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