Vision Payroll

According to the California Employment Development Department (EDD), employers in the counties of Los Angeles, Ventura, and San Bernardino directly affected by the damage resulting from the fire may request up to a 60-day extension of time from EDD to file their State payroll reports and/or deposit State payroll taxes without penalty or interest. The written request for extension must be received within 60 days from the original delinquent date of the payment or return to file/pay. Contact Vision Payroll if you’ve been affected and need to file the extension request.

This week’s question comes from Roseanne, a payroll manager. When will the 2009 Social Security wage base be announced? Answer: The US Department of Labor has just announced that the 2009 Social Security Wage Base will increase by $4,800 to $106,800. Since wages are taxed at a rate of 6.2%, the maximum tax to be paid by each employee will therefore increase to $6,621.60 or an increase of $297.60. The increase impacts about 7% of workers who pay Social Security Tax. Vision Payroll will automatically update its system for 2009 to reflect the higher wage base.

According to the US Department of Labor, in the week ending October 11, the advance figure for seasonally adjusted initial claims was 461,000, a decrease of 16,000 from the previous week’s revised figure of 477,000. It is estimated that the effects of Hurricane Ike in Texas added approximately 12,000 claims to the total. The 4-week moving average was 483,250, an increase of 750 from the previous week’s unrevised average of 482,500.

Today and on the fifteenth of every month, Vision Payroll posts a new HRCast, a recording provided by our team of HR Pros. These recordings help you better manage your business and your most important asset, your employees. In prior months, topics covered included hiring tips, the difference between exempt and non-exempt employees, the independent contractor vs. the employee, and relationships in the workplace. These recordings run between five and ten minutes and provide a great overview of the topic. Search our HR site for more information on the topic or pose a question to our team of experts and receive your answer within one business day. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

The Montana Department of Labor and Industry announced recently that pursuant to Montana Code Annotated 39-3-409, the minimum wage for the state of Montana will increase to $6.90 per hour. The law requires an adjustment to the minimum wage that must be calculated no later than September 30 of each year. The adjustment is tied to the US City Average Consumer Price Index (CPI) for All Urban Consumers for All Items for the 12 months ending in August. The 5.4% increase in the CPI will result in an increase of $0.35 for 2009. Contact Vision Payroll if you have any questions on the Montana minimum wage increase or visit our Minimum Wage Chart.

Todd Smith, Director of the Missouri Department of Labor and Industrial Relations (DOLIR), recently announced that the Missouri minimum wage will increase $0.40 effective January 1, 2009. Under Section 290.502.2, RSMo (Missouri Revised Statutes), the DOLIR director must calculate an adjustment to the minimum wage based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July to July. Changes are rounded to the nearest 5¢ and take effect the following January. This year’s change will increase the minimum wage from $6.65 to $7.05 per hour for covered workers. Contact Vision Payroll if you have any questions on the Missouri minimum wage increase or visit our Minimum Wage Chart.

The Division of Labor of the Colorado Department of Labor and Employment recently promulgated Colorado Minimum Wage Order 25 which increases, effective January 1, 2009, the minimum wage for the state of Colorado from $7.02 to $7.28 per hour. Pursuant to the inflation adjusted requirement of Section 15, Article XVIII of the Colorado Constitution, the minimum wage must be adjusted each year effective January 1. Contact Vision Payroll if you have any questions on the Colorado minimum wage increase or visit our Minimum Wage Chart.

The Division of Labor & Worker Safety of the Ohio Department of Commerce announced recently that, effective January 1, 2009, the minimum wage for the state of Ohio will increase to $7.30 per hour for non-tipped employees and $3.50 for tipped employees. The minimum wage will apply to employers who gross more than $267,000 per year. As a result of a constitutional amendment that passed in 2006 an adjustment to the minimum wage must be applied on January 1 of each year. The adjustment is tied to the Consumer Price Index (CPI) for urban wage earners and clerical workers for the 12-month period prior to September. The 4.6% increase in the CPI will result in an increase of $0.30 for 2009. Contact Vision Payroll if you have any questions on the Ohio minimum wage increase or visit our Minimum Wage Chart.

This week’s question comes from Joe, a payroll administrator. I’m always busy at year-end. Is there anything I can do now to make 2008 year-end easier? Answer: There are several things that can be done to ease the year-end crunch.

• Review each employee’s basic information including name, address, and social security number and update for changes or mistakes.
• Be sure contractor W-9 forms are on file for preparation of any Forms 1099.
• Review company paid time off policy and remind employees of any use it or lose it feature.
• Accumulate data for special pay transactions including items that must be added for W-2 purposes. Examples include fringe benefits, including personal use of a company car, value of group-term life insurance in excess of $50,000, and medical premiums for certain S corporation shareholders. These items should be included with a live payroll run in order to collect the employee’s share of any taxes due.
• Confirm with your pension plan administrator which employees should have pension indicator box checked on Form W-2.
• Determine which employees will require an additional Form W-2 to report third-party sick pay.
• Plan and schedule any additional pay runs, including holiday and performance bonuses and directors pay.

Vision Payroll can work with you to prepare now for a smooth year-end. Contact us now with any questions or concerns.

According to the US Department of Labor, in the week ending October 4, the advance figure for seasonally adjusted initial claims was 478,000, a decrease of 20,000 from the previous week’s revised figure of 498,000. It is estimated that the effects of Hurricane Gustav in Louisiana and the effects of Hurricane Ike in Texas added approximately 17,000 claims to the total. The 4-week moving average was 482,500, an increase of 8,250 from the previous week’s revised average of 474,250.