The New Hampshire Department of Employment Security has announced an increase in the taxable wage base for 2011. The wage base will increase from $10,000 for 2010 to $12,000 for 2011. The taxable wage base will also increase to $14,000 for 2012. Contact Vision Payroll if you have any questions on New Hampshire unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
The Washington Employment Security Department has announced an increase in the taxable wage base for 2011. The wage base will increase from $36,800 for 2010 to $37,300 for 2011. Contact Vision Payroll if you have any questions on the Washington unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.
The Internal Revenue Service (IRS) recently released Rev. Proc. 2010-22, which contained the 2011 inflation adjusted amounts for Health Savings Accounts or HSAs. Since the changes in the Consumer Price Index for the relevant period do not result in changes to the amounts in 2011, the amounts will stay the same as in 2010.
The annual limitation on deductions will remain at $3,050 in 2011 for those with self-only coverage. Those with family coverage will have the deduction limitation stay at $6,150.
The definition of a high deductible health plan will see no change from one with a minimum deductible of $1,200 in 2011 for self-only coverage and $2,400 for family coverage.
The annual out-of-pocket limitation for 2011 also will not increase from $5,950 for those with self-only coverage; the out-of-pocket limitation for family coverage remains at $11,900.
Contact Vision Payroll if you have any questions on Rev. Proc. 2010-22 and the amounts for HSAs in 2011.
South Dakota Governor Mike Rounds recently signed SB 186, which increases the taxable wage base from $10,000 in 2010, to $11,000 in 2011, $12,000 in 2012, $13,000 in 2013, $14,000 in 2014, and $15,000 in 2015. The surcharge was reduced from 1.5% to 1.0% in 2010 and to 0.75% in 2011. The maximum rate for 2010 was increased, however, from 8.5% to 9.5%. Contact Vision Payroll if you have any questions on the South Dakota unemployment tax law changes.
In IR-2009-094, the Internal Revenue Service (IRS) announced that for 2010 the Highly Compensated Employee Limitation under §414(q)(1)(B) of the Internal Revenue Code of 1986 will remain unchanged. 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 2010, an HCE is anyone who was a “5-percent owner” at any time during 2009 or 2010 or anyone who received in excess of $110,000 in compensation during 2009 and, if elected by the employer, is in the top twenty percent of employees based upon compensation. The HCE limit was $100,000 for 2008 plan testing and $105,000 for 2009 plan testing. Since the law includes a look-back provision, employees who earned more than $105,000 in 2008 are generally considered HCEs for 2009 plan year testing, employees who will earn more than $110,000 in 2009 are generally considered HCEs for 2010 plan year testing, and employees who will earn more than $110,000 in 2010 are generally considered HCEs for 2011 plan year testing. Contact Vision Payroll if you have questions on changes to the HCE definition for 2009 and 2010 or get further information at Important Facts and Figures.
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