WATCH FOR CHANGE IN FUTA PAYROLL TAX RATE
Wisan Smith Racker and Prescott
Because of a quirk in the law, your payroll tax costs may be going down by .2% of as June 30th. Since the 1970's, there has been a "temporary" surcharge of .2% on all FUTA wages. This surcharge is scheduled to expire this week resulting in the tax reduction.
The tax on FUTA wages is 6.2%, with a credit of 5.4% allowed by federal law if you pay your state unemployment tax on time. The net tax rate is .8% and applies to the first $7,000 of wages per employee. The net rate will be .6% if the "surcharge" expires.
This could all change if a proposal in the President's 2012 budget, which would make the .2% surcharge permanent, is adopted. The proposal would also increase the wage base from $7,000 to $15,000 per employee. These changes make payroll taxes all the more confusing and add to the complexity of employers paying 6.2% Social Security tax while employees are paying 4.2%.
UTAH LABOR COMMISSION ANNOUNCES ANNUAL WORKERS COMPENSATION EDUCATION CONFERENCE
Attached is a brochure and registration form for the Utah Labor Commission's 9th Annual Workers' Compensation Educational Conference at the Sheraton Hotel in Salt Lake City, September 29, 2011.
GROUP SUES TO STOP N.Y. CARBON-TRADING PROGRAM
Today in Manufacturing
Program sets a cap on greenhouse gas emissions from power plants and requires power generators to buy credits to cover their carbon emissions ... continue
BOEING LABOR DISPUTE BECOMES HEADACHE FOR OBAMA
Today in Manufacturing
NLRB says Boeing retaliated against its unionized workforce in Washington state by opening new production line for its 787 airplane in South Carolina ... continue
COLUMN: REALITY CHECK
Today in Manufacturing
It seems that in the name of protecting intellectual property, we have lowered our productivity and creative thinking ... continue
OBAMA WANTS CONGRESS TO EXTEND PAYROLL TAX CUT
Today in Manufacturing
President Barack Obama is calling on Congress to extend a payroll tax cut for one more year to boost the economy ... continue
REPUBLICANS, BUSINESS GROUPS SLAM PROPOSAL TO ELIMINATE LIFO.
The Hill
According to a piece in The Hill: "Top Republicans are slamming the administration's proposal to roll back an accounting method often employed by manufacturers in its push to find new revenues for a deficit-reduction package." The White House has said that eliminating the "last in, first out," or LIFO, accounting practice "would lead to both a simpler tax code and a more level playing field in the manufacturing sector, and that it could be part of a balanced package to reduce the deficit." However, "key GOP lawmakers like Sens. Jon Kyl of Arizona and Orrin Hatch of Utah disagree, saying Tuesday that the proposal was the latest misguided attempt by the administration to raise taxes on job creators."
The Hill notes that business groups including the National Association of Manufacturers have also been critical of the proposal.
PRESIDENT CALLS FOR MORE ENERGY TAXES…AGAIN
Larry Scholer – NAM Shopfloor Blog
President Obama renewed his call on Congress to raise taxes on oil and gas companies today during a press conference at the White House. The President didn’t break any new ground with regard to policy this morning, but his comments do provide another opportunity to make the point: Don’t make energy more expensive!
Manufacturers depend on affordable energy to make products Americans and consumers around the world depend on and use every day. Higher energy prices have a direct impact on every American–chances are some kind of fuel was used either to make or transport virtually everything we touch.
Now is the wrong time to raise energy taxes. It will hurt job creation and further burden manufacturers, which are already strained by rising raw material costs and costly regulations, to give two examples.
Wisan Smith Racker and Prescott
Because of a quirk in the law, your payroll tax costs may be going down by .2% of as June 30th. Since the 1970's, there has been a "temporary" surcharge of .2% on all FUTA wages. This surcharge is scheduled to expire this week resulting in the tax reduction.
The tax on FUTA wages is 6.2%, with a credit of 5.4% allowed by federal law if you pay your state unemployment tax on time. The net tax rate is .8% and applies to the first $7,000 of wages per employee. The net rate will be .6% if the "surcharge" expires.
This could all change if a proposal in the President's 2012 budget, which would make the .2% surcharge permanent, is adopted. The proposal would also increase the wage base from $7,000 to $15,000 per employee. These changes make payroll taxes all the more confusing and add to the complexity of employers paying 6.2% Social Security tax while employees are paying 4.2%.
UTAH LABOR COMMISSION ANNOUNCES ANNUAL WORKERS COMPENSATION EDUCATION CONFERENCE
Attached is a brochure and registration form for the Utah Labor Commission's 9th Annual Workers' Compensation Educational Conference at the Sheraton Hotel in Salt Lake City, September 29, 2011.
GROUP SUES TO STOP N.Y. CARBON-TRADING PROGRAM
Today in Manufacturing
Program sets a cap on greenhouse gas emissions from power plants and requires power generators to buy credits to cover their carbon emissions ... continue
BOEING LABOR DISPUTE BECOMES HEADACHE FOR OBAMA
Today in Manufacturing
NLRB says Boeing retaliated against its unionized workforce in Washington state by opening new production line for its 787 airplane in South Carolina ... continue
COLUMN: REALITY CHECK
Today in Manufacturing
It seems that in the name of protecting intellectual property, we have lowered our productivity and creative thinking ... continue
OBAMA WANTS CONGRESS TO EXTEND PAYROLL TAX CUT
Today in Manufacturing
President Barack Obama is calling on Congress to extend a payroll tax cut for one more year to boost the economy ... continue
REPUBLICANS, BUSINESS GROUPS SLAM PROPOSAL TO ELIMINATE LIFO.
The Hill
According to a piece in The Hill: "Top Republicans are slamming the administration's proposal to roll back an accounting method often employed by manufacturers in its push to find new revenues for a deficit-reduction package." The White House has said that eliminating the "last in, first out," or LIFO, accounting practice "would lead to both a simpler tax code and a more level playing field in the manufacturing sector, and that it could be part of a balanced package to reduce the deficit." However, "key GOP lawmakers like Sens. Jon Kyl of Arizona and Orrin Hatch of Utah disagree, saying Tuesday that the proposal was the latest misguided attempt by the administration to raise taxes on job creators."
The Hill notes that business groups including the National Association of Manufacturers have also been critical of the proposal.
PRESIDENT CALLS FOR MORE ENERGY TAXES…AGAIN
Larry Scholer – NAM Shopfloor Blog
President Obama renewed his call on Congress to raise taxes on oil and gas companies today during a press conference at the White House. The President didn’t break any new ground with regard to policy this morning, but his comments do provide another opportunity to make the point: Don’t make energy more expensive!
Manufacturers depend on affordable energy to make products Americans and consumers around the world depend on and use every day. Higher energy prices have a direct impact on every American–chances are some kind of fuel was used either to make or transport virtually everything we touch.
Now is the wrong time to raise energy taxes. It will hurt job creation and further burden manufacturers, which are already strained by rising raw material costs and costly regulations, to give two examples.
No comments:
Post a Comment