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 **News** Payroll Tax Updates: - As of January 1, 2011, businesses will be required to make federal tax deposits electronically via the Electronic Federal Tax Deposit System (EFTPS). You will no longer be issued Form 8109/8109-B coupons, and the coupons will no longer be accepted by the IRS. You may be charged a 10% penalty by the IRS for each non-electronic deposit.
- New Federal Withholding Tables for 2011
On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 (H.R. 4853). The act includes a two-year extension of the Bush tax cuts for all income levels. For details on the withholding changes effective January 1, 2011, see the IRS Notice 1036, Early Release Copies of the 2011 Percentage Method Tables for Income Tax Withholding.
- Social Security Tax Changes For 2011
On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 (H.R. 4853). The act includes a one-year payroll tax cut for all workers that reduces the employee portion of the Social Security tax from 6.2% to 4.2%. This change is effective January 1, 2011.
The HIRE Act Social Security payroll tax exemption has not been extended, so it does not apply to any wages paid after December 31, 2010. *Rest assured we are continuing to work to understand how these laws will impact small business and what effects it will have on payroll related activities. As always, if you have any questions or need additional information, please feel free to call us. **We want your business to be successful, here are a few sites we think will help!** |
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