Money Talks September / October 2011

Alabama Immigration Law

The Beason-Hammon Taxpayer and Citizen Protection Act, signed into Alabama law on June 9, 2011, is intended to reduce illegal immigration and enforce illegal immigration laws. The Act imposes significant new requirements on Alabama employers regarding hiring and employing unauthorized workers. Chief U.S. District Judge Sharon Lovelace Blackburn issued a temporary injunction halting the enforcement of the Act. The temporary order could remain in effect through September 29.

PBS has provided you with a summary of the Act that impacts employers.

Federal Unemployment Tax Act

The Federal Unemployment Tax Act (FUTA) surcharge of 0.2% expired on June 30, 2011 and the FUTA rate for employers went to 6.0% starting on July 1, 2011.  The IRS is working to revise Form 940, Employer’s Annual Federal Unemployment Tax Return, to accommodate the two different rates and the revised form will be available before the January 31, 2012 due date.  The FUTA surcharge was originally enacted in 1976 and Congress extended it several times. Unemployment benefits are not tied to the surcharge, so this does not affect current or future unemployment benefits.

IRS Increases Mileage Rates

The IRS increased the optional standard mileage rates for business and medical/moving purposes effective July 1, 2011 through December 31, 2011 by 4.5 cents. The rate for providing services for charitable organizations, which is set by statute not the IRS, remains at 14 cents per mile.

Cents per Mile: July 1, 2011 - December 31, 2011
Business: 55.5; Medical: 23.5; Charitable: 14

Taxpayers may use the rates to calculate the deductible costs of operating an automobile for business and other purposes in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and businesses to reimburse their employees for mileage. 

Payroll Taxes Most Burdensome for Small Businesses

A survey by the National Small Business Association found that the complexity of the Federal Tax Code is depleting small businesses of their time so they can handle the administration of taxes.

The most burdensome aspect for small businesses, both financially and administratively, was payroll taxes. Of the small businesses surveyed, only 44% use an external payroll company. Constant changes in rules and regulations, for example, the new W2 reporting requirement beginning in 2012 which will require employers to report their health care spending, will cause additional stress of time and money on small businesses.

If you are considering outsourcing your payroll processing, please contact PBS. We have helped many companies with their transition to our outsourced payroll solution.

Welcome New PBS Employee

Please welcome our newest employee at Payroll & Benefit Solutions - Beth Richwine. Beth Richwine is a payroll specialist working with clients on their payroll processing, filing and payment of taxes for federal, state and local tax authorities. Prior to PBS, Beth has worked as Payroll Coordinator, HR Assistant and in Accounts Payable.

Client Testimonials & Referral Program

Our clients will tell you they not only enjoy the efficient and thorough way we conduct our services, but they truly enjoy the close relationship and rapport we maintain with them throughout the year.   Here are a few testimonials from our satisfied clients:

"We outsourced our payroll to PBS in 2006 and we could not have been more pleased with the transition and ongoing service provided by all the employees. The staff is professional and pays close attention to detail to make sure everything is done correctly and in a timely manner. They are all so sincerely kind and polite that working with PBS is a pleasure with a capital "P". I could not ask for a better group of people to work with on my church's payroll."

"We started using your services a few months ago and I have been more than pleased with the results. I now have a comfort level that payroll is calculated correctly (including taxes); it's done on time every week and we have not had any problems. Your fees are the best in the industry and your service is wonderful. Thank you PBS!!"

PBS Client Referral Program: The end of year is close, which means it's the time that companies evaluate their payroll providers. If you know of someone that isn't currently using PBS, please let us know. We will give you a free month of our services for each referral that results in a new client. The best compliment you can give us is a REFERRAL.
 

Anna Kathryn Ellis
205.271.5407
aellis@pbspay.com