Compass Payroll Services - News You Can Use

Hiring Incentives to Restore Employment (HIRE) Act

The following links are posted on IRS.gov and contain a lot of good information.

New Incentives for Hiring - New tax benefits aid employers who hire and retain unemployed workers.

Questions? We Have Answers - Our Q&As will help you understand the details of the HIRE tax breaks.

 

Social Security Wage Base Remains at $106,800 in 2010
The Social Security Administration (SSA) announced on Thursday, October 15, 2009, that the 2010 social security wage base will be $106,800, unchanged from 2009. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore all covered wages are still subject to the 1.45% tax.

IRS Decreases Business Mileage Rate to 50 Cents for 2010
The IRS has announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2010, will be 50 cents per mile, down from the 55 cents per mile rate in effect during 2009 [Rev. Proc. 2009-54, released 12-3-09; www.irs.gov/pub/irs-drop/rp-09-54.pdf].

In addition, the 2010 standard rate for miles driven for medical or moving purposes will decrease to 16.5 cents per mile, down from the 24 cents per mile rate in effect during 2009.

Finally, the standard mileage rate for operating a passenger car for charitable purposes is set by law and will stay at 14 cents per mile in 2010.

What is the minimum wage?
The federal minimum wage provisions for covered, nonexempt employees are contained in the Fair Labor Standards Act (FLSA). The Fair Minimum Wage Act of 2007 included phased increases to the federal minimum wage.

• For work performed from July 24, 2008 to July 23, 2009, the federal minimum wage is $6.55
• For work performed on or after July 24, 2009, the federal minimum wage is $7.25

Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two wages.

Ohio 2009 Minimum Wage
Effective January 1, 2009 Ohio’s minimum wage will increase as follows:
$7.30 per hour/ $3.65 per hour for tipped employees (plus tips)

The Ohio minimum wage is $6.55 per hour for: Those employees whose employers gross $267,000 or less/14 & 15 year olds

On July 24, 2009 the Ohio minimum wage increases to $7.25 per hour for: Those employees whose employers gross $267,000 or less/14 & 15 year olds

Source: U.S. Department of Labor