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2008 PAYROLL RATES FICA 6.2 % of first $102,000 in salary (the maximum payment is $6,324.00 per employee) plus 1.45% of all salary (there is no maximum payment). SELF EMPLOYMENT TAX 15.3% of the first $102,000 of net income plus 2.9% of all additional net income. SDI 0.8% of first $86,698 in salary. The maximum payment is $693.58 per employee. CALIFORNIA SUI LIMIT The maximum wages subject to SUI is $7,000 per employee. The SUI rate is unique to each employer. CALIFORNIA ETT TRAINING TAX 0.1% of the first $7,000 in wages. The maximum amount is $7.00 per employee. PAYCHECK INFORMATION
In the State of California, any employer who fails to furnish written wage and withholding information to employees is subject to a fine of $1000 and up to one year in jail.
If you are tired of preparing your own payroll checks, paying penalties and interest to the government, or if you are planning on saving taxes by hiring your spouse or children, please give us a call. Our payroll services start as low as $55 a month. WAGE & SALES TAX INFORMATION 1. Minimum wage is $8.00 per hour effective January 1, 2008. 2. The State of California requires all employers to file a form DE-5423 for any independent contractors whom you will pay more than $600.00 for the year. Basically, this would apply for anyone whom you file a 1099-Misc. at the end of the year. The DE-542 is similar to the DE-34 that is used to report new employees. Effective January 2, 2001 you are required to submit a DE-542 within twenty (20) days of EITHER making payments totaling $600.00 or more OR entering into a contract for $600.00 or more with an independent contractor, whichever is earlier. Failure to submit the report in a timely basis may result in a penalty of twenty-four (24) dollars each occurrence.
MILEAGE REIMBURSEMENT 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.
Plan Ahead for Your Appointment!
Are you ready? Despite the fervent hope, prayers and wishes of millions of Americans for the contrary, tax time is once again upon us. If you’re like most taxpayers, you find yourself with an ominous stack of “homework.” Unfortunately, the job of pulling together the records for your tax appointment is never easy, but the effort will pay off when it comes to the extra taxes you save! When you arrive at your appointment fully prepared, we’ll have more time to: • Consider every possible legal deduction.
• Better evaluate your options for reporting income and deductions to choose those best suited to your situation.
• Explore current law changes that affect your tax return.
• Discuss tax-planning alternatives that could reduce your future tax liability.
• Talk about ways to start planning your financial future.
We want the chance to explore the tax savings of every tax deduction available.
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