by Jean Miller | Accounting News, Uncategorized
Change in the State Unemployment Tax Rates and Wage Base (Indiana Clients):
After a rather confusing first quarter 2010, the Indiana General Assembly has changed the wage base for state unemployment taxes and adjusted the rates accordingly. The wage base has been increased to $9,500 and the rates have been adjusted to range from 0.7% to 9.5%. Premium rate notices will begin arriving in your mailboxes this month. Please forward this information to your payroll service (if you have one) and to us (if we prepare your payroll tax returns). If you are using QuickBooks to prepare your payroll, on January 1st you will need to change the quarterly SUTA rates. The payroll updates will update the wage base so that the tax due will calculate correctly.Â
Note: It is very important to notify your payroll service regarding your new SUTA rates. With the change in the wage base there is the potential for a significant error in the calculation of the tax due (in most cases the incorrect rate will calculate your tax due as higher than it should be).
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by Jean Miller | Accounting News, Uncategorized
Change in the Federal Unemployment Tax:Â
By now many of you have received notification from the Indiana Department of Workforce Development regarding the reduction in the federal tax credit and the impact it will have on your Federal Unemployment taxes for 2010 (filed in January 2011). As the notice states, because Indiana has not repaid the trust fund advance within the required two years, the annual credit employers receive for filing on time is reduced. The net effect to you as a business owner is an increase in Federal Unemployment tax of 0.3%, or instead of the maximum FUTA tax being $56 for an employee earning $7,000 or more, it is now $77 (an $11 increase). If we prepare your year end payroll tax returns and forms we will make the appropriate adjustments to the tax due and advise you accordingly.
Note to QuickBooks users: it is imperative that you load the payroll tax updates so that the correct tax rates and tables are used to calculate the payroll for the fourth quarter. Please call our office if you have any questions about how to receive these updates.
by Jean Miller | Accounting News, Uncategorized
The Biannual business entity reports for your businesses are due every two years in the anniversary month of your formation. Failure to file these reports causes your business to be put on inactive status and will generate an Administrative Dissolution. Reversing this Administrative Dissolution is possible, but does require additional paperwork and documentation. Â
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If you have not filed your report within the last two years, please go to http://www.in.gov/ai/appfiles/sos-berf/ and file. Filing online is fast, efficient and costs less than filing on paper. The business entity report does not contain any financial information, but lists the names and addresses of the company and the officers. The online filing fee is $22.44 (they accept credit cards) and the filing fee for paper returns is $30. If wish to have us file for you, please notify us and we will be happy to assist.
