ALERT

Congress is still not done changing the rules:::They are doing it again.

Watch for updates : The Heartland, Habitat, Harvest and Horticulture Act of 2008
The Heroes Earnings Assistance and Relief Tax Act
The Fiscal 2009 Budget, which contains $340 billion in tax relief over five years

ALERT

Federal Minimum Wage to Increase to $7.25 per Hour on July 24, 2009

Home	Allow us to provide the skills of full-service, experienced professionals at affordable cost to take care of all your Bookkeeping, Payroll and Income Tax needs. Spend your time doing what you know best, managing your business, not doing your bookkeeping. We work hard at being your experts in old-fashioned personal service. 17,000 Pages of Tax Regulations, 569 IRS Informational & Tax Forms, 144,000 IRS Agents, Oh My!
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IRS CIRCULAR 230 NOTICE: Any U.S. tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

ALERT

Those business's Receiving notices from-The Nebraksa Labor Law Poster Service-telling you to order posters(at a high cost) to be posted in the work place explaining Wage, Job Safety and Discrimination rules, with the threat of fines for not doing so, are way off base. You need to post the rules for your employees but you can get the posters FREE. Call 402 471-2786 and request that the posters be mailed to you. Or pick them up at the Employment office in the Golds Building at 10th & N Streets or the basement level at the Wage & Hours Office in the State Office Building.

Federal Minimum Wage to Increase to $7.25 per Hour on July 24, 2009

On May 25, 2007 President Bush signed legislation (H.R. 2206) that included increasing the federal minimum wage for the first time since 1997. The Act, referred to as the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 contains the Fair Minimum Wage Act of 2007 (Title VIII, Subtitle A) and the Small Business and Work Opportunity Tax Act of 2007 (Title VIII, Subtitle B).

The Fair Minimum Wage Act of 2007 increases the federal minimum wage rate to:

$5.85, effective 60 days after the date of enactment (i.e., July 24, 2007)

$6.55, effective 12 months after the 60th day (i.e., July 24, 2008)

$7.25, effective 24 months after that 60th day (i.e., July 24, 2009)

Numerous States Will Be Affected

Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. The minimum wage rate in several states is tied to the federal rate in various ways so it is important to check how this federal minimum wage increase may affect the state(s) you do business in. Currently, there are five states that have no minimum wage law (Alabama, Louisiana, Mississippi, South Carolina, and Tennessee).

More information regarding wages and minimum wage can be found at the U.S. Department of Labor website.

The Small Business and Work Opportunity Tax Act of 2007 contains some provisions that may be of interest to payroll professionals. One item of interest relates to FICA tax credit on employee tips. The Act freezes the minimum wage at $5.15 per hour for the sole purpose of determining the employer's business tax credit for the employer's share of social security and Medicare (FICA) taxes paid on employee tips above the minimum wage (IRC §45B). Another item of interest is the Work Opportunity Tax Credit. The Act extends the Work Opportunity Tax Credit for qualified individuals who begin work for an employer after December 31, 2007 and before September 1, 2011.

477-3822

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Last Update 04/30/09