For those clients who filed for an extension for their 2008 tax returns, the extension will expire on Thursday, October 15, 2009. Please get to us the information to prepare your 2008 tax returns no later than Friday, October 2, to ensure that the returns will be completed by the filing deadline. Please note that no additional extension can be filed for the 2008 tax returns.
The 2009 tax organizers will be electronically mailed (e-mailed) in December 2009/January 2010. If we do not yet have your e-mail addresses please contact us at (925) 827-1400. If you do not have e-mail or you do not wish to have your tax organizer e-mailed, we will mail (via U.S. Postal Service) to you.
The 2nd quarter 2009 payroll and sales tax forms must be filed no later than Friday, July 31, 2009. Please get to us your payroll/sales information no later than Friday, July 24, 2009, so the forms can be completed and filed in a timely manner. Remember, you may be subject to interest and penalties if the forms are filed late.
IRS payroll withholding rates are remaining the same in 2009 as they were in 2008. Social Security withholding rate is 6.2% and Medicare is 1.45%. Remember that unless you are the owner of the company, each paycheck must have Social Security and Medicare withholding.
The State of California has increased the State Disability Insurance (SDI) rate from 0.8% in 2008 to 1.1% in 2009. SDI withholding is also required unless you are the owner of the company or your company has signed with the state for Voluntary State Disability Insurance (VSDI or VDI).
You may be eligible to receive the 2009 Recovery Rebate Credit if you did not receive a 2008 Stimulus Payment.
The criteria for the 2009 Recovery Rebate Credit are:
- You did not qualify for the 2008 Stimulus Payment.
- You or your family has at least $3,000 in qualifying income from or in combination with, Social Security benefits, Veterans Affairs benefits, Railroad Retirement benefits and earned income. Supplemental Security Income (SSI) does not count as qualifying income for the credit.
- You and any family members listed on your tax return have valid Social Security numbers.
- You are not a dependent or eligible to be a dependent on someone else's federal tax return. (The same must be true of any family members claimed on your return.)
Things to keep in mind regarding the Recovery Rebate Credit:
- The credit amounts are:
- The credit amount you qualify for (if any) will be included with your 2008 tax return. This will result in either an additional amount of your federal tax refund payment or a reduction of the balance due on your federal tax return.
Effective Thursday, July 24, 2008, the minimum wage increased from $5.85 to $6.55 per hour. It is anticipated that another increase in the minimum wage will take effect on July 24, 2009. This increase will make the minimum wage $7.25 per hour.
The 2009 Standard Milegage Rates are: