Every year, we monitor thousands of changes in local, state, and federal laws that affect our more than 572,000 U.S. business clients. No matter the outcome of the stimulus plan and other economic proposals, you can be assured that we will continue to take care of the administrative details- so you can focus on running your business.
Lately we have been monitoring several provisions of the American Recovery and Reinvestment Act of 2009, and potential economic legislation, so we can continue to be a resource to our partners in the accounting community, advise our clients, manage their administrative details, and help them comply with changing government regulations.
The following provisions of the economic stimulus plan signed by President Obama on February 17 may have a significant impact on the businesses you work with.
Lately we have been monitoring several provisions of the American Recovery and Reinvestment Act of 2009, and potential economic legislation, so we can continue to be a resource to our partners in the accounting community, advise our clients, manage their administrative details, and help them comply with changing government regulations.
The following provisions of the economic stimulus plan signed by President Obama on February 17 may have a significant impact on the businesses you work with.
Economic Stimulus
California Business Resource
The Economic Stimulus Plan and Your Business
"Making Work Pay" Provision
Gives workers a rebate/ credit for the 2009 and 2010 tax years of the lesser of $400 for individuals and $800 for couples, or 6.2% of earned income. These amounts should taper off for individuals earning over $75,000 or couples earning over $150,000. The IRS indicates that the credit will be achieved via an early to mid year change to withholding tax tables.
Premium Assistance for COBRA Recipients
Allows Cobra beneficiaries to pay only 35 percent of their premiums, while their employers pay the remaining 65 percent. Employers are reimbursed for their portion of the premiums through a credit on payroll taxes.
Economic Proposals Under Consideration:
* Federal Minimum Wage Increase- to $9.50 by 2011.
* Retirement Account Withdrawals- would support withdrawals from retirement account of 15% up to $10,000 without penalties. Withdrawals would remain subject to withholding taxes. As proposed, this provision would apply to withdrawals in 2008 (retroactively) and 2009.
For more information, please contact:
Loraine McDonald
Paychex
Senior Sales Consultant
Cell (858) 336-3647
Fax (800) 856-4907
lmcdonald@paychex.com
Gives workers a rebate/ credit for the 2009 and 2010 tax years of the lesser of $400 for individuals and $800 for couples, or 6.2% of earned income. These amounts should taper off for individuals earning over $75,000 or couples earning over $150,000. The IRS indicates that the credit will be achieved via an early to mid year change to withholding tax tables.
Premium Assistance for COBRA Recipients
Allows Cobra beneficiaries to pay only 35 percent of their premiums, while their employers pay the remaining 65 percent. Employers are reimbursed for their portion of the premiums through a credit on payroll taxes.
Economic Proposals Under Consideration:
* Federal Minimum Wage Increase- to $9.50 by 2011.
* Retirement Account Withdrawals- would support withdrawals from retirement account of 15% up to $10,000 without penalties. Withdrawals would remain subject to withholding taxes. As proposed, this provision would apply to withdrawals in 2008 (retroactively) and 2009.
For more information, please contact:
Loraine McDonald
Paychex
Senior Sales Consultant
Cell (858) 336-3647
Fax (800) 856-4907
lmcdonald@paychex.com
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General Business Information