Training Grants and Withholding Calculator

A couple of items of interest from the latest General Ledger published by AIPB (www.aipb.org).

National Emergency Grants (NEGs) - Covers 50-90% of the hourly/salaried rate for on-the-job training if the new hire is a "dislocated worker" for firms of up to 50 employees.  "Dislocated" includes those laid off or notified they will be; those eligible for UI or who have exhausted their UI benefits; self-employed with no work due to economic factors or a natural disaster -- even displaced homemakers no longer supported by another family member.  There are several different kinds of NEGs.  Details at www.doleta.gov/neg/.
Registered apprenticeships.  Tax benefits and work force grants cover up to 75% of eligible wages for firms of up to 100 employees for combined on-the-job training and apprenticeships for 1,100+ occupations.  Benefits vary by state.  For details, contact your Regional Office of Apprenticeship (OA) at www.doleta.gov/oa/regdirlist.cfm or get in touch with your state apprenticeship agencies at www.doleta.gov/oa/stateagencies.cfm.
Workforce Investment Act Funding offers per diem subsidies for combined on-the-job training and classroom education while the new hire collects UI payments.  Details at the url tinyurl.com/yfhzjje (ignore the warning signals when you put this url in the browser; this is a perfectly safe page.)


Also:
When employees ask about how to complete their W-4's for 2011, you can direct them to www.irs.gov.  Once there, type 'calculator', click Withholding Calculator.  On a series of simple screens, they will be asked to check various boxes and will then know how to complete their W-4.  It would be doubly helpful, it appears, for employees with more than one job and would provide the best way to complete the W-4 for each.

1099 Changes in 2012 - Article

I found this article re changes to 1099 Reporting scheduled for 2012 interesting and wanted to share.  I know there are lots of questions.  I hope you enjoy it. http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/

Publication 15 (Circular E) Employer Tax Guide, Federal Withholding

Publication 15 (Circular E) Employer Tax Guide is now available at www.irs.gov.

I would also like to share the fact that of the payrolls I have run so far for 2011, some employees net pay increases from last year, while others decrease.  It seems federal tax withholding for many has increased this year.  So, even though everyone gets the two percent reduction in their social security deduction, not all will have a bigger paycheck - some will be smaller this year.

W-4 Availability

W-4 forms for 2011 are now available at www.irs.gov.

Payroll Changes Update

There is additional important information to pass along re Payroll 2011.

•  Intuit has released Payroll Update 21102, which includes the federal withholding tables for 2011 and reflects the Tax Relief Act of 2010.  If you have automatic updates turned on, you should receive this update automatically.  You can download it at any time, even if you have more payroll to process for 2010 - it will select the correct table according to your paycheck date.  It is important to be sure you have this release before processing 2011 payroll, as it contains the changes to the social security rate for employees deductions.
• Because of this change in social security rate for Employee's deductions to 4.2%, the Employer/Employee rates are no longer a 'Match' as they always have been since the Employer portion remains at 6.2%.  If you have any formulas or procedures that calculate your payroll tax liability by doubling either of these figures, they will no longer be correct. 

Please feel free to give me a call if you have any questions.  I am watching for releases of news, forms, and publications and will post again as I come across items of interest.
  

Tax Information - As It Is Confirmed

As IRS makes announcements re 2011, I will post the ones I believe to be of interest here. I expect it to be a bit hectic with the late tax decisions.

IRS Announces 2011 Standard Mileage Rates, used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 51 cents per mile for business miles driven
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

Re 'Preparing For New 1099 Reporting' - I previously reported the new requirements to provide 1099's to all vendors beginning with 2011 payments. One source has corrected that information to 2012 payments to be reported in 2013. As soon as I can confirm the effective date of the change, I will pass the information along.

Information for Year-end and New Year

Season's Greetings!
As the end of one year and the beginning of another rapidly approaches, there are a few things I would like to mention.

• If you have employees, it is a good time to ask them to be sure their address is current and their name and social security number is correct. A new W4 is not required each year, but if you need or want new 2011 W4 forms they are usually available by Jan 1st at www.irs.gov.
  

• I am recommending that you begin collecting W9's from everyone you make payments to (except employees) beginning Jan 1st 2011. As it stands, you will be required to provide payees and the IRS with 1099 forms for payments made during 2011, so it is important that this information be collected up front before making payments. The W9 forms are also available at www.irs.gov.

• If there are any changes or improvements you would like to see in the services I provide to you, please let me know! New options have become available, and I always welcome new ideas!

• Florida State Unemployment Rates - As expected, the minimum state unemployment rate will be raised in 2011 from .0036 ($25.20 per employee on $7000) to .0103 ($72.10 per employee on $7000). The maximum rate remains at .054 ($378.00 per employee on $7000). You should be receiving a form showing your new rate soon - please send a copy for my information. In addition, there will be a Special Interest Assessment to cover the interest on the funds borrowed from the federal government to cover benefit payments. You should receive a notice by early February explaining the calculation of the special interest assessment, with a coupon for the business to pay its share of the interest on the federal advances. Please send a copy of this to me as well. If you would like more information, goto www.myflorida.com/dor and follow the link.

That is all for now. I wish everyone Happy Holidays and a Happy New Year!