VIRGINIA TIDBIT

Shirley Plantation

Virginia's oldest plantation, settled in 1613. Oldest family-owned business originating in North America. Eleven generations of the Hill-Carter family have resided at Shirley. World famous flying staircase in main house and Queen Anne Forecourt are unique to this country. Original family portraits, silver and furnishings grace the house. Home and marriage site of Anne Hill Carter, mother of Robert E. Lee. Panoramic views of the James River.

Payroll News Concerning the IRS

Legislative Updates

Payroll News and the IRS

IRS Updates W-4 Withholding Calculator

Legislative Updates:

2008 Social Security Wage Max

The Social Security Administration announced the 2008 Wage Max. It is $102,000 and the rate is still 6.2%. There is no change in the Medicare rate of 1.45% and there is still no maximum for this withholding.

IRS Issues Advance Copies of 2008 Tax Withholding and AEIC Payment Tables

The IRS has released advance copies of the 2008 federal income tax withholding and advance earned income credit (AEIC) payment tables.

Withholding tables. Notice 1036 includes both new percentage and wage bracket method tables. Withholding allowances will increase in 2008. The values for one allowance in 2008, per payroll period, are as follows: Weekly —$67.31, Biweekly — $134.62, Semimonthly — $145.83, Monthly — $291.67, Quarterly — $875.00, Semiannually — $1,750.00, Annually — $3,500.00, and Daily or Miscellaneous — $13.46.

AEIC tables. IRS Notice 1036 includes both new percentage and wage bracket method AEIC tables for 2008.

The 2008 federal income tax withholding and advanced earned income credit (AEIC) payment tables can be found at AEIC tables .

2008 Social Security Wage Max

The Block for the Employee’s Social Security number has moved to “Block A” at the top of the form. For more information visit the IRS W2 pdf

IRS Successfully Processing Tax Forms Affected by AMT Legislation

WASHINGTON — The Internal Revenue Service is now processing five tax forms affected by legislation involving the Alternative Minimum Tax (AMT).
On Monday, IRS systems began to accept and process returns that include the five affected forms. After several days of processing, the IRS has confirmed all systems are working properly.
In late December, the IRS announced it would delay processing of several tax forms. For the vast majority of taxpayers, the filing season this year began on time. But for any taxpayer whose return included any of the five affected forms, filing opened on Feb. 11.
Taxpayers who use the five forms can now file their tax returns as normal.
The affected forms are: • Form 8863, Education Credits
• Form 5695, Residential Energy Credits
• Schedule 2, Form 1040A, Child and Dependent Care Expenses for Form 1040A Filers
• Form 8396, Mortgage Interest Credit
• Form 8859, District of Columbia First-Time Homebuyer Credit
Approximately 13.5 million taxpayers will use these forms this year. Altogether, the IRS expects to receive nearly 140 million individual tax return submissions this year. The IRS has worked closely with the software industry and tax practitioners during the reprogramming process to minimize disruptions for taxpayers and the tax community.
For more information, see Alternative Minimum Tax –– How It Affects Filing Season 2008.

IRS Updates W-4 Withholding Calculator

The Internal Revenue Service has revised its online withholding calculator to reflect the change in the federal income tax rates on individuals that began July 1. Employers can refer employees to the site to help them figure, on their own, the appropriate federal income tax withholding, so that the correct amount can be withheld from pay, a note to the IRS Home Page said. The results of this program can be used by an employee to complete a new Form W-4 to submit to an employer, according to IRS.

Access the "IRS On-line Withholding Calculator" by clicking on the below link:
http://www.irs.gov/prod/ind_info/wh/