2008 PAYROLL AND MILEAGE RATES
 

• The State Disability Insurance (SDI) withholding rate for 2008 has been announced as 0.8%.  The SDI taxable wage limit is $86,698.00 per employee for calendar year 2008.  The maximum to withhold is $693.58.
• The Social Security rate remains at 6.2%.  The taxable wage base increased to $102,000.00, with the maximum withholding set at $6,324.00.
• For Medicare, there is, once again, no limit on the taxable wage base (1.45% Medicare tax rate).
• For 401(k) calculations, the 2008 annual compensation limit is $230,000.00.  The 2008 limit on 401(k) contributions is $15,500.00.  The limit on 401(k) catch-up contributions for associates 50 years of age or older is $5,000.00.
• The limit on Simple IRA contributions for 2008 is $10,500.00, plus an additional $2,500.00 for those over 50.
• The limit on SEP IRA contributions for 2008 is the lesser of:

  • $46,000.00 or
  • 25% of your gross compensation
• Mileage Reimbursement for 2008 is 50.5 cents per mile for business miles driven, 19.0 cents per mile for moving or medical purposes and 14.0 cents per mile for charitable purposes.  The IRS has increased the mileage rates for the second half of 2008 in recognition of rising gas prices.  For July 1-December 31 the following rates are in effect: 58.5 cents per mile for business miles driven, 27.0 cents per mile for moving or medical purposes, and 14.0 cents per mile for charitable purposes.

HGi Financial Services
is a DBA of Holly Gunnette, EA, Inc.

9240 Limonite Avenue
Riverside, CA 92509
Riverside (951) 681-2784
Corona (951) 279-2322
Ontario (909) 989-7550
Fax (951) 681-2934

www.HGiFinancial.com

HGi Financial Services
9240 Limonite Ave.
Riverside, CA 92509-4941
Phone: (951) 681-2784
Fax: (951) 681-2934
www.HGiFinancial.com