Payroll News » 2009

Michigan’s 2009 Withholding Table released

Ted — Mon, 17 Nov 2008 15:00:25 +0000

Michigan’s tax rate remains the same at 4.35% but the Personal Exemption Amount has increased to $3,600.

The 2009 exemption amount is $3,600 per year times the number of personal and dependency exemptions allowed under the IRC. An employee may not claim more exemptions on the MI-W4 than can be claimed on the employee’s federal income tax return.

IRS Announces 2009 Federal Tax Rates

Ted — Mon, 10 Nov 2008 14:24:27 +0000

For 2009, personal exemptions and standard deductions will rise and tax brackets will widen because of inflation adjustments announced today by the Internal Revenue Service.

By law, the dollar amounts for a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting virtually every taxpayer, are being adjusted for 2009. Key changes affecting 2009 returns include the following:

* The value of each personal and dependency exemption, available to most taxpayers, is $3,650, up $150 from 2008.
* The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
* Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008.
* The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $5,028, up from $4,824. The income limit for the credit for joint return filers with two or more children is $43,415, up from $41,646.

Information about the pension and retirement plan-related changes can be found in
IR-2008-118. Other inflation adjustments are described in Revenue Procedure 2008-66.

2009 SUTA Wage Bases announced

Ted — Fri, 31 Oct 2008 13:03:38 +0000

States increasing their taxable wage bases in 2009:

Idaho ($33,200)
Illinois ($12,300)
Iowa ($23,700)
Minnesota ($26,000)
Missouri ($12,500)
Montana ($25,100)
Nevada ($26,600)
New Jersey ($28,900)
New Mexico ($20,900)
North Dakota ($23,700)
Oklahoma ($14,200)
South Dakota ($9,500)
Washington ($35,700)
Wisconsin ($12,000)
Wyoming ($21,500).

States with no change in 2009:

Alabama ($8,000)
Arizona ($7,000)
Arkansas ($10,000)
California ($7,000)
Colorado ($10,000)
Connecticut ($15,000)
Delaware ($10,500)
District of Columbia ($9,000)
Florida ($7,000)
Georgia ($8,500)
Indiana ($7,000)
Kansas ($8,000)
Kentucky ($8,000)
Maine ($12,000)
Maryland ($8,500)
Massachusetts ($14,000)
Michigan ($9,000)
Mississippi ($7,000)
Nebraska ($9,000)
New Hampshire ($8,000)
New York ($8,500)
Ohio ($9,000)
Pennsylvania ($8,000)
Puerto Rico ($7,000)
Rhode Island ($14,000)
South Carolina ($7,000)
Tennessee ($7,000)
Texas ($9,000)
Vermont ($8,000)
Virginia ($8,000)
West Virginia ($8,000).

States that haven’t announced for 2009:

Alaska ($31,300)
Hawaii ($13,000)
Louisiana ($7,000)
North Carolina ($18,600)
Oregon ($30,200)
Utah ($26,700)
Virgin Islands ($21,800)