Below is a summary of the main Payroll Tax Changes for 2009.
Social Security and Medicare Tax for 2009
Do not withhold social security tax after an employee reaches $106,800 in social security wages. There is no limit on the amount of wages subject to Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $1,700 or more in cash. Social security and Medicare taxes apply to election workers who are paid $1,500 or more.
Social Security Maximum Taxable Earnings in 2009: $106,800
Employee Social Security Rate for 2009 : 6.2%
Employer Social Security Rate for 2009 : 6.2%
Self-Employment Social Security Rate for 2009 : 12.4%
Medicare Maximum Taxable Earnings in 2009: No limit
Employee Medicare Rate for 2009 : 1.45%
Employer Medicare Rate for 2009 : 1.45%
Self-Employment Medicare Rate for 2009 : 2.9%
Federal Unemployment Tax (FUTA) Maximum Taxable Wages in 2009: $7,000
Employee FUTA Rate for 2009 : 0.0%(this tax is paid by the employer)
Employer FUTA Rate for 2009 : 0.8%
Social Security Administration and magnetic media
Employers and authorized reporting agents requesting verification of names and social security numbers of between 51 and 250,000 employees can no longer use magnetic media to submit their requests to the Social Security Administration.
Alabama employer withholding tables stayed the same in 2009
Arizona employer withholding tables stayed the same in 2009
California released new withholding tables for 2009 (see 2009 PIT Withholding Schedules available from Employment Development Department )
New Connecticut withholding tables are effective January-1 2009 (see â€œState of Connecticut 2009 Withholding Tables (Effective January 1, 2009)â€ available from the Connecticut Department of Revenue Services)
DC released new withholding tax tables effective January, 1st 2009. The annual withholding allowance was increased to $1,750.
No changes for 2009.
New withholding tables became effective January 1, 2009. The 2009 withholding allowance became to $3,650.
No withholding changes for tax year 2009.
No changes for 2009.
No payroll withholding changes in 2009.
The Kentucky Department of Revenue released new withholding tables effective Jan,1, 2009. The Standard deduction amount was increased to $2,190 in 2009.
The Maine Revenue Services updated the withholding tables for tax year 2009.
New withholding tables are effective for wages paid beginning January 1, 2009 (supersede any formulas before January 1, 2009). Annual withholding allowance was increased to $3,650. Also see the â€œ2009 Minnesota Withholding Computer Formulaâ€.
No withholding changes for tax year 2009.
New Jersey Withholding
No withholding changes for 2009.
New Mexico Withholding
The New Mexico Taxation & Revenue Department released new tax tables effective January 1 2009. The withholding allowance was increased from $3,450 to $3,650.
North Carolina Withholding
There has been no changes for tax year 2009.
North Dakota Withholding
The withholding rate schedules were updated, effective for wages paid on or after January 1, 2009. It is important for employers to note that only the minimum and maximum dollar amounts for each income bracket have changed from 2008. The tax rate for each income bracket has not changed.
The Ohio Department of Taxation has released new employer withholding tables for payrolls ending on or after Jan. 1, 2009. The reductions in the rates take into consideration the changes to Ohio individual income tax rates enacted in House Bill 66. The new employer withholding tables are now posted on our Web site at tax.ohio.gov. The tables include the percentage method for calculating withholding as well as biweekly, weekly, monthly and semimonthly withholding schedules.
New withholding tables are effective as of January 1, 2009.
The withholding tables dated January 1, 2007 will remain in effect for 2009. The withholding formula can be adjusted with the following updates:
Personal exemption credit: $176
Federal tax subtraction: $5,850
Rhode Island Withholding
The Rhode Island employerâ€™s income tax withholding tables have been updated for 2009. The Annual withholding allowance was increased to $3,650 from $3,500 in tax year 2008.
New withholding tables are in effect for payrolls ending on or after Jan. 1, 2009. The annual withholding allowance was increased to $3,650.
Alaska UI (Unemployment Insurance)
Alaska Department of Labor and Work Force Development increased the wage limit for state UI to $32,700 in 2009.
California SDI (Disability Insurance)
The Employment Development Department increased the wage limit for state disability insurance (SDI) to $90,669 ( the rate was $86,698 in 2008).
The State disability insurance tax rate was also increased to 1.1% in 2009.
Hawaii State Disability Insurance
The Wage limit for SDI increased to $45,639.88 in 2009.
Idaho SUI and WDF
The new 2009 wage limit for State Unemployment Insurance and Workforce Development Fund is $33,200 (the limit was $32,200 in tax year 2008).
Illinois State Unemployment Insurance
The Wage limit for state unemployment insurance (UI) was increased $300 to become $12,300 in 2009.
Iowa State Unemployment Insurance (UI)
In tax year 2009, the wage limit for state unemployment insurance increased to $23,700. The same wage limit increase applies to the Administrative Surcharge and Reserve Fund.
Michigan Unemployment Insurance Solvency Tax
A Solvency Tax for employers becomes effective Jan. 1, 2009. "Negative balance" employers are subject to the tax. Negative balance contributing employers have paid less into the unemployment compensation trust fund than the Unemployment Insurance Agency has paid out in unemployment benefits to their laid off workers.
Minnesota State Unemployment Insurance - UI
The Department of Employment and Economic Development (DEED) increased the wage limit for State Unemployment Insurance and Workforce Enhancement Fee to $26,000 in 2009. The wage limit was $25,000 in tax year 2008.
Missouri State Unemployment Insurance - UI
The new wage limit for state unemployment insurance is $12,500 for 2009.
Montana State Unemployment Insurance - UI
The new wage limit for State Unemployment Insurance and Administration Fund Tax is $12,500 for 2009 ( the limit was $23,800 in 2008).
Nevada State Unemployment Insurance and Career Enhancement Program
In 2009, the Nevada Department of Employment, Training & Rehabilitation increased the wage limit for state unemployment insurance and Career Enhancement Program to $26,600. The wage limit in 2008 was $25,400.
New Jersey State Unemployment Insurance
Wage limit for State Unemployment Insurance , Health Care Subsidy ,Workforce Development Fund and State Disability Insurance increased to $28,900.
On May 2, 2008, Governor Corzine signed Assembly Bill No. 873 , Family Leave Insurance (FLI), into law. Family Leave Insurance is a program that provides up to six (6) weeks of benefits to covered individuals to care for designated family members incapable of self-care or to bond with a newborn or newly adopted child. The program will be administered by the New Jersey Department of Labor and Workforce Development, Division of Temporary Disability Insurance.
New Mexico State Unemployment Insurance
The wage limit for UI tax (state unemployment insurance) increased to $20,900 in tax year 2009.
North Carolina State Unemployment Insurance
The Employment Security Commission of North Carolina changed the wage limit for state unemployment insurance (UI) to $19,300 in 2009 (was $18,600 in 2008).
North Dakota State Unemployment Insurance
Job Service North Dakota administers the state unemployment insurance (SUTA, SUI, UI) program in North Dakota. In 2009, the wage limit for state unemployment insurance increased to $23,700 from $22,100 in the previous year.
Oklahoma State Unemployment Insurance
The Wage limit for state unemployment insurance (SUTA, SUI, UI) increased to $14,200.
State of Oregon: Unemployment Insurance (UI)
The Wage limit for state unemployment insurance (UI) increased to $31,300 in 2009.
Rhode Island UI and SDI
Effective January 1st 2009 the wage limit for state unemployment insurance (UI) and Job Development Fund has increased to $18,000. The Wage limit for SDI has increased to $56,000 and the SDI tax rate increased to 1.5% from 1.3% (in 2008).
South Dakota : Unemployment Insurance (UI)
For 2009, the South Dakota Department of Labor increased the wage limit for state unemployment insurance and Investment Fee to $9,500.
State of Utah: Unemployment Insurance (UI)
Effective January 1-2009, the wage limit for state unemployment insurance increased to $27,800.
Washington State Unemployment Insurance
Starting January 1 2009, The Employment Security Department of Washington State has increased the wage limit for state unemployment insurance (UI) and Employment Administration Fund to $35,700.
Wisconsin Unemployment Insurance
The new 2009 wage limit for state unemployment insurance is $12,000.
Wyoming State Unemployment Insurance
The State of Wyoming Department of Employment changed the wage limit for state unemployment insurance (UI) to $21,500 in 2009.
2009 Retirement Plan Contributions-Deferrals
Simple IRA Annual deferral limit increased to $11,500.
The Maximum amount of deferral for 401(k) plans became $16,500 (up to Age 50) and $22,000 (above Age 50).
2009 Standard Mileage Rates
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
Form 941 and Form 944 paid preparers
Paid preparers must sign Form 941 and Form 944. The paid preparerâ€™s section is no longer optional and is included in Part 5 of Form 941 and Form 944.
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