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!

10 Things That Good Bosses Do

This was on www.bnet.com blog by Steve Tobak recently, and I thought it was worthy of sharing.

Pay people what they're worth, not what you can get away with. What you lose in expense you gain back several-fold in performance.
Take the time to share your experiences and insights. Labels like mentor and coach are overused. Let's be specific here. Employees learn from those generous enough to share their experiences and insights. They don't need a best friend or a shoulder to cry on.
Tell it to employees straight, even when it's bad news. To me, the single most important thing any boss can do is to man up and tell it to people straight. No BS, no sugarcoating, especially when it's bad news or corrective feedback.
Manage up... effectively. Good bosses keep management off employee's backs. Most people don't get this, but the most important aspect of that is giving management what they need to do their jobs. That's what keeps management away.
Take the heat and share the praise. It takes courage to take the heat and humility to share the praise. That comes naturally to great bosses; the rest of us have to pick it up as we go.
Delegate responsibility, not tasks. Every boss delegates, but the crappy ones think that means dumping tasks they hate on workers, i.e. s**t rolls downhill. Good bosses delegate responsibility and hold people accountable. That's fulfilling and fosters professional growth.
Encourage employees to hone their natural abilities and challenge them to overcome their issues. That's called getting people to perform at their best.
Build team spirit. As we learned before, great groups outperform great individuals. And great leaders build great teams.
Treat employees the way they deserve to be treated. You always hear people say they deserve respect and to be treated as equals. Well, some may not want to hear this, but a) respect must be earned, and b) most workers are not their boss's equals.
Inspire your people. All the above motivate people, but few bosses have the ability to truly inspire their employees. How? By sharing their passion for the business. By knowing just what to say and do at just the right time to take the edge off or turn a tough situation around. Genuine anecdotes help a lot. So does a good sense of humor.

While I may not agree with every word, there are some very good points worth consideration.

Phishing Emails re EFTPS

This is an alert re emails claiming to be from the IRS re EFTPS payments. The EFTPS number states that they will not contact you via email. If you do receive one of these emails, do not click on any of the links, and instead forward it to phishing@irs.gov or call 1-800-366-4484.