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Employers Subject to Higher SUTA Wage Bases in 2012 Across the U.S. a large number of states are dealing with solvency issues in their unemployment insurance trust fund. At least 20 state jurisdictions have increased taxable wage base limits in 2012. Nevada is the only state that lowered the taxable limit and Rhode Island has …

If you have followed the news over the past couple months, then you are likely aware of the debate in Washington D.C. over the extension of the payroll tax holiday. In 2011, the payroll tax holiday was passed which reduced the employee portion of the social security payroll tax from 6.2% to 4.2%. On Friday …

Despite President Obama’s proposal to make the FUTA surtax permanent, Congress did not take action to extend the 0.2 percent surtax past its scheduled expiration on June 30. Mid-year changes to payroll taxes can complicate payroll processing and reporting requirements, particularly when changes involve federal taxes. About the FUTA The Federal Unemployment Tax Act (FUTA) …

The IRS’s attempt to close the “tax gap”, the difference between taxes owed and taxes actually paid to the IRS, is officially underway. The Employment Tax National Research Project is auditing 6,000 U.S. employers through 2012 to try and claim some of the $60 billion of uncollected employment taxes the IRS estimates make up the …

President Obama signed bill H.R. 4851 to extending the COBRA subsidy program to May 31 2010 and unemployment benefits to June 2, 2010. The 65% of the premium paid by the employer is reimbursed through a credit against the employer’s employment tax liabilities. The credit is taken on Form 941 or Form 944 and is …