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CCH Payroll and Unemployment Insurance with Social Security NetNews™

October 7, 2009
 
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Payroll Management Guide

Continuing resolution would extend E-Verify through Oct. 31

On September 25, 2009, the House of Representatives passed a continuing resolution (CR) containing a one-month extension of the federal government's E-Verify program, which is currently scheduled to expire on September 30. Passed by the House by a 217-190 vote, the CR, which also extends other immigration programs, was attached to the Fiscal Year 2010 Legislative Branch Appropriations Act (H.R. 2918), the only one of the twelve fiscal year appropriation bills awaiting final passage by Congress. Under the continuing resolution, funding would continue for the agencies through October 31. The federal government's new fiscal year begins October 1.

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California reissues 2009 withholding tables

California has reissued their 2009 withholding tables due to the recently signed budget. All of the tables are reproduced in the CCH PAYROLL MANAGEMENT GUIDE and are available on California's Employment Development Department website at http://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm. Employers are advised to implement the new tables, effective for November and December of 2009, as soon as possible.

In addition, the rates for supplemental wages has increased, the rates are 6.6% for supplemental wages and 10.23% for stock options and bonus payments paid on or after November 1, 2009. (www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm.)

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IRS requests comments on "highly compensated employee"

The IRS is soliciting comments concerning Notice 97-45, Highly Compensated Employee Definition. Notice 97-45 provides guidance on the definition of highly compensated employee (HCE) within the meaning of Code Sec. 414(q) of the Internal Revenue Code, as simplified by section 1431 of the Small Business Job Protection Act of 1996, including an employer's option to make a top-paid group election under Code Sec. 414(q)(1)(B)(ii). The notice requires qualified retirement plans that contain a definition of HCE to be amended to reflect the statutory changes to Code Sec. 414(q).

Written comments should be received on or before November 30, 2009 to be assured of consideration, and should be directed to R. Joseph Durbala, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224. (74 FR 49911, September 29, 2009.)

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Unemployment Insurance Reports with Social Security

SSA establishes Financial Literacy Research Consortium

Michael J. Astrue, Commissioner of Social Security, has announced the establishment of a new Financial Literacy Research Consortium (FLRC), made up of research centers at Boston College, the RAND Corporation and the University of Wisconsin. The FLRC, supported through five-year cooperative agreements, will develop innovative materials and programs to help Americans plan for a secure retirement.

"We have a responsibility to help the public understand the role of Social Security benefits and the need for them to save as they plan for their future," said Commissioner Astrue. "Consequently, we have launched a research initiative to better inform the public about retirement saving options." The FLRC will tailor materials for Americans at different stages of their working lives --new workers, mid-career professionals, near-retirees and those who have already left the workforce --to address the different challenges these individuals face. The FLRC also will help traditionally underserved populations better understand the path toward a secure retirement.

"The consortium constitutes an impressive collection of expertise and resources with a deep understanding of issues related to financial literacy," Commissioner Astrue said. "We look forward to building a strong partnership with the FLRC as well as with other federal agencies with similar missions. In these challenging economic times, this partnership will help Americans to solidify their financial future" (SSA Press Release, September 30, 2009).

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Unemployment Insurance Reporter with Social Security

Unemployment Insurance Reporter with Social Security provides in-depth coverage of federal and state laws and regulations, including Unemployment Insurance, Social Security, Supplemental Security Income, and Disability. With all the facts and data about taxes and benefits under major subject categories, and expert “plain English” explanations, analyses and indexes, there is no other product that offers the same scope of coverage.

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