Fourth Quarter 941 Form

The IRS deadline, to file form 941 (Employer’s Quarterly Federal Tax Return), is soon approaching. Quarter Four Form 941, which includes payroll periods from October, September and December, is due on January 31, 2010.
Form 941 is one of the many payroll forms that a business owner or an employer needs to prepare to be in compliance with government regulations. This payroll form is used by employers to report wages paid, tips employees have received, federal income tax withheld, both the employer and employee share of social security and Medicare taxes, the current quarter’s adjustments to social security and Medicare tax for fraction of cents, sick pay, tips group-term life insurance, advanced earned income tax credit (EIC) payments and credit for COBRA premium assistance payments. Credit for COBRA premium assistance payments is new to form 941 this quarter. This box has been added to accommodate COBRA premium benefits set forth in the economic stimulus package.

Using payroll software can save a business owner vast amounts of time and energy. An automated payroll solution can keep a business owner from possible mistakes during tedious calculations.

1099 Software Review

It is that time of year to be thinking about W2 and 1099 forms. Payroll Mate generates W2 forms for the user however if you also need to complete 1099 Misc forms for your vendors you may want to consider trying W2 Mate. W2 Mate supports 1099 Misc form printing. This software prints 1099 Misc copies B, C, state 1 and 2 to blank paper. W2 Mate supports a multitude of features/optional
features that you can add to the program if they fit your needs such as e-filing.


1099 Software Reviews can be a valuable tool when evaluating a product or you may want to test the product for yourself.

Download a free demo of 1099 software: W2 Mate download

Payroll Mate 2010

Real Business Solutions has released Payroll Mate 2010. A few new features in the program are state reporting for California and New York and a general ledger report. The general ledger report can be exported as a .qif file to be imported directly into Quicken or an excel file.

Remember besides preparing for next year's payroll you have to prepare for end of the year wage reporting. Employers are required to file W-2 Forms (Wage and Tax Statements) for each of their employees. Employees whom have had income, Social Security and Medicare taxes withheld from their pay. A W-3 form is required to be filed with the W-2 Forms. A W-3 Form is a transmittal summary. This form gives a total amount and number of the W-2 forms being filed. W-2/W-3 forms are filed with the Social Security Administration not the Internal Revenue Service. At this time the SSA requires any employer filing more than 250 W-2 Forms to file those forms electronically versus mailing paper forms. W2 forms are to be issued to employees no later than January 31st. Employee copies consist of copies B, C and 2.
Payroll Mate supports these forms.

Fourth quarter 941 forms are due January 31st encompassing payroll in October, November and December. Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax which is due February 1st. Payroll Mate supports both these federal tax forms.

To try this comprehensive payroll software for yourself download a free demo program from the following link:
Payroll Mate Demo

For more information about software and wage reporting supplies visit Real Business Solutions

Third Quarter 941 Form

The leaves are falling and we are preparing the third quarter 941 form. October 31st is the deadline for filing the
941 form. Payroll Mate makes generating this form a simple process. I have relieved myself of headaches and worry when it comes to filing payroll tax forms. This payroll software company is getting ready to release their 2010 payroll program.

To try this program for yourself:
Payroll software download

For more information about 941 form deadline:
941 form deadline

Video Tutorial- Payroll Software

Payroll Mate is a user friendly comprehensive payroll solution.

A new addition to the Payroll Mate website:
Payroll, W2 and 1099 Blog

Payroll Software Review

I saw this payroll software review. If you would like to read the review follow this link: payroll software review

For more information about the software or a complete feature and price list visit http://www.realtaxtools.com/

1099 Software Review

I saw this review for another product by the makers of Payroll Mate. For business owners that hire contractors this is a nice form printing software. To read the review: 1099 software review


For more information about the software or a complete feature and price list visit http://www.realtaxtools.com/

State Reporting- Payroll Software

Payroll Mate is a wonderful small to medium business payroll software. The makers of Payroll Mate are consistently updating their product and adding new features to benefit their customers. The newest feature available is state reporting. This feature is available to Illinois and Texas customers now. I have been assured more states will be added over the coming months.

Payroll Mate automatically calculates net pay, federal withholding tax, Social Security tax, Medicare, state and local payroll taxes. Payroll Mate also supports different types of payroll pay periods, prints checks, prepares payroll forms 941, 944, 940, W2 and W3. This payroll software also supports user-defined Income, Tax, and Deduction categories. The software supports up to 10 companies with 75 employees per company.

This payroll software has many options that can be added to the basic program. For a complete list of features, options and a free trial go to http://www.realtaxtools.com/index.html

New Jersey Tax Changes

New Jersey is another state in a list of states this year that is implementing tax increases mid year. These types of increases are one of many reasons I strongly recommend
automated payroll software.

New withholding rates for New Jersey taxpayers grossing more than $400,000 go into effect no later than October 1, 2009. The increase applies to the entire 2009 tax year. On January 1, 2010 the withholding rate will revert back to the prior rate.

A reminder to New Jersey employers f you have questions about your responsibilities as an employer, call the Division's Customer Service Center at 609-292-6400 or e-mail us at nj.taxation@treas.state.nj.us.


For a free trial of Payroll Mate follow this link: Payroll Mate

End of the Year Wage Reporting Preparation

The leaves are falling and though we may not want to believe it is already that time of year it is coming. The end of the year can be busy for many different reasons back to school, holidays and the looming tax season. Now is the time to start preparing for end of the year wage reporting. New business owners and seasoned veterans alike should get themselves organized for the end of the year. Preparation is key to the process running smoothly.

Beginning in October you can order your forms. You can order paper forms or form printing software. Form printing software allows the user to print W2 and W3
forms A beneficial feature to look for when purchasing software is laser substitute printing. Laser substitute printing government approved W2 copy A and W3 forms to blank paper. You may have a payroll software that generates W2 forms in this case you may already be equipped with the supplies you need.

In November you can expect Federal Tax Employment Forms, IRS Pub No. 393 and MMREF-1 (Magnetic Media Reporting and Electronic Filing) booklet. IRS Pub No. 393 should include a label which is to be attached to the W3 form. MMREF-1 booklet is for those employers whom electronically file their wage reports. The booklet contains specifications and edits for filing wage reports electronically. An electronic file must meet the government specifications. To generate an acceptable file employers must use a software program that generates that particular format. As stated earlier form printing software that also has this capability can be most beneficial.

By December you should have informed your employees to update their federal income tax withholding form (W-4), file a new Earned Income Credit Advance Payment Certificate (W-5) and report any name changes if necessary. If you have any employees which claimed an exemption from federal income tax withholding in the past year should file a new W-4 forms before February 18th. On February 19th you will have to start withholding at a single person rate with zero exemptions if those employees have not filed a new W-4 form.

These few steps will help you prepare to issue W2 form to your employees and file W2 A and W3 forms with SSA. You will also be organized going into the next year. If you do not use payroll software or are being priced out of your current software the beginning of a new tax year is a perfect time to invest in a new program.

Employer Wage Reporting

Employers have a responsibility to complete specific tasks related to wages paid to employees. Different types of businesses may require additional forms. It is always best to confirm your particular requirements with the IRS.

In January employers will be wrapping up the previous year’s reporting issues. Employers will file, with the IRS, the previous year’s 4th quarter 941 form. Determine if the tax withholding (federal, Social Security and/or Medicare) rates have changed from the previous year. If rates have changed you will need to make the necessary changes accordingly. The deadline for issuing W2 forms to employees also comes at the end of the month.

With the second month of the year come a few more tasks. This is the time to file W2 forms A and W3 with the SSA. Take the time to match form 941b totals W3 information.

April starts the second quarter of the tax year. File 1st quarter 941 form by the last day of April. The 2nd quarter 941 form is due the last day of July this includes payroll from April 1st through June 30th. In October third quarter 941 form is due including payroll periods July through September.

In November request Publication 393, MMREF instructions from SSA or IRS, if you have not received it. If employers plan on electronically filing W2 information they should update their password at SSA’s Business Services Online. Before the end of the year have your employees update their W-4 and W-5 forms for the next year. Whether electronic filing or paper filing submitters should test their form processes for the next year.

The beginning of the new tax year may be an excellent time to consider investing in payroll software. A complete payroll program can save users time and money at the same time avoiding costly calculation errors on payroll forms. For a free trial of Payroll Mate follow this link: payroll software download

To read this article in Spanish please follow this link:

Reporte De Salarios Para
Los Empleadores Con Software De Nomina

Avoiding W2 and W3 Errors

The fourth quarter of the tax year brings around the time to start preparing for end of the year wage reporting. Being organized and primed for this time of the year alleviates unnecessary last minute stress and mistakes. The IRS and SSA host a Small Business Seminar for both paper filers and/or electronic filers. Business owners may want to attend the seminar for valuable information on reporting wages and taxes and to receive the latest electronic filing instructions. If this is your first time generating W2 forms for your employees these seminars may be helpful. For information regarding the seminars contact the IRS (1-800-829-1040) or the Employer Service Liaison Officer (ESLO).

SSA asks employers to abide by a few guidelines when generating W2 and W3 forms. Keep your entries inside the boxes, use dark ink, do not erase or use white out on the form they also do not require dollar signs to be printed in the boxes.
W2 Box a – Employee’s nine digit Social Security number
W2 Box b – Employer’s nine digit identification number
W2 Box e – Employee’s name as shown on Social Security card and address
W2 Box 1 – Regular wages, tips and compensation
W2 Box 3 – Social Security wages, do not exceed maximum wages for the year
W2 Box 5 – Medicare wages, there is no limit on Medicare wages
W2 Box 7 – Tips paid

W3 Box b – This box must always be completed
W3 Box c – Show the total number of W2 forms included with this W3 form
W3 Boxes e, f, g – Position the label provided by the IRS in Publication No. 393 or enter EIN,employer’s name and employer’s address
W3 Box h – Show any other EIN number used during the tax year

This is a list of commonly used or required boxes on the W2 and W3 forms. Employers may be required to fill in additional boxes depending on their circumstances. Remember both the IRS and SSA websites can be very informative.

In October you can order W2 and W3 forms. You can order paper forms or W2 form printing software. By November the IRS will mail tax forms and IRS Publication No. 393 with a label identifying you as an employer. The label includes employer’s name, address and EIN, affix the label over Boxes e, f, g on the W3 form. For employers that file electronically you will receive the Magnetic Media Reporting and Electronic Filing booklet (MMREF-1). Before December your employees should update their W-4 and W-5 (Earned Income Credit Advance Payment Certificate) forms.

Before you actually file your wage reports you should balance your 941 form to your W3 form for the tax year. Annual amounts from payroll records should match the total amounts reported on all 941 forms for the year; the total amounts reported on all 941 forms for the tax year should match the sum of the same data fields shown in the W3 totals. To help you with balancing your records the SSA has prepared two worksheets. The first is a worksheet for the W3 form, the second is a worksheet for the fourth quarter 941 form. If you would like to use the worksheets to help you match your total amounts you can request a paper copy of the Employer’s Guide from SSA.

Strictly adhering to IRS and SSA guidelines and filing dates is the number one way to avoid errors and fines. Payroll software that automatically calculates Federal, Medicare, Social Security taxes and populates W2/3 and 941 forms lessens the tendency to make manual calculation errors.

Try a nice small business software:Payroll Mate

Payroll Forms Reporting Errors

Mistakes on payroll reporting forms can be time consuming and costly. With 941 time (always seems to be that time) and W2 season approaching fast now may be a good time to take a look at some of the frequent mistakes.

In general some of the most frequent reporting errors revolve around identifying the business and employee. The SSA and the IRS use the EIN and SSN for identification purposes. Your nine digit EIN should be correct and match on both your 941 and W3 forms. The social security number and employee’s name must match in the SSA’s file. Using titles such as Mr. and Mrs. in the name field may hinder the electronic identification of an individual. Another mistake can be made when reporting wages the year after an employee has passed away. These payments cannot be considered wages they must be reported on a 1099 Misc form in box 3.

Out of balance reports can occur due to several different circumstances. Omitting wages and/or taxes on a wage report or making a decimal error when reporting the wages and/or taxes. Always use a decimal point and report dollars and cents even if it is .00. Using the maximum Social Security wage amount for a prior year instead of the amount for the current tax year reported can be avoided by being an informed employer.

Specific W2/W3 form mistakes may be: not filing with SSA, using incorrect forms, not reporting the correct Medicare wages, or checking and/or not checking the proper boxes on the W2 form itself. W2 forms are to be filed with SSA not the IRS. Paper W2 copy A and W3 forms must be printed in OCR red drop-out ink on paper of the proper weight, margins and format. All paper forms must meet IRS regulations, red ink forms must be scannable and the forms must be for the correct reporting tax year. Remember, Medicare wages/tips do not have a limit that is subject to Medicare tax such as social security wages. Avoid checking the void box unless you do not want those wages reported. Another box to pay attention to is box 13 this includes the retirement plan box always check this box if your employee participates in a retirement plan.

Another important reporting form with frequent errors is the 941 Form. Some mistakes pertaining to these forms are again incorrect Medicare/Social Security wages and box 13, as pertaining to third party sick pay, also failing to file corrected forms and filing duplicate 941 forms. As with W2 forms separately report Medicare and Social Security wages but do not report amounts not covered by Social Security/Medicare wages such as employee earnings exceeding the yearly taxable amount for Social Security wages and payments to an independent contractor shown as wages.

If you need to adjust a prior year’s earnings on a 941 Form you must file W2c and W3c forms. Do not file duplicate 941 forms. This may happen if you include information from one month in two different quarterly filing reports. All these mistakes can be time consuming for the business owner to rectify and possibly incur monetary penalties.

Let’s try not to give anymore time and money than is required. Being vigilant and informed when inputting information and generating forms can help us avoid mistakes. Measure twice cut once as the saying goes, double check your forms the first time around to avoid a second time around.

Federal Minimum Wage Increases

On Friday July 24, 2009 the federal minimum wage increased to $7.25. This increase affects a number of states and all employees who are covered by the Fair Labor Standards Act (FSLA). The increase is the third and final in a succession of increases, over a three year period, mandated by a bill that was passed in 2007.

The most recent increase will improve the wages, for employees, in thirty states (Alabama, Alaska, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin and Wyoming) across the country. These states were either below the federal minimum wage or did not have a minimum wage. Under the Fair Labor Standards Act all employers, with very few exceptions, are required to the federal minimum wage to their non-exempt employees.

To be in compliance with the FLSA all employers subject to the requirements, must post a notice explaining the act. This notice must be posted in a prominent workplace so that employees can easily read the provisions. Posters and other compliance assistance materials concerning the minimum wage increase are available free of charge from the Labor Department's Wage and Hour Division.

In today’s economic climate full-time and part-time employees, whom the change affects, will welcome a boost in their paycheck. Employers may be nervous about the change if they are still manually calculating payroll. A simple solution, for small business owners in this situation, would be to invest in employee payroll software. A small upfront investment saves time, money and aggravation in the long run.

Try a free demo version of this small business payroll software: software download

Second Quarter 941 Deadline

The IRS deadline, to file the second quarter 941 form (Employer’s Quarterly Federal Tax Return) is nearing. To be compliant with government regulations this is one of many payroll forms business owners and employers need to prepare. Employers use this form to report wages paid, tips received by employees, federal income tax withheld, both the employee and employer portion of Social Security and Medicare taxes, the current quarter’s adjustments to Social Security and Medicare tax for fraction of cents, sick pay, tips, group-term life insurance, advanced earned income tax credit (EIC) payments and credit for COBRA premium assistance payments.

Those employers, who filed the first quarter 941 form, for 2009, may recall the credit for COBRA premium assistance payments line was a new addition at the time. This line was added to accommodate the COBRA premium benefits outlined in the American Recovery and Reinvestment Act of 2009.

Form 941 is due the last day of the month that follows the end of the quarter. Second quarter 941 Form is due on July 31, 2009 and includes payroll periods in April, May and June. Third quarter 941 Form is due October 31, 2009 and includes payroll periods in July, August and September. Fourth quarter 941 Form is due January 31, 2010 and includes payroll periods in October, November and December.

Preparing this can be cumbersome and time consuming. Comprehensive payroll software that includes payroll forms and reports can save business owners time and money. An automated payroll solution can save employers from possible mistakes during tedious calculations when completing payroll forms.

Many states have undergone tax table changes in 2009. Another dilemma averted by an automated payroll program. Receive automatic tax table updates and payroll forms with Payroll Mate. Payroll Mate is a user friendly, cost effective payroll solution.

A free demo version can be downloaded at payroll software download

2009 California Withholding Schedules Replaced

Recently a number of states have amended their tax withholding schedules.Using a payroll software can assist you in achieving a smooth transition when applying income tax changes.

As a result of the recent budget, the California Withholding Schedules for 2009 included in the 2009 California Employer’s Guide have been replaced.The schedules have been updated to accurately reflect the withholding amounts that should be withheld in each bracket of income at the time of the employee’s payroll.

Information regarding Method B- Exact calculation method can be found at http://www.edd.ca.gov/pdf_pub_ctr/09methb.pdf

For additional information about California Personal Income Tax www.ftb.ca.gov

This California payroll software has completed the updates and sent the new tax changes, by the internet, to their customers.

Download a free demo of this payroll software: Payroll Mate

Virginia Employers to Utilize Paycards

Virginia has authorized employers to make payment of wages and salaries by credit to a prepaid debit card or card account. This is effective for employees hired after January 1, 2010 and does not require affirmative written consent from the employee,if the employee fails to designate a financial institution to which payroll could be made by direct deposit and the employer arranges for the card or card account to be issued through a network system through which the employee will have the ability to make at least one free withdrawal or transfer per pay period.


Utilizing this Virginia payroll software with the capability to direct deposit payroll can save employers time and resources.

To download a free demo version of the software:Virginia payroll software download

New Jersey Mandates Electronic Filing

New Jersey is requiring all employers to electronically file their quarterly wage reporting information Form- WR30. This requirement is effective the first quarter of 2009.

Currently there are two options to file electronically. You choose the one that is best for your business.

Online SFTP Filing:

Using your PC and the PIN number indicated in your quarterly packet, update the employee information that is online.

You may complete the job in one or multiple sessions by saving the information.

When you are through updating the data, submit it. You will be provided confirmation in this secured site. File online now.

Amended returns may also be filed online.

SFTP Filing:

The Request for Authorization to Report WR-30 Electronically can be downloaded and faxed to the Division for processing. This document is usually processed within 24 hours.

A test file must be submitted and approved. Record specifications are available by clicking layout format.

For more information visit http://www.state.nj.us/njbgs/revtemplate.htm

For your payroll needs including software and federal forms visit Real Business Solutions.

Revised New York State and Yonkers Withholding Tax Computation Rules

Effective May 1, 2009 the New York State personal income tax rates and the Yonkers resident personal income surcharge tax rates have changed for certain taxpayers.

The following rules apply for computing the amount of New York State personal income tax and Yonkers resident income tax surcharge to be withheld:

• If you use Method I, Wage bracket tables (look-up tables), to compute withholding tax for your employees, you
can continue to use the New York State and Yonkers tables contained in Publication NYS-50-T (dated 1/06).

• If you use the dollar-to-dollar withholding tables instead of the exact calculation method, you can continue to
use the dollar-to-dollar withholding tables contained in Publication NYS-50-T (dated 1/06).

• If you elect or are required to use Method II, Exact Calculation Method, you must use the revised exact
calculation method(s) in this publication. Effective May 1, 2009, the New York State personal income tax and
Yonkers resident personal income tax surcharge Method II exact calculation methods on pages T-13, T-14,
T-14-A, T-57, T-58, and T-58-A in Publication NYS-50-T (dated 1/06) are no longer valid.

Supplemental withholding rates Effective May 1, 2009, if you pay supplemental wages (bonuses, commissions, overtime pay, sales awards, etc.), the following withholding rates apply (the New York City and Yonkers Nonresident rates are unchanged):

New York State 11.03% (.1103)
New York City 4.00% (.04)
Yonkers Resident 1.103% (.01103)
Yonkers Nonresident 0.50% (.0050)

Visit www.nystax.gov for more information on the changes.

A New York payroll software can make this transition very simple. Payroll Mate conveniently updates the tax tables for their customers. All mid year tax changes are sent to the users, free of charge, via the internet.


Payroll Mate is a comprehensive payroll software that fits the needs of accountants and small to medium size businesses.Payroll Mate automatically calculates net pay, federal withholding tax, Social Security tax, Medicare, state and local payroll taxes. Payroll Mate also supports different types of payroll pay periods, prints checks, prepares payroll forms 941, 944, 940, W2 and W3. This payroll software also supports user-defined Income, Tax, and Deduction categories making it very flexible and powerful.

Download a free demo version of the software and try it for yourself:Payroll Mate.

Changes to Arizona Income Tax Withholding

Effective May 1, 2009 Arizona withholding options have changed. The amounts, on or after May 1, 2009 through June 30, 2010, required to be withheld for Arizona withholding purposes will continue to be a percentage of the federal withholding.The new percentage options are available at http://www.revenue.state.az.us/Newsroom/Releases/SB-1185-Withholding-Q-A.pdf or by contacting the Arizona State Revenue Department . Amounts withheld on or after July 1, 2010, must be based on a table prescribed by the department. The department plans to have the new withholding tables available sometime in the late spring of 2010.

All current employees withholding options should be changed to the new applicable rate. Employers must notify their employees of the change and make available the revised Arizona form A-4 or A-4v if employees elect to chose a different rate.

A new employee must complete the revised 2009 Arizona Form A-4 within the first five days of employment to elect an Arizona withholding percentage. If the new employee does not complete the revised Arizona Form A-4, the employer must withhold Arizona income tax from the employee’s wages at the greater of the applicable minimum percentage (11.5% or 21.9%). A new employee who is an Arizona resident working outside of Arizona may elect voluntary Arizona income tax withholding for 2009 by completing the revised Arizona Form A-4V. The employer must withhold Arizona income tax from the employee’s compensation at the greater of either the percentage elected by the employee or the applicable minimum percentage (11.5% or 21.9%).

An Arizona payroll software can make this transition very simple. Payroll Mate conveniently updates the tax tables for their customers. Users will not need to manually input any percentage rates.


Payroll Mate is a comprehensive payroll software that fits the needs of accountants and small to medium size businesses.Payroll Mate automatically calculates net pay, federal withholding tax, Social Security tax, Medicare, state and local payroll taxes. Payroll Mate also supports different types of payroll pay periods, prints checks, prepares payroll forms 941, 944, 940, W2 and W3. This payroll software also supports user-defined Income, Tax, and Deduction categories making it very flexible and powerful.

Download a free demo version of the software and try it for yourself:Payroll Mate.

Direct Deposit Green Facts

Payroll software direct deposit is not only a convenience for the employee and employer but it also benefits the environment. This is one way businesses and their employees can help the environment in one easy step. Each pay day you can make a small contribution to the environment without thinking about it. These small contribution really add up over time.

One individual employee, paid with a paper, can save pounds of paper per year, avoid the release of multiple gallons of wastewater into the environment and avoid pounds of greenhouse gases being released into the atmosphere by switching to direct deposit. This is just one individual employee, the numbers for a business, that employs many people, rise exponentially they can save hundreds of pounds of paper, avoid the release of thousands of gallons of wastewater into the environment and hundreds of pounds of greenhouse gas into the atmosphere per year.

If those U.S. employees who have access to Direct Deposit but choose not use it, would opt to be paid by direct deposit, they would be:

Saving 11,082,971 pounds of paper
Avoiding the release of 105,709,380 gallons of waste water into the environment
Saving 4,105,889 gallons of gas
Avoiding the release of 31,581,675 pounds of greenhouse gas into the atmosphere.

This amount of greenhouse gas is equivalent to:
1,345,379 trees planted (and grown for 10 years)
13,756,978 square feet of forest preserved


Payroll Mate has added a direct deposit option to its simple to use comprehensive payroll software.

Download a free demo version of the software at
Payroll Mate download.

Hawaii Increases Income Tax

On May 8, 2009 a law passed to raise Hawaii's income tax. For taxable years beginning after December 31, 2008, Act 60 increases the income tax for the highest income bracket. Increases to the income brackets, by Act 60, will be repealed on December 31, 2015 and the rates, in effect prior to January 1, 2009, will automatically be reenacted.


For the majority of taxpayers, this means:

Taxpayers who file a joint return will pay:
9.00% on taxable income over $300,000, but not over $350,000;
10.00% on taxable income over $350,000, but not over $400,000; and
11.00% on taxable income over $400,000.

Heads of a household will pay:
9.00% on taxable income over $225,000, but not over $262,500;
10.00% on taxable income over $262,500, but not over $300,000; and
11.00% on taxable income over $300,000.


Unmarried individuals and married individuals who file separately will pay:
9.00% on taxable income over $150,000, but not over $175,000;
10.00% on taxable income over $175,000, but not over $200,000; and
11.00% on taxable income over $200,000.

For more specific information on the income tax change and/or the personal exemption, and standard deduction changes see http://www.state.hi.us/tax/announce/ann09-04.pdf

A payroll software makes state income tax changes simple. Payroll Mate automatically updates federal and state income tax withholding tables for their customers.



Download a free demo of Payroll Mate: http://www.realtaxtools.com/Downloads/PayrollMateSetup.exe

New York Enacts a New Payroll Tax

As of March 1, 2009 The Metropolitan Commuter Transportation Mobility Tax (MCTMT) has imposed a new tax on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD includes New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island) , Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.

This tax applies to employers required to withhold New York State income tax from employee's wages and whose payroll expense exceeds $2,500 in any calendar quarter and individuals with net earnings from self-employment allocated to the MCTD that exceed $10,000 for the tax year.

The rate of the tax is 0.34% on subject wages. Payment is due November 2, 2009 for the initial payment period: March 1, 2009 - September 30, 2009.

Specifics on the new tax can be found at http://www.tax.state.ny.us/sbc/mta.htm and/or http://www.tax.state.ny.us/pdf/memos/mta_mobility/m09_1mctmt.pdf

Customizable payroll software like Payroll Mate can be easily updated to implement the new Metropolitan Commuter Transportation Mobility Tax.

Download a free demo of Payroll Mate: http://www.realtaxtools.com/Downloads/PayrollMateSetup.exe

1st Quarter 941 Form

The time has already come to be thinking about the Employer's Quarterly Federal Tax Return (Form 941). Employer's are required to report wages paid, tips received by employees, federal income tax you have withheld, both the employer's and employee's Medicare and Social Security taxes withheld, your current quarter's adjustments to social security and Medicare taxes for fraction of cents, sick pay, tips, group-term life insurance, advanced earned income tax credit payments and credit for COBRA premium assitance payments. The COBRA premium assistance payments box is new to the 941 this quarter. The 941 form is due April 30, 2009 and includes payroll from Jan, February and March.

Employers whom are still calculating withholding taxes and generating their federal forms manually could save vast amounts of time and energy by using a Payroll Software. The IRS has changed the federal income tax tables due to the The American Recovery and Reinvestment Act of 2009 (The Stimulus Package) and ,as stated above, the 941 form. This may be the perfect time for employers to invest in a Payroll Program that could make this transition painless.

I am a small business owner and have been using this particular payroll software for almost a year now. I am continually impressed by this software and the support I get from the company.Payroll Mate has been completely updated (tax tables and 941 form) and frequently sends new updates, for the year, at no additional cost.

 Please try a free download of the payroll software 

W2/1099 Electronic Filing Deadline

The deadline for electronically filing W2 and 1099 forms is nearing. Per IRS and SSA regulations any person/s required to file 250 returns or more must file those returns electronically. Others with less than 250 returns may also choose to electronically file their returns.

For the tax year 2008 the deadline to E-File your W2 and 1099 Misc forms is March 31, 2009. In order to E-File a return you must have a software that generates an electronic file that meets IRS/SSA specifications.

W2 Mate offers a complete solution for importing, preparing, processing, printing and E-Filing 1099 and W2 forms. This W2/1099 form printing and reporting software supports an unlimited number of companies, employees, recipients and forms.

You can download a free demo version of the software at http://www.realtaxtools.com/download.html

Form 941 Changes

The federal government has changed the 941 form. With the stimulus package income tax changes the form 941 has changed to accommoate the COBRA payments. The COBRA premium payment assistance payments are reflected on box 12a. Box 12b reflects the number of individuals provided COBRA premium assistance. Box 13 has been added, this box will be filled with the total from boxes 11 and 12a. The value of box 12b will not affect the values in boxes 13, 14 or 15.

The other change is with box 7. Box 7 now includes this quarter's adjustments only which are 7a, 7b and 7c. This means adjustments 7d, 7e 7f and 7g no longer exist on the form.

The Payroll Software I use, Payroll Mate, has updated the 941 form. The three new boxes 12a, 12b and 13 have been added to part 1of the 941 form. Payroll Mate calculates box 13 from boxes 11 and 12a. However, Payroll Mate does not calculate the values of boxes 12a and 12b the user inputs the values. Payroll Mate will reflect the value of both boxes on the printed form.

My Payroll Program has been updated to reflect the income tax changes of the The American Recovery and Reinvestment Act of 2009.

You can download a free demo version of the program at http://www.realtaxtools.com/Downloads/PayrollMateSetup.exe

Stimulus Package Changes Withholdings

President Obama has signed the stimulus package. What does this mean for employers? We are required to have the tax table changes in effect for our employees as soon as possible no later then April 1, 2009.

I have contacted my Payroll Software provider, they have advised me that the program will be updated. As I have stated before Payroll Mate makes doing payroll easy, predictable, and affordable. Any updates to the Payroll Program are free of charge including the new IRS tax tables. All updates for Payroll Mate are sent via the Internet. This makes getting the updates quick and hassle free.

This software has been wonderful at a time when we need to be cutting back on spending, I feel this program is economical. As with other providers Payroll Mate fees were not raised. For $99 you get a terrific program, helpful technical support and free updates.

You can download a free demo version of the software from the following link http://www.realtaxtools.com/payrollsoftware/Small-Business-Payroll-Software.html [Payroll Software Download].

Printing My W2 Forms

It's that time of year again. It does seem to come around awful quickly. Hopefully, by now, we have all printed and mailed W2 forms to our employees.

I was able to complete this task directly from my
Payroll Program . Payroll Mate allows me to print W2 copies B, C, D, state 1 and 2 to blank paper. The employees' W2 numbers are automatically generated from the year's payroll.

As I talked about last year Payroll Mate added a new feature for laser substitute printing. This feature allows me to print W2 copy A and the W3 forms to blank paper. I paid an additional $25 for the convenience of bypassing the red ink forms of the past. The option is well worth the money. One note, you do need to print the laser substitute forms with a laser printer.

I was able to print all copies of W2 and W3 forms to blank paper directly from Payroll Mate .

You can download a free demo if you want to from the link below:
Payroll Software Download