Vision Payroll

In IR-2008-118, the Internal Revenue Service (IRS) announced increases to the limits on SIMPLE plan contributions for 2009. The limitation for SIMPLE plans is codified in §408(p)(2)(E) of the Internal Revenue Code of 1986 (IRC). This section also requires annual adjustments as necessary to keep pace with inflation in a manner similar to that required by IRC §415 for retirement plans. For 2009, the SIMPLE plan regular limitation will increase from $10,500 for 2008 to $11,500 for 2009. The age 50 and over catch-up contribution remains at $2,500 for individuals who plan to reach age 50 before the end of 2009. Contact Vision Payroll if you have questions on changes to the SIMPLE plan contribution limits.

The Internal Revenue Service announced recently that certain taxpayers in Louisiana and Texas will have until January 5, 2009 to file most returns and pay most taxes. Additionally, failure to deposit penalties for employment and excise deposits due on or after September 11 and before September 26, 2008, will be waived as long as the deposits are made on or before September 26, 2008. Louisiana taxpayers who reside in or have a business in the parishes of Acadia, Beauregard, Calcasieu, Cameron, Iberia, Jefferson, Jefferson Davis, Lafourche, Plaquemines, Sabine, St. Mary, Terrebonne, Vermilion, and Vernon and Texas taxpayers who reside in or have a business in the counties of Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Grimes, Hardin, Harris, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler, Walker, Waller, and Washington will qualify for relief. Contact Vision Payroll if you have been affected by Hurricane Ike and need details on the postponements.