rates for these taxes remain the same: 6.2% for the FICA portion and 1.45% for Medicare, resulting in a combined total of 7.65%.
- Unemployment tax. The federal unemployment tax rate of 6.2% (less a credit for state unemployment payments) has not changed.
However, your state unemployment tax rate is likely to increase, and you may have to pay the higher tax on more wages.
- "Making Work Pay" credit. This refundable credit of up to $400 for single workers ($800 for married filing jointly) is still in effect during 2010. The credit is incorporated into federal income tax withholding tables, so be sure your employees give you an accurate W-4.
- Form 944 opt-out rules. Would you prefer to prepare quarterly payroll returns instead of this annual report? In 2010 you can opt out of filing Form 944.
- Business vehicle mileage. You can reimburse yourself and your employees 50¢ for each mile driven for business during 2010, a decrease from 2009's rate of 55¢.
- Identity theft safeguards. Under a new initiative, you can elect to use asterisks instead of identification numbers on certain information returns you send to vendors, such as Form 1099.
- Tip program extension. The Attributed Tip Income Program, originally set to expire December 31, 2009, is now extended to December 31, 2011.
Please call for more information on the latest employment tax rules and their application to your business.
For more information, contact Ross Rizzo at 212-404-5528, rrizzo@sb-cpa.com.
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