Latest News

IRS Announces 2008 Standard Mileage Rates

Effective January 1st, 2008 the mileage reimbursement rate for business miles is set at 50.5 cents per mile.

2007 IRS Mileage Rate jumps 9% over 2006

The 2007 IRS mileage rate for business use is 48.5 cents per mile, up from 44.5 cents for 2006.

Michigan State Unemployment Exemptions

If you employee a high school student as part of a program for academic credit, i.e., “co-op student,” they are not eligible for unemployment. Neither are services of high school students who are under 18 in the week they perform the service and who work restricted hours or during a school break following which they return to school.

IRS Simplifies FUTA Deposit Rules (940)

Under the new rules effective January 1, 2005; employers are required to make a quarterly deposit for federal unemployment taxes if the accumulated tax exceeds $500. Raising the requirement from $100 to $500 will reduce burden to employers with eight employees or less by eliminating their requirement to make up to four FUTA tax deposits yearly.

IRS Tax Priorities – The IRS Small Business/Self-Employed division will focus on:

1. Independent Contractors – Misclassifying employees as independent contractors is a perennial problem.
2. Compensation – More S Corps will be audited for their salaries. Target – S Corps paying owner-employees minimal salaries subject to payroll taxes but making large distributions not subject to payroll taxes to the same individuals.
3. Fringes – The target is creative use of “tax free” in the type and amount of fringes, such as benefits added to health plans “on the side” for certain employees.