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The State Disability Insurance (SDI) withholding rate for 2009 is 1.1 percent up from 0.8 percent. The taxable wage limit is $90,669 for each employee per calendar year. The maximum to withhold for each employee is $997.36.
States face unemployment cash crisis
Job losses mount: 1.2 million in ’08
State unemployment insurance trust funds are rapidly running out of money amid soaring job losses.
This is prompting state officials to consider raising employer taxes or curtailing benefits, while forcing them to borrow from the federal government to cover claims.
“Some states didn’t have adequate reserves built up,” said Andrew Stettner, deputy director of the National Employment Law Project.
The number of people collecting state unemployment benefits hit a 25-year high of 3.84 million, on a seasonally adjusted basis, the Labor Department said Thursday. The following day, the department announced that 240,000 jobs were lost in October, pushing the unemployment rate up to 6.5%, up from 6.1%. It’s the highest rate since March 1994. Nearly 1.2 million jobs have been lost this year.
Three states have made public their 2009 Withholding Tax Tables.
California and Minnesota have both inflation adjusted their tax tables. Nothing too exciting here.
New Mexico actually has lowered the top rate to 4.9% from 5.3% for single taxpayers making over 18050
and married taxpayers making over 31750.
PayMaster Hospitality will update these and the other 47 states as they report in. You will be able to get the latest tax updates by going to Utilities/Apply SQL Patches and checking for new updates. See the web based manual for full instructions.
Reminder: Do not update your tax tables until you are ready to run your first 2009 payroll.
Tomorrow is Tuesday, Nov. 4, Election Day. As citizens, we all have the opportunity to exercise our very precious right to vote. When we go to the polls tomorrow to vote for the offices of president, U.S. senator, congressman, governor, state senator, House members and county officials, take a look at each candidate and choose the one you feel will most likely represent you and your beliefs.
So no matter your political views, it is important that you remember to get out there and vote.
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)
From the Wisconsin UI Employer Update
U.S. restaurants are enduring their toughest time in 17 years as tight credit and falling home prices compel consumers to eat out less or spend less when they do, a National Restaurant Association economist said on Wednesday.
“This is the most challenging environment for restaurant operators since 1991,” Hudson Riehle, NRA chief economist, told Reuters. “Depending on how consumer spending proceeds in the fourth quarter, it could be the most challenging environment since the early 1980s.”
Using retail sales data released early on Wednesday, Hudson put restaurant sales growth at about 4.2 percent for the first nine months of 2008. But, when higher wholesale food costs are taken out, he said the industry’s growth is flat.
“Restaurant spending in 2008 is definitely weaker than it was in 2001, the last recessionary period. The previous weakest year was 1991 for the industry, when real sales growth actually declined by .2 percent,” he said.
So far in 2008, consumers are still spending about half of their food budget at restaurants, however it appears that spending has been at lower-cost restaurants.
“The lower the average check of the operation, the slightly more optimistic those operators are,” said Riehle.
“Quick service restaurants, which have a lower average check, in general those operators tend to be somewhat more optimistic than higher average check operations,” he said.
IR-2008-118, Oct. 16, 2008 – The Internal Revenue Service announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2009.
Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. In addition, section 415 requires the Commissioner to annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments http://canadianviagras.com/pill/generic-cialis-canada/. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) reset many of the statutory dollar amounts previously adjusted on an annual basis under section 415 of the Internal Revenue Code. Additionally, other new limitation amounts were added by EGTRRA. Please see the COLA Increases Table for pre-2002 dollar limitations.
Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit increases each year with increases in the national average wage index. We call this annual limit the contribution and benefit base. For earnings in 2009, this base is $106,800.
The OASDI tax rate for wages paid in 2009 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $106,800 would contribute $6,621.60 to the OASDI program in 2009, and his or her employer would contribute the same amount. The OASDI tax rate for self-employment income in 2009 is 12.4 percent.
The Indiana Department of Revenue has revised some of its county income tax rate tables The following counties have changed their income tax rates, effective Oct. 1, 2008.
(1) Carroll:1.15% on residents and 0.4% on nonresidents
(2) Huntington:1.6% on residents and 0.5% on nonresidents
(3) Miami: 2.54% on residents and 0.965% on nonresidents
(4) Posey: 0.4% on residents and 0.1% on nonresidents .
The deadline for counties to change income tax rates has been extended to Dec. 31, 2008.
See the [ Indiana Departmental Notice 1 ] for complete details.
Since other counties will continue to report changes and adopt new rates, PayMaster Hospitality will update the Counties as they report in. You can always get the latest IN locals by going to Utilities/Apply SQL Patches and checking for new updates. See the web based manual for full instructions.