Payroll News

The federal minimum wage will be $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.

Of course, the states do not make it easy. Only 12 states including Texas, Indiana, Idaho, Maryland, North Carolina, North Dakota, Oklahoma, South Dakota, Virginia, Montana, Nebraska and Utah will increase the state minimum wage on July 24, 2009 when the new federal rate of $7.25 per hour is introduced. Most of these states have legislation that ties the state minimum wage to the federal rate.

On July 1 2009, ILLINOIS will increase to $8.00 and again next year Jul. 1, 2010 to $8.25.
Also on July 1 2009, KENTUCKY will increase to $7.25, ahead of the feds.

Be sure to Update your Division settings first and then you can use the Mass Assign Raises to get all your sub-minimum and minimum wage employees in compliance.

More states are available here or please consult your local DOL for the most updated news.

Filed under: Federal News, Payroll News, State News - - - Tags: FLSA, Illinois, Kentucky, Minimum Wage
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Released: June 11, 2009

A new tax law raises California’s personal income tax rates by .25 percent.  The law also reduces the dependent exemption credit to the same amount of the personal exemption credit—a $210 difference per dependent using 2008 amounts. Some taxpayers may need to increase their wage withholding now to avoid owing taxes next April.

The Employment Development Department (EDD) made new withholding tables available to employers in April, but taxpayers may be under withheld at least from January through April 2009.

The updated tax tables were issued to Paymaster users in April but you still may be underwitheld as the increase was retro active.

The new withholding tables factor in the changes for the tax rate increase only, so taxpayers claiming dependent exemption credits may still need to modify their wage withholding on Form DE 4, Employee’s Withholding Allowance Certificate, to make any needed changes to the number of allowances they claim.

Filed under: PayMaster Software, Payroll News, State News - - - Tags: California, EDD, Withholding
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http://www.bizjournals.com/albany/stories/2009/06/01/daily59.html

The outlook for the restaurant industry grew more optimistic in recent months, as the National Restaurant Association’s comprehensive index of restaurant activity registered its fourth consecutive monthly gain in April.

The Association’s Restaurant Performance Index (RPI) — a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry — stood at 98.6 in April, up 0.8 percent from March, its highest level in 11 months.

Filed under: Restaurant News - - - Tags: NRA, Slow economy
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I have been enlisted to perform my civic duty and attend jury duty on April 21, 2009.
I will be unavailable for support all day Tuesday but will return emails/ phone calls on my return to the office.
This should be a one-day event but in case of an extended trial, support calls will be forwarded to the Eric in the VA office.

Thank you for your patience in this matter.

Filed under: PayMaster Software, Uncategorized - - - Tags: Jury duty
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All three states require all payroll professionals to implement the new tax tables no later than May 1st.
Failure to do so will result in under withholding for your employees.

As of April 20th , these tax tables are available to all Paymaster customers through the Apply SQL Patch menu itm in the program. The new tax tables are easily installed, directly from the PayMaster program by going to Utilities / Apply SQL Patches and selecting Internet/Check for SQL updates. The program should then download a file called 2009-taxCA.sql, 2009-taxNY.sql and 2009-taxAZ.sql. Select the appropriate file for your withholding states and apply to all active companies by checking them off.  Of course if you have any questions or concerns feel free to call the support line.

Filed under: PayMaster Software, Payroll News, State News - - - Tags: Arizona, California, New York, Withholding
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Since Arizona withholding is based on the federal rates, the state would have seen declining revenue as a result of the ‘Making Work Pay’  federal tax tables. Therefore Arizona has released new tax tables for the rest of 2009 and 2010 to make up the difference.

10%, will increase to 11.5% from May 1, 2009 to EOY (10.7% in 2010)
19%, will increase to 21.9% from May 1, 2009 to EOY (20.3% in 2010)
23%, will increase to 26.5% from May 1, 2009 to EOY (24.5% in 2010)
25%, will increase to 28.8% from May 1, 2009 to EOY (26.7% in 2010)
31%, will increase to 35.7% from May 1, 2009 to EOY (33.1% in 2010)
37%, will increase to 42.6% from May 1, 2009 to EOY (39.5% in 2010)

An update to Paymaster for the 2009 tax year will be available momentarily.

Filed under: PayMaster Software, Payroll News, State News - - - Tags: Arizona, Stimulus Payment, Withholding
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New York Health Official Calls for Tax on Drinks With Sugar
http://www.nytimes.com/2009/04/09/health/09soda.html

A month after Gov. David A. Paterson dropped his proposal for a soda tax, New York City’s health commissioner has written an article advocating “hefty” taxes on sodas and sports drinks containing sugar. Such a tax, the article said, could be the biggest boon to public health since tobacco taxes.

The President of the American Beverage Association issued a statement on Wednesday responding to the article: “We agree that obesity is a serious and complex problem. It defies both science and common sense, however, to think singling out one product as a unique contributor to obesity will make a dent in the problem.” They dispute the link between sugar-laden drinks and obesity, saying that soft drink sales have been declining for much of this decade, as obesity rates have been rising.

Director of Yale’s Rudd Center for Food Policy and Obesity, says that based on experience with tobacco taxes, a soda tax would be “highly effective” in reducing the $79 billion in annual health care costs associated with obesity and overweight across the country.

Filed under: Restaurant News - - - Tags: Big Brother, New York, Public Health, Tax
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Starting with 2009 Forms W-2 filed in 2010, Oregon employers with 250 or more employees must electronically file Forms W-2 with the Oregon DOR.  Effective with 2010 Forms W-2 filed in 2011, the threshold for employers not using a payroll service provider will decrease to 50 or more employees. Effective with 2011 Forms W-2 filed in 2012, all employers must electronically file Forms W-2.
[Or. Adm. R. §150-316.202(3)].

Look for more states to follow. Another part of the stimulus package involved the gov’t boosting up each state’s unemployment coffers but each state had to promise to ‘modernize’ their wage data collection infrastructure.  PayMaster currently handles 38 state’s SUTA electronic formats and RS records for the year end MMREF format. Be sure to stay current to support these everchanging state specific formats.

Filed under: Federal News, PayMaster Software, Payroll News, State News - - - Tags: MMREF, Oregon, Stimulus Payment, SUTA, W2
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http://www.nytimes.com/2009/04/04/business/04restaurant.html

Now consumers are cutting back, and dining out is among the casualties. Finer restaurant chains have been hit hard, and so have the casual sit-down places that flooded suburban shopping centers and tourist districts across the country, aimed straight at middle American tastes.

A few chains have boarded up already. Many others are going into survival mode, trying to renegotiate their loans, cutting staff, offering bargains to customers and closing less profitable restaurants. Analysts predict thousands more restaurants could close in the next year or two.

Filed under: Restaurant News - - - Tags: Slow economy
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WASHINGTON

“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman.

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.  A 5% state sales tax would earn you a maximum of deduction of $2475.

IRS also alerted taxpayers that the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.

Filed under: Federal News - - - Tags: Auto industry, IRS, Slow economy, Stimulus Payment
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