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December 2010

Get Ready for Income Taxes

If you get it in the mail and it says “Important Tax Papers Enclosed” then it is best that we see and not just go by your notes. The reason is that the IRS got a copy of this info too and their computers will look at your return and the info they received and try to make them match. So to avoid letters from the IRS it’s best if we see these documents and get these numbers exactly right. So grab a big envelope and save them to send in with your other tax info!

California Withholding Changes

California State Disability (SDI) Rate is increased this year to – 1.2%.

Changes to Federal Payroll Rates

The amount of the Social Security deduction has changed for 2011 for the first time in many years. The employee portion that is withheld for Social Security has been reduced by 2% so it is now 4.20% The employee portion of Medicare remains the same at 1.45% That means that the total deduction for the employee FICA – which combines both the Social Security and Medicare deduction is now 5.65% not 7.65% Click here To download the 2011 IRS Publication 15 .

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