Fourth Quarter 2009 Volume 2, Issue 4
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2010 Updates
Last year many individuals, businesses, and the government saw hard times. Some economists herald the end of the Great Recession with the close of 2009, others are more cautious. The fact is we have not seen the end of the hard times. The state and federal governments that aid the increasing number of jobless and hard-pressed businesses are running out of money and need ways to gain revenue without bankrupting the very people and businesses upon whom they are dependent. With one hand the governments are offering incentives and aid while with the other they are increasing taxes. It is an unfortunate situation for all. Now is the time to be resourceful and use all the tools you have to help steer your business through the next year—talk to your financial advisors. Also, what else can you do internally to free up some cash? Maybe now is the time to explore some marketing techniques or new products you would never have considered in the safe days. Hard times can be the foundation for the greatest innovations. Do not let a crisis get the better of you—use it to grow.
Tax Increases:
We will continue to update you with any critical state and federal tax changes. Below is a list of some state tax changes, published to date.
- Maryland—Increased unemployment tax rate from .6% — 9.0% to 2.2% — 13.5%
- Florida—Increased unemployment taxable wage base from $7,000 to $8,500
- New Jersey—Increased unemployment taxable wage base from $28,900 to $29,700
- Washington—Increased unemployment taxable wage base from $35,700 to $36,800
Aids & Incentives:
The Worker, Homeownership, and Business Assistance Act of 2009 was signed into law November 6, 2009. This law expands upon the American Recovery and Reinvestment Act of 2009, extending some of the tax cuts, credits and incentives into 2010.
- Making Work Pay Credit—Individual tax credit based on federal withholding tax table changes continues into 2010
- Energy Incentives for Businesses—Some tax incentives for businesses that invest in renewable energy production or modify existing energy resources in favor of clean/renewable energy resources continue into tax year 2010
- Net Operating Loss Carryback—Extends the benefit so that business from small to large that incurred losses in 2008 or 2009 can count their losses against taxes paid in the prior five years
Talk to your accountant for more information on how you can use these incentives. You can also visit the IRS website for more information.
E-Verify
E-Verify is a program operated by the U.S. Department of Homeland Security in association with the Social Security Administration that performs verification on eligibility of employment within the borders of the United States. Presently not all companies are required to perform E-Verify checks on their new hires, though some federal contractors are required. Radcliffe Payroll Services has enrolled with E-Verify and now your payroll representative can perform employment eligibility verifications on your behalf. However, if you choose to use E-Verify, you are required to have all of your new hires’ identification numbers verified through this process, in order to avoid discrimination. You cannot use this system to check current or potential employees. It is for new hires only and may not be used as an employment screening system. Lastly, you must post announcements that you use the E-Verify system. Other rules apply, so talk to your payroll representative for more information. You can also visit the E-Verify homepage at the U.S. Citizenship and Immigration Services’ website to learn more.
Federal Regulations: Get the Answers
The United States Department of Labor’s website is one of the most helpful tools you will find on the internet for all topics relating to employee labor and your business. Here you can find answers relating to overtime, minimum wage, leave time, and of course, the COBRA regulations. The website also has tools to help you set up a health plan and/or a retirement plan, to make sure you remain in compliance with federal regulations. Find out what mandatory posters need to be displayed in your office on this website and what you need to do to ensure a smooth hiring and termination process. You can sign up for announcements and newsletters that will help keep you informed of all federal regulation changes. After all, the more you know, the more you can successfully run your business. Don’t be surprised or confused by regulation changes.
Product of the Quarter: Employment Screening
Have you ever hired an employee only to find out that he/she has a criminal record? Have you spent time and money hiring and training a new employee only to find out those important credentials are in fact, falsified? As a business owner it is critical that you can trust your employees. Your employees are a reflection of your business and even just one misjudgment about an employee can do lasting harm, both internally and in your community. Right now the job market is flooded with applicants. If you are in the position to be hiring employees help yourself by weeding out those that could do harm to your business—not help it.
To that end we offer EasyChoice Employment Screening powered by First Advantage. First Advantage is a national leader in employment. They do more than simply perform a national database search and then overcharge you for the results. First Advantage goes the extra step by visiting local communities to make sure nothing is overlooked. You can order from a variety of reports, such as education, credit, and reference checks. Also available is information on how to create a drug-free policy for your workplace. The web-based platform allows you to view real-time progress so you can move along as efficiently as you can in the hiring process. For more information visit the Employment Screening section on our website.
Fast Alerts:
- 2010 Forms:
Go to the Tools & Forms section of our website for one-stop shopping of all forms updated for 2010.
- 1099's:
Also due by February 1, 2010 are 1099’s for non-employee compensation. Please submit tax identification numbers, names, addresses & earnings by the last payroll of the year so we can deliver these forms on time. A form to help you gather this information can be found on the Tools & Forms section of our website.
- W-2's:
Radcliffe Payroll Services will deliver your company’s W-2’s no later than January 30, 2010 as these forms are due to your employees by February 1, 2010. Urge your employees to review their pay stubs to make sure social security numbers, names, and addresses are all correct. A few minutes now will avoid delays during those crucial days leading up to April 15th! Any requested duplicates may be subject to a $5 fee per form. Keep returned W-2’s on file for four years. Paper versions must be retained if you do not have an electronic version that can be reproduced through April 15th of the fourth year.
Notes From Randy's Desk...
I want to take this time to thank you for your business. I appreciate that you have chosen us to provide you with payroll services and you can be sure that we will always reciprocate this trust with our very best efforts.
Please enjoy this holiday season with all the merriment and festivities of normal economic years, but I also ask that you remember those of us whom are less fortunate at this time. In our business and in the news we are constantly reminded of high unemployment rates, taxes, bankruptcy, and foreclosures, but we sometimes forget the faces behind these numbers. If you are able, make a contribution to your local clothes or food bank, or Toys for Tots campaign. Help spread your holiday cheer to those who need a little extra help this season.
