WASHINGTON, Businesses planning to claim the newly-expanded work opportunity tax credit (WOTC) for eligible unemployed veterans and unskilled younger workers hired during the first part of 2009 have until Aug. 17 to request the certification required for these workers, according to the Internal Revenue Service. Newly-revised Form 8850, now available on IRS.gov, is used by employers to request certification from their state workforce agency. The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and "disconnected youth" to the list of groups covered by the credit. Though eligible unemployed veterans and disconnected youth who begin work anytime during 2009 or 2010 may qualify a business for the credit, certification by the state workforce agency is required.

In general, an unemployed veteran is a person discharged or released from the military during the five years preceding the hiring date who received unemployment benefits for at least four weeks during the one-year period ending on the hiring date. A "disconnected youth" is a person age 16 to 24 on the hiring date who has not been regularly employed or attending school and who meets other requirements.The WOTC offers tax savings to businesses that hire workers belonging to any of 12 targeted groups, including unemployed veterans and disconnected youth. The other 10 include people ages 18 to 39 living in designated communities in 43 states and the District of Columbia, Hurricane Katrina employees, recipients of various types of public assistance, and certain veterans, summer youth workers and ex-felons. The instructions for Form 8850 (http://www.irs.gov/pub/irs-pdf/i8850.pdf) detail the requirements for each of these groups.

 

Click the following link to view the 2009 IBS and bank holiday calendar: read more ...

Click the following link to view the 2009 Tax Rates and Wage Limits: read more ...

For 2009, the dollar limit on annual elective deferrals under 401(k) plans, 403(b) annuities, 457 (deferred compensation) and salary reduction SEPs is $16,500. The maximum catch-up contribution for employees over 50 years of age is an additional $5,500. The dollar limit on annual elective deferrals to a SIMPLE plan is $11,500 with catch-up contributions at a maximum of $2,500. 

Click the following link to access the 2009 Standard Mileage Rates announcement posted by the IRS on 11/24/2008:

http://www.irs.gov/newsroom/article/0,,id=200505,00.html 

Click the following link to view the 2009 California Withholding Schedules: read more ...

A California appellate court decided three significant issues related to meal and rest periods, easing the burden on employers.  Use the following links to read a synopsis of the decision as well as the complete text:

http://www.employeradvice.com/public/3903.cfm
http://www.courtinfo.ca.gov/opinions/documents/D049331A.PDF 

Effective January 1, 2008, Minimum Wage for California Employers is $8.00.  

The Fair Minimum Wage Act of 2007 increased the Federal Minimum Wage rate to $5.85 per hour effective 7/24/07. The rate will increase to $6.55 per hour effective 7/24/2008 and to $7.25 per hour effective 7/24/2009. States like California will not be impacted because their minimum wage already exceeds the Federal rate. The following states were impacted by this change in 2007:  Alabama, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Puerto Rico, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia and Wyoming.  Please review your pay rates if you have employees in any of these states. 

Please be sure to document your new hires properly. I-9 and W-4 Forms must be completed and kept on file. If you wish to further validate a Social Security Number with an employee's Social Security Card name, you may call 1-800-772-1213 for confirmation. 

ALL California employers are required to participate in the New Employee Registry Program. In the past, employers in certain industries have not been required to report newly hired employees. Please contact us if we are not currently reporting your new hires and you would like us to provide new hire reporting services.