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It Pay$
To Know
December,
2006
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Chicago Chapter
American Payroll Association
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P. O. Box 836 – Chicago, IL 60690 – (773) 631-8480
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Welcome &
2006 Recap |
The Chapter Board would like to
extend Season’s Greeting to everyone and a Happy New Year as we go into our
busiest time of the year. 2006 Chapter Recap
Reflecting on our 2006-year, we are reminded of our accomplishments, both professional and personal. We have all grown in our professions and experienced new challenges that have increase our knowledge and renewed our commitments to the Chapter and its membership. The 2006 Spring
CPP and FPC Review classes brought us 35 attendees who dedicated every other
Saturday to attend presentations and review payroll material which prepared
them to sit for the APA examinations or to re-certify their existing CPP /
FPC status. These individuals are
sure to provide their employers with quality service. We are thankful for the CPP and FPC
instructors who generously volunteered their time and expertise to help
provide quality training and educational support. The
Chapter held great membership meetings throughout the year and membership
attendance was excellence. Several
newer topics included 941 and W-2 reconciliation and 401(k) vs. Roth IRAs.
The evaluation surveys for these meetings indicated that they were a complete
success. During these meeting, raffle tickets were sold for the “Split the
Pot” a process where money raised is divided between a winner and their
designated charity. Several winners
gave their 50% winnings to their charities, which is another sign of
generously being influenced by the Chicago Chapter. The
Chapter was front and center while hosting the Illinois Statewide Conference.
Again, we were fortunate to have volunteers willing to share their time and
expertise to make it a success. One
of the highlights of Statewide was “Night at the Races” where attendees
participated in a mock horseracing for prizes. It was fabulous! The
speakers for the statewide workshops were on top of their game, providing
attendees with up to date payroll information. Our featured speakers added life experiences mixed with payroll
acronyms to make for wonderful presentations. They captured the audience with humor and sincerity. The Statewide Conference was truly a
success thanks to the dedication of the chapter board members and the support
of the volunteers. Another
exciting event in 2006 was Congress held in Orlando Florida, May 21-25th.
Our own Mary Kay was able to
attend the event and was quoted in saying “my mind and spirit were
re-energized. Congress to me is like a homecoming and you are welcomed with
bright grins and open arms. The knowledge is astounding and freely shared. I
would recommend that everyone attend the phenomenal conference”. This
year, the board was disappointed to be loosing Greg Seemuth to retirement.
Greg has been an outstanding, challenging chapter member since the beginning
in 1987. His retirement is taking him
and his family to beautiful Arizona and he informed us that he hopes to work
with the Phoenix Payroll Chapter once he gets settled. Good luck Greg, and thanks again for all
of the support you provided to the Chicago Chapter. To close
the 2006 year, we saved the best for last.
Our Holiday Party at the Wellington gave us the opportunity to let our
hair down and enjoy good food, music, laughter and fun. It gave us the time share stories of good
fortune, discuss our families and perhaps discuss goals for the New
Year. Recipients of the “toys for
tots” program benefited the “Off the Street Club” of Chicago. We were pleased
to have some of the children present at the evening’s festivities. You could
see the excitement in their eyes, as the holiday season seemed to excite them
for things to come. Personally, I
reflect upon my blessings and I am thankful to have been allowed to be an
associated with an award winning team such as the Chicago Chapter and I look
forward to the road ahead in 2007. Dennis
Washington, CPP Government
Liaison |
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November Meeting |
Year-End
takes more than Luck!!
Our year
end meeting was held at Allstate Insurance Co. The topics for the meeting were Preparing for Year-end and
Year-end Reconciliations presented by two individuals who are experts in
these fields. Martin Rule, CFP, CPA,
CPP presented Preparing for Year-end covering topics such as the latest
employment tax changes. Kelli Gaskin,
CPP presented reconciling tax payments to the 941 to the W2. Maria Gajda, CPP and Izola Dawson won
entrances to our Holiday Party. We
also sponsored Split the Pot with the winner being Josephine Caruso who
donated her winnings to Y Me Breast Cancer.
Good Luck to everyone because it does take more than Luck to have a
successful year-end! |
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Recognition Dinner |
FPC/CPP Recognition Dinner & Holiday Benefit The Chicago
Chapter held its annual CPP/FPC Recognition Dinner and Holiday Benefit on
November17th. It was a wonderful
evening. The Wellington provided
exceptional food from the appetizers to
the desserts. We
presented CPP pins to Karen Keiper, CPP; Ojuana Johnson, CPP; and Michael
O’Hart, CPP. We recognized our FPC
and CPP class instructors and the vendors who support us in 2006. Vickie Majors, CPP President
of the American Payroll Association was our keynote speaker. Congratulations to our special
member recognition Karen Keiper, CPP; Janet Flynn, CPP; Allison Wienberg, CPP
and Patricia Gaughan CPP. Each one
has helped to make Statewide and the chapter a success. Thanks to your generosity, The Off
The Street Club received many, many donations for the December 24th
Children’s event. Thank you to
everyone who donated a toy. I’m sure
there will be a lot of happy children who will have a Merry Christmas this
year. Once again we had many winners from the raffle drawing held at the
end of the evening. To all we thank you for your dedication and support to the
Chicago Chapter in 2006. We wish you
the best for a happy and successful 2007. |
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Survey Results |
Two questions were asked
in a recent mailing: 1.
How
many W2s do you handled? The average
amount is between
1,000 to 3,000. 2.
Do
you do them in house or outsource? 64% outsource
and 36% in-house. |
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News about our
Members 2007 Fast Wage Facts |
Member
News Michele Kudela, CPP has a new job. She is the Payroll Manager for RR Donnelly
in Bannockburn, IL. Congratulations
Michele. 2007 Fast Wage Facts….
The web address is: www.taxtalktoday.tv----------------------------------------------------------------------------------------------- More Government Updates Pension Reform – 401(k), 403(b), SEPs, 457 Plans and SIMPLE plans
2007 2006 Catch- up 401(k), 403(b), 457 SEPs Deferral Limits $15,500 $ 15,000 $5,000
Simple Plans Deferral Limits $10,000 $ 10,000 $ 2,500
2007 Annual Compensation under section 401(a): $225,000.00 2006 Standard Mileage Rates WASHINGTON — The Internal Revenue Service today issued the 2006 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2006, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
The new rate for business miles compares to a rate of 40.5 cents per mile for the first eight months of 2005. In September, the IRS made a special one-time adjustment for the last four months of 2005, raising the rate for business miles to 48.5 cents per mile in response to a sharp increase in gas prices, which topped $3 a gallon. “The IRS took the extraordinary step of temporarily increasing the standard mileage rates in the aftermath of Hurricane Katrina,” IRS Commissioner Mark W. Everson said. “We promised to continue closely monitoring the situation. The 2006 mileage rates reflect that gas prices have dropped.” The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. Runzheimer International, an independent contractor, conducted the study for the IRS. IRS Releases 2006 Federal Income Tax Withholding Tables, Pub. 15 The IRS has released the 2006 Circular E, Employer's Tax Guide (Pub. 15), which includes the federal wage-bracket (pp. 38-57) and percentage (pp. 36-37) method withholding tables effective for wages paid in 2006. The withholding allowance amounts by payroll period have changed for 2006. Also included in Circular E are the wage-bracket (pp. 60-65) and percentage (pp. 58-59) method tables for determining advance earned income credit (EIC) amounts. These tables are based on gross wages and do not require the deduction for withholding allowances. Advance EIC payments apply only to employees eligible for advance payments of the credit who have filed Form W-5, Earned Income Credit Advance Payment Certificate, with their employer. To download Circular E [Publication 15], as well as a table of withholding allowances for each payroll period provided by the APA [Allowance Table], go to: http://www.payroll.org/i4a/pages/index.cfm?pageid=139. |
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Government
News |
Qualified Transportation Fringe Benefit
For taxable years
beginning in 2007, the monthly limitation regarding the aggregate fringe
benefit exclusion amount for transportation in a commuter highway vehicle and
any transit pass is $110. The monthly limitation regarding the fringe benefit
exclusion amount for qualified parking is $215. Standard Mileage Rate
For 2007, the standard
mileage rate for the cost of operating your car, van, pickup, or panel truck
is increased to 48.5 cents a mile for business miles driven. Self-Employment Tax
The self-employment tax
rate on net earnings remains the same for 2007. This rate, 15.3%, is a total
of 12.4% for social security (old-age, survivors, and disability insurance)
and 2.9% for Medicare (hospital insurance). The maximum amount
subject to the social security part for tax years beginning in 2007 has
increased to $97,500 from $94,200 in 2006. All net earnings of at least $400
are subject to the Medicare part. IR-2006-186, December 1,
2006 WASHINGTON — The Internal
Revenue Service announced today new guidelines for taxpayers to follow to
substantiate donations to charities that were made by payroll deductions. "This makes it
easier for businesses and individuals to support worthwhile charities without
fear of losing the deduction," said IRS Commissioner Mark W. Everson. Notice 2006-110
explains how a taxpayer who makes charitable contributions by payroll
deductions can meet the new record-keeping requirements. The taxpayer
should retain a pay stub, Form W-2, or other document furnished by the
employer that shows the total amount withheld for payment to charity, along
with the pledge card that shows the name of the charity. The recently enacted
Pension Protection Act of 2006 changed the record-keeping requirements for
taxpayers claiming deductions for cash contributions to charities, including
contributions made by payroll deductions. For calendar year taxpayers,
the new rules apply to contributions made beginning in 2007. For federal workers, the
notice specifically provides that a pledge card with the name of a Combined
Federal Campaign will meet the new requirements. Form 1099-MISC Form 1099-MISC,
Miscellaneous Income, is most commonly used by third-party payers to report
payments made in the course of a trade or business to others for services.
Third-party payers should report the following on Form 1099-MISC:
There are some
exceptions. Form 1099-MISC is generally not required for payments: to a
corporation; for merchandise, telephone, freight, storage and similar items;
of rent to a real estate agent or a tax-exempt organization; to the United
States, any individual state, the District of Columbia, a U.S. possession or
a foreign government Third-party payers must
provide a copy of the form to the payee on or before Jan. 31 following the
end of the tax year. For example, for services rendered during 2006, a payer
must provide the form to its payee by Jan. 31, 2007. The payer must also file
Forms 1099-MISC with the IRS by Feb. 28 (March 31, if filing electronically). |
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State Update |
Maine Revenue Services has enacted a change to their withholding rates effective January 1, 2007. Maine is eliminating the “Married with Two Incomes” withholding rate and instead provides that a married employee may elect withholding either at the Single or Married rates. As a result, the 2007 Maine Withholding Tables booklet does not include the “Married with Two Incomes” withholding tax schedules and tables, and Form W-4ME no longer provides for the “Married with Two Incomes” option. Maine Form W-4ME has been revised to reflect this change, as follows: ¨ Single ¨ Married ¨ Married, but withholding at higher Single Rate The state of Maine is requiring that all employees who are currently withholding at the “Married with Two Incomes” rate submit a new Form W-4ME by January 1, 2007, at which time the employee must select a new withholding rate specified on the form. Employers must obtain a new Form W-4ME from all employees currently with the “Married with Two Incomes” option and update the payroll application in accordance with the new options after your last payroll of 2006 and before your first payroll of 2007. The agency has confirmed that if an employee does not provide a new W-4ME form for 2007, the employer must withhold at the Single rate with zero allowances until the employee submits the new 2007 form. Below is a link to the Maine website with the revised W-4ME form: http://www.maine.gov/revenue/forms/with/w4me.pdf San
Francisco’s Sick Leave Effective February 5, 2007, San
Francisco will be the first city in the country to require that employers
provide paid sick leave for all employees who are employed within the city
and county of San Francisco. Employees will accrue one hour of paid sick
leave for every 30 hours worked, with a cap of 40 accrued hours for small
businesses (fewer than 10 employees who work for compensation during a given
week) and 72 accrued hours for larger businesses. Accrued paid sick leave
carries over from year to year (calendar or fiscal year), but is limited to
the caps. An employer is not required to pay a terminated employee for unused
accrued paid sick leave [Proposition F]. |
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2007 Dues |
Annual Membership Dues Membership fees for the
2007 calendar year are due by January 31, 2007. It isn’t too early to get them in. Dues for 2007 will be $40.00.
Remember, your dues cover
such items as postage, invitations, the website, telephone hotline for those
tough questions, post office box, CPP and FPC pins, career development and
networking with great people. Please mail the completed
attached form and your check, made payable to the Chicago Chapter APA, to the
Chicago Chapter, PO Box 836, Chicago, IL 60690-0836. A membership form is also
available at our website: www.chicagopayroll.com |
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Charity Events |
Save those Holiday Cards What are you going to do
with all the lovely holiday cards you received? Don’t just throw them away.
Bring them to our first meeting of 2007. We will gather all the cards and send them off to St Jude’s
Research Hospital. Let’s see how big
of a bundle we can ship off. |
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Our Website For the
most current information on the Chapter please visit the chapter’s web site
at www.chicagopayroll.com When
reviewing the website be sure to check out the “In the News" section for detail information
regarding IRS topics and news. The IRS offers phone forums on various topics. Also, check out
the Job Postings. |
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Join Us
Membership Application
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1. Complete all required information on this form |
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2. Print it out |
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3. $40.00 check payable to "Chicago Chapter, American Payroll Association" |
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4. Mail to: |
Chicago Chapter,
American Payroll Association
P.O. Box 836
Chicago, IL 60690-0836
(Please allow 5 days for mail delivery)
Questions? (773)
631-8480
chicago_chapter_apa@hotmail.com
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Registration Form
for CPP/FPC Class
TO REGISTER, PLEASE TYPE IN
THE REQUIRED INFORMATION, PRINT OUT & MAIL WITH YOUR PAYMENT.
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TO CHANGE ADDRESS OR EMAIL, PLEASE TYPE IN THE REQUIRED INFORMATION, PRINT OUT & MAIL WITH YOUR PAYMENT.
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Membership
Information Change Form - Email or Address Change |
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Mail
to: |
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