Director Gary W. Child of the Wyoming Department of Employment has announced an increase in the taxable wage base for 2010. The wage base will increase from $21,500 for 2009 to $22,800 for 2010. Contact Vision Payroll if you have any questions on Wyoming unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
Administrator Roy Mulvaney of the Montana Department of Labor and Industry has announced a 4% increase in the taxable wage base for 2010. The wage base will increase from $25,100 for 2009 to $26,000 for 2010. Contact Vision Payroll if you have any questions on Montana unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
Secretary Ken F. Ortiz of the New Mexico Department of Workforce Solutions has announced a decrease in the taxable wage base for 2010. The wage base will decrease from $20,900 for 2009 to $20,800 for 2010. Contact Vision Payroll if you have any questions on New Mexico unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
Director Lawrence G. Rebman of the Missouri Department of Labor and Industrial Relations has announced a increase in the taxable wage base for 2010. The wage base will increase from $12,500 for 2009 to $13,000 for 2010. Contact Vision Payroll if you have any questions on Missouri unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
Effective February 26, 2010, Iowa Workforce Development will no longer accept magnetic media (CDs or diskettes) for filing unemployment insurance data. Any magnetic media submitted after February 26, 2010 will not be processed. The options for employers required to file quarterly reports in 2010 are the following:
Contact Vision Payroll if you have any questions on the new filing requirements for Iowa unemployment insurance quarterly data.
According to information provided by the Iowa Department of Revenue, the withholding tables for Iowa income tax will not change for 2010. The current tables, used for 2009 withholding, became effective April 1, 2006. Contact Vision Payroll if you have any questions on Iowa withholding.
Iowa Workforce Development has announced that the 2010 unemployment rates will be based on Table 4; 2009 rates are based on Table 6. This move to higher rates is required to maintain the solvency of the Trust Fund used to provide unemployment benefits.
According to Director Elisabeth Buck, “Iowa Workforce Development is committed to maintaining the solvency of the Trust Fund while minimizing the effects felt by Iowa employers. The Department is continually working with Iowans receiving unemployment benefits to increase their skill sets and reduce barriers individuals may have for returning to work.”
In addition, the taxable wage base for 2010 has been announced. The wage base will increase to $24,500, up from $23,700 for 2009. Consequently, many employers will see contributions to the fund increase based on both the higher rate and the higher wage base.
Contact Vision Payroll with any questions on the Iowa unemployment insurance rates or wage base.
This week’s question comes from Jason, an HR director. We reimburse employees using the per diem rates established by the General Services Administration. What are the 2010 maximum per diem rates? Answer: The GSA updated the maximum per diem rates for travel after September 30, 2009 and before October 1, 2010. For destinations or counties not specifically listed, the lodging per diem is $70 and the meals and incidental expenses per diem is $46. The rates for 2009 were $70 and $39, respectively. Certain destinations or counties are listed with higher per diem rates for part or all the fiscal year. Contact Vision Payroll if you have any questions on maximum per diem rates.
This week’s question comes from Joel, an HR director. We just implemented a Health Savings Account plan at our company. We know the amounts employees can contribute for 2009. What are the 2010 Health Savings Account inflation adjustments? Answer: the Internal Revenue Service recently released Rev. Proc. 2009-29 which contained the 2010 inflation adjusted amounts for Health Savings Accounts or HSAs.
The annual limitation on deductions will increase from $3,000 in 2009 to $3,050 in 2010 for those with self-only coverage. Those with family coverage will have the deduction limitation increase from $5,950 to $6,150.
The definition of a high deductible health plan will change from one with a minimum deductible of $1,150 in 2009 to $1,200 in 2010 for self-only coverage and from $2,300 to $2,400 for family coverage.
The annual out-of-pocket limitation for 2010 will also increase from $5,800 in 2009 to $5,950 for those with self-only coverage; the out-of-pocket limitation for family coverage will increase from $11,600 to $11,900.
Contact Vision Payroll if you have any questions on Rev. Proc. 2009-29 and the changes to HSAs for 2010.
In IR-2008-118, the Internal Revenue Service (IRS) announced an increase for 2009 to the Highly Compensated Employee Limitation under §414(q)(1)(B) of the Internal Revenue Code of 1986. Non-discrimination testing in some types of retirement plans limits the deferral rate of “highly compensated employees” (HCEs) based upon the deferral rate (ADP) of the “non-highly compensated employees”. For 2009, an HCE is anyone who was a “5-percent owner” at any time during 2008 or 2009 or anyone who received in excess of $105,000 in compensation during 2008 and, if elected by the employer, is in the top twenty percent of employees based upon compensation. The HCE limit was $100,000 for 2007 and 2008 plan testing. Since the law includes a look-back provision, employees who earned more than $100,000 in 2007 are generally considered HCEs for 2008 plan year testing, employees who will earn more than $105,000 in 2008 are generally considered HCEs for 2009 plan year testing, and employees who will earn more than $110,000 in 2009 are generally considered HCEs for 2010 plan year testing. Contact Vision Payroll if you have questions on changes to the HCE definition for 2008 and 2009, visit Important Facts and Figures, or get updated information for 2009 and 2010.
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