| IN THE NEWS |
 |
|
For detail information
regarding IRS topics and news click
here
IRS Headliners can now be researched by volume and/or topic.
The below listed bookmark has
been set up to establish an IRS permanent link:
http://www.irs.gov/businesses/small/article/0,,id=102669,00.html
http://www.irs.gov/efile/article/0,,id=105629,00.html
|
|
Click
here to view an IRS Tax Center Template
that contains very useful information for the payroll industry. It
has links to various sections of the IRS website. |
|
|
|
|
|
|
|
2008 Fast Wage Facts….
|
FEDERAL
Agency
internet web sites:
--Internal Revenue Service: www.irs.gov
--Social
Security Administration: www.ssa.gov
--U.S.
Dept. of Labor: www.dol.gov
Minimum
Wage: $5.85
Minimum
Cash Wage: $2.13
(Tipped
Employee)
Maximum
Tip Credit: $3.72
Youth
Sub-Minimum Wage: $4.25
|
FICA
(Social Security)
Maximum
Taxable Earnings: $102,000
(Up from
$97,500 in 2007)
EE / ER
Deduction: 6.2%
Maximum
Deduction: $6,324.00
(Up from
$6,045.00 in 2007)
Self-Employment Tax: 12.4%
|
|
|
FICA
(Medicare)
Maximum
Taxable Earnings: No Limit
EE / ER
Deduction: 1.45%
Maximum
Deduction: No Limit
Self-Employment Tax: 2.9%
|
FUTA
(Employer-Paid)
Maximum
Taxable Earnings: $7,000
Percent
of Taxable Wages: 6.2%
Maximum
Credit: 5.4%
Normal
Net Tax: 0.8% |
|
| |
|
Supplemental Wage/Bonus Rate
25%
(flat
rate withholding method) |
State
Income Tax
Wage
Withholding: Wage %
Supplemental Wage/Bonus Rate: 3%
|
|
| |
|
ILLINOIS
Agency
internet web sites:
--Dept.
of Revenue: www.revenue.state.il.us
--Dept.
of Employment Security:
www.ides.state.il.us
--Dept.
of Labor: www.state.il.us/agency/idol/
Minimum
Wage: $7.50
Youth
Sub-minimum Wage: Varies by age and hours worked
|
Unemployment Insurance
Max.
2008 Taxable Earnings: $12,000
(Increased from $11,500 in 2007)
Employee
Deduction: None
Employer
2008 Tax Rates: 0.8 – 7.2%
Standard
2008 New Employer Rate: 3.4%
Voluntary Contribution Permitted: No
|
|
| |
|
|
| |
|
Pension Reform –
401(k), 403(b), SEPs, 457 Plans and SIMPLE plans
2008 2007 Catch-
up
401(k), 403(b),
457 SEPs Deferral Limits $15,500 $ 15,500 $5,000
Simple
Plans Deferral Limits $10,000 $
10,000 $ 2,500
2008 Annual
Compensation under section 401: $230,000.00
|
| |
|
2008 Standard
Mileage Rates
WASHINGTON — The Internal Revenue Service today issued the 2008
optional standard mileage rates used to calculate the deductible
costs of operating an automobile for business, charitable, medical
or moving purposes.
Beginning Jan. 1, 2008, the standard mileage rates for the use of a
car (including vans, pickups or panel trucks) will be:
-
50.5 cents
per mile for business miles driven;
-
19 cents per
mile driven for medical or moving purposes; and
-
14 cents per
mile driven in service of charitable organizations.
The new rate for business miles compares to a rate of 48.5 cents per
mile for 2007.
|
|
