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California employers, businesses and accountants can use our California payroll software to prepare payroll, calculate California withholding and print California payroll forms DE-6 and DE-7. To learn more about our payroll tax solution, please visit our website at www.realtaxtools.com .

The California Employment Development Department (EDD) will significantly expand its e-Services for Business in the spring of 2011. Employers will be able to keep track of their accounts and do much of their business with EDD’s Tax Branch over the Internet. These new services will enable them to quickly file returns, make payments, view account information, and manage their accounts securely online.

The new system will also eliminate the annual reconciliation process for employers starting with the 2011 tax year. New quarterly tax forms for next year are currently under development to allow for reporting total Unemployment Insurance (UI) taxable wages and State Disability Insurance (SDI) taxable wages. This will result in faster refunds and identification of amounts due each quarter.

This Internet-based system is the most significant change in the payroll tax process in the past 25 years. It will revolutionize the way EDD’s Tax Branch does business and communicates with employers.

The new Expanded e-Services for Business, quarterly forms, and redesigned account statements will support EDD’s goal to “make employment taxes a breeze” for California employers.

Try our payroll software today by downloading a free demo.

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Businesses in Ohio can use our payroll software to prepare payroll, calculate withholding and print signature-ready payroll checks. A free demo of Payroll Mate payroll software can be downloaded  from the payroll software download page.

Below is a list of the new rates for 2010 , 2011 :

City Income Tax Rates 2010 , 2011:

Grandview Heights: new rate is 2.5 %. The old rate was 2.25 %. Effective on July-1-2010.
Lowellville: new rate is 2 %. The old rate was 1.5 %. Effective on Jan-1-2011.
Marysville City: new rate is 1.5%. The old rate was 1 %. Effective on July-1-2010.
Mayfield: new rate is 2 %. The old rate was 1.5 %. Effective on July-1-2010.
Miamisburg: new rate is 2.25% . The old rate was 1.75%. Effective on Jan-1-2011.
Mogadore: new rate is 2.25% . The old rate was 2 %. Effective on July-1-2010.
Oakwood Village: new rate is 2.5 % . The old rate was 2 %. Effective on July-1-2010.
Pataskala: new rate is 1 %. Effective on July-1-2010.
Worthington: new rate is 2.5 %. The old rate was 2 %. Effective on July-1-2010.

School district income tax rates 2010, 2011:
Bethel: new rate is 0.75%. Effective on Jan-1-2011.
Kenton: new rate is 1.5% . The old rate was 1 %. Effective on Jan-1-2011.
Legemont: new rate is 1.25 %. Effective on Jan-1-2011.
Northwest: new rate is 1 %. Effective on Jan-1-2011.

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The Illinois Small Business Job Creation Tax Credit is a one year credit that will help create up to 20,000 jobs. Our small business payroll software helps businesses calculate payroll withholding in Illinois including different types of exemptions and deductions. A free demo of the software can be downloaded from here.

This new law creates a $2,500 tax credit (that can be carried forward) on payroll withholding tax for employers with 50 or fewer total employees who hire new, full-time Illinois employees during the 12-month period beginning July 1, 2010. 

95% of Illinois businesses have fewer than 50 employees.

Calculation of the net increase in the number of Illinois employees is based on the employer’s number of Illinois employees as of June 30, 2010. 

The credit is available to qualifying employers for each new, full-time Illinois job created and sustained for at least one year. 

It will have a cap of $50 million on the total amount of credits issued.

To qualify, a job must pay at least $25,000 per year. 

Eligible companies will apply for the credit online and ultimately will be issued a tax credit certificate.

• Application for the credit may be made as soon as a new, full-time Illinois employee is hired after July 1 and begins providing services. 

• Carry forward credits will be issued for each new position, up to a maximum cumulative amount of $50 million, on a first-come-first-served basis determined by date of application. 

• The credits will be issued beginning July 1, 2011.

• The determination of whether an employer has 50 or fewer employees on June 30, 2010 will include all employees in every location, which includes both in Illinois and out of state employment totals.

• Employer subsidiaries created for purposes of benefiting from the credit will not qualify for the credit under aggregation rules; related businesses will be treated as one business for purposes of determining whether an employer has 50 or fewer employees.

• Eligibility for the credit does not require that a particular individual employee be retained for one year, only that a new, full-time Illinois job be created and sustained for one year.

• New small businesses hiring their first Illinois employee(s) may qualify for the credit.

• The credit may be claimed for an hourly employee working an average of at least 35 hours per week or for a full-time salaried employee, but not for a partner or an independent contractor.

• Tax credits granted will not change the recognition of withholding tax paid for either employer or employee.

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Our 1099 software includes full support for 2010 1099 e-filing in accordance with IRS publication 1220 Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935 and W-2G Electronically. To download a free demo, please visit the 1099 software download page. 

General Changes for Tax Year 2010 1099 E-Filing

(1) Under the Combined Federal/State Filing Program, the Form 6847 was obsoleted. IRS no longer requires this Form as part of the Combined Federal/State Filing Program. For approval to participate in the Combined Federal/State Filing Program test filing is still required.

(2) Change in contact name from IRS/ECC-MTB to IRS/IRB (Information Returns Branch), Information Reporting Program to Information Returns Branch and added Mail Stop 4300 to mailing address.

Programming Changes for Tax Year 2010 1099 E-Filing

(1) For all Forms, Payment Year, Field Positions 2–5, for the Transmitter “T” Record, Payer “A” Record and Payee “B” Record must be incremented to update the four-digit reporting year (2009 to 2010), unless reporting prior year data.

(2) Payer “A” Record moved the Combined Federal/State Indicator from field position 26 to field position 6.

(3) Payer “A” Record, expanded Type of Return field from a one position to a two position field. Previously the field position was 27, now it is field positions 26–27.

(4) New Form 1097-BTC, Bond Tax Credit.

In the Payer “A” Record added:
—field positions 26–27 Type of Return added new code BT,
—field positions 28–41 Amount Codes add 3 for ‘Stated Principal’, 4 for ‘March 15, 2010 Allowance Date Credit’, 5 for ‘June 15, 2010 Allowance Date Credit’, 6 for ‘September 15, 2010 Allowance Date Credit’, and 7 for ‘December 15, 2010 Allowance Date Credit’.

In the Payee “B” Record added:
—field position 547 for Issuer indicator, 1 indicates ‘Issuer of Bond or Its Agent Filing Initial 2010 Form 1097-BTC for this bond’, 2 indicates ‘An Entity that received a 2010 Form 1097-BTC for this Bond’
—field positions 548–555 for Bond Issue Date, format YYYYMMDD
—field positions 556–563 for Maturity Date, format YYYYMMDD
—field positions 564–576 for CUSIP Number
—field positions 608–610 Bond Code:

101 Qualified Forestry Conservation Bonds
102 New Clean Renewable Energy Bonds
103 Qualified Energy Conservation Bonds
104 Qualified Zone Academy Bonds
105 Qualified School Construction Bonds
106 Clean Renewable Energy Bonds
107 Midwestern Tax Credit Bonds
108 Other
109 Build America Bonds
—field positions 611–619 for Bond Issuer’s Identification Number
—field positions 620–659 for Bond Issuer’s Name

(5) Form 1098-C, Payee “B” Record changed the Goods and Services from field positions 731–748 to field positions 731–746 reducing the field length from 18 to 16 positions.

(6) Forms 1099 INT, Payee “B” Record new field added. Field title CUSIP Number in field positions 587–599.

(7) Form 1099 R, Payee “B” Record field positions 545–546, added new distribution codeWfor ‘Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements’, changed code 6 description to ‘Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts)’, and changed code E description to ‘Distributions under Employee Plans Compliance Resolution Systems (EPCRS)’. Distribution code W can be used with code 6.

(8) Form 3922, Payer “A” Record, field positions 28–41, add Amount Code 8, Exercise Price per Share Determined as if the Option was Exercised on the Date Option Granted.

(9) Form 5498, Payer “A” Record, field positions 28–41 Amount Codes, deleted Amount Code E, Other Contributions and deleted the corresponding Bankruptcy Code in field positions 560–561 of the Payee “B” Record.

Check out our 1099 electronic filing software and see how easy it’s to e-file 1099’s.

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Our Payroll Software helps businesses and accountants do Alabama Payroll including calculating the state withholding and preparing payroll forms such as 941, 940, W2 and W-3. To learn more about our payroll system, please visit www.realtaxtools.com .
The state of Alabama recently updated the “Withholding Tax Tables and Instructions for Employers and Withholding Agents” booklet. There have been no changes to the payroll withholding tables themselves. This new booklet is a quick-reference source providing answers to the most commonly asked Alabama withholding questions.

This booklet contains tax tables and general instructions for computing, withholding, and remitting Alabama withholding tax. Because many monthly, quarterly and annual withholding tax returns are now being filed electronically, coupons are no longer automatically mailed to all withholding agents and employers. Coupons are no longer produced for those required to file electronically or for those who have voluntarily elected to file electronically. Employers who register for a withholding tax account number using our on-line application have an option to receive coupons. Those electing to file electronically will be sent instructions. Accountants and tax filing services may register as bulk filers through the Department’s Web site.

Employers or other withholding agents can register with the Department by completing a withholding tax application. The application (Combined Registration/ Application) can be completed and submitted on-line. The on-line withholding tax application can also be downloaded, completed and mailed to the address provided on the application. Our IL DOR address is www.revenue.alabama.gov .

If you are looking for affordable and super easy payroll tax software, please visit our payroll software page to download your free demo today.

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