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2010 Federal Tax Withholding Changes As a result of the new IRS tax tables, employees will see an increase in their federal tax withholding in 2010.  The increase is minimal in most cases, however lower wage earners that are filing as married will be impacted the most.  The table below is an illustration of the …

On December 21 President Obama signed a measure extending the COBRA subsidy program, which pays 65 percent of health care premiums for involuntarily terminated workers. The measure, called The Fiscal Year 2010 Defense Appropriations Act, includes amendments to the federal American Recovery and Reinvestment Act of 2009 that originally provided the COBRA subsidy. The measure increases …

As a result of the rise in unemployment claims this past year, several states have depleted their unemployment fund.  Those states are now increasing their unemployment wage base to replenish their funds. What is unemployment tax? Unemployment tax is a payroll tax that employers pay on employee wages.  It is not a tax withheld from …

About COBRA In general, COBRA provides certain former employees the right to a temporary continuation of health coverage at group rates.  As a result of the American Recovery and Reinvestment Act of 2009 (ARRA), employers are required to pay 65% of the former employee’s COBRA premium directly to insurers, provided that the employee pays the …

Social Security Wage Base for 2010 For the first time since 1975, the Social Security Administration will not be increasing the OASDI (Old-Age, Survivors, and Disability Insurance) wage base, also referred to as Social Security wage base.  For prior years, the annual wage base increase has been the result of an automatic cost-of-living adjustment (COLA), …