Payroll Impacted by President’s Fiscal 2010 Budget Proposals
Posted on April 1, 2011
President Obama’s 2012 proposed budget will impact many payroll
operations. The proposals would:
* Require contractor’s to provide the business a certified taxpayer identification number.
* Hold employee leasing companies liable for clients’ federal unemployment taxes.
* Make FUTA surtax rate of 0.2% permanent.
* Provide short-term and long-term unemployment tax relief to employers and increase FUTA wage base.
* Alter information reporting requirements (i.e. Form 1099-MISC) on payments to corporations.
* Reinstate income tax rates for upper-income taxpayers.
* Require most employers to offer an automatic IRA option to employees with regular contribution.
* Contain initiatives to recognize worker misclassification.
* Establish state relationships to provide unemployment insurance initiatives.
* Permanently extend provisions such as the marriage penalty relief, dependent care credit, adoption tax credit and assistance, and earned income tax credit.
* Change federal wage reporting process to quarterly.
* Support electronic employment verification program.
To view the proposed budget, go to http://www.whitehouse.gov/omb/budget/.