Intuit Payroll Rate Changes

Well, isn't this just the season for changes...

Intuit has announced rate changes that will become effective in August and September of this year.

When it is time for each of you to renew, I invite you to give me a call so we can discuss what options you have and which may be the best for you.

Intuit has made changes, improvements, and additions to their payroll service offerings that may not have been available when you initially began using payroll, so before you renew you may want to explore what's new.

I look forward to hearing from you!

FUTA Rate Reduction July 1st 2011

The current FUTA rate of 6.2% (which has been in effect a long time) includes a temporary surtax of .2% that expires June 30, 2011. (Unless Congress extends it, which doesn't seem to be the case.)

If you get the maximum credit of 5.4%, this has always meant a rate of .8% FUTA.  So, with the .2% reduction - effective July 1, 2011 you will have a FUTA tax rate of .6%.

I have run a July payroll in QuickBooks, and confirmed that the rate did indeed calculate at .6% correctly.

I realize that this is not something you may notice, but wanted to keep you informed.  Unless there is a change, this will complicate the 940 form at the end of the year... but we won't worry about that for now.

IRS Increases Mileage Rate

Greetings All
I do like passing along good news, no matter how small...

IRS has increased the standard mileage rate for the final six months of this year.  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.

For the full article, click on the link below.

IRS Increases Mileage Rate

That's all for now!