Well I am back. It has been a very hectic September. My website is coming along nicely. We are building up the Payroll Resource Collection and should have it all built by the end of the year. So for now we are offering free access to this valuable collection until December 31st. Just sign up on our website.
Not only have I been busy but so has Congress, the IRS and even some of the states. Let's review what has happened so far.
1. Good news for company cell phone users. The Small Business Jobs Bil of 2010 signed by President Obama on September 27th. The bill removes cell phones from the definition of Listed Property in the Internal Revenue Code. It is effective for tax years after December 31, 2009. This means that the heightened substantiation requirements do not apply to cell phones.
2. Bad news in the same bill for employers who are late or who fail to provide informational returns. The penalties have been increased. First Tier goes from $15 to $30 and the calendar year maximum increases from $75,000 to $250,000. A complete recap of the penalties are on my website.
3. IRS is putting off mandatory reporting on Form W-2 for health insurance and making it optional for 2011. This is to allow businesses--read that payroll departments--time to adjust systems to allow for the new requirement. Read the entire news report on our website under IRS News.
4. States are beginning to announce new minimum wages for 2011. Missouri will remain unchanged for 2011. Montana is going up to $7.35. Ohio is going up to $7.40 for non-tipped employees and $3.70 for tipped if tips including. Oregon is going to $8.50.
5. States are beginning to announce tax changes as well. Oklahoma is requiring all SUI reports to be filed electronically in 2011. Iowa tax tables will remain the same in 2011.
So now we begin the year end hectic rush of news for payroll. I will keep you updated on the blog. If you need to receive news of new minimum wages etc as it breaks sign up for our news bulletin. We send out an e-mail blast as each news item is announced by the source. See my website for details and to sign up.