ASI Employer Solutions Blog

Are You Having Enough Withheld for Federal Taxes?

Paula D. — Fri, 10 Apr 2009 17:19:12 +0000

As of April 1, 2009 all Employers had to apply the new federal tax withholding tables released in late February by the IRS. The National Taxpayer Advocate, Nina Olson said “Two-income and married workers, as well as pension recipients, may be under-withheld on income tax in 2009 because of the new withholding tax table changes for the Making Work Pay Credit”.

The new tables reduced the amount withheld for Federal taxes. If you have more than one job or you are married and your combined income places you in a higher tax bracket, you may want to file a new Form W-4 with your employer. You may claim fewer withholding allowances on line 5 or request additional amounts be withheld on line 6.

For additional help, get IRS Publication 919, “How Do I Adjust My Tax Withholding?” or visit the IRS website at www.irs.gov and use the ”Withholding Calculator” to see if you are having the right amount withheld.

Notice to Employees-IRS

W-5 2009 Earned Income Credit Advance Payment Certificate

Paula D. — Mon, 23 Mar 2009 20:05:39 +0000

There are NEW provisions that pertain the the 2009 W-5 form as a result of the ARRA (American Recovery and Reinvestment Act) of 2009. The IRS will not update the W-5 Earned Income Credit Advance Payment Certificate form despite these changes.

As per the IRS: When implementing a Form W-5, employers should make the follow adjustments, see attached where I noted the changes as an example:

Click here for W5 sample

New Federal and EIC Tax Tables

Paula D. — Tue, 03 Mar 2009 22:53:15 +0000

ASI updated their payroll system’s Federal and Advanced Earned Income Tax (EIC) tables on February 28, 2009. This is a result as of Notice 1036 (Rev. February 2009) from the IRS states, “The IRS asks that employers begin using these tax tables in lieu of the applicable previously published tables as soon as possible, but no later than April 1, 2009″. What this means is you may notice a difference in your “net” pay of approximately $10.00 or more per pay.

Economic Stimulus Bill

Sherri K. — Thu, 26 Feb 2009 19:38:55 +0000

Does the Economic Stimulus Bill (now referred to as the American Recovery and Reinvestment Act) affect your benefit programs? There are many parts to this new legislation but it seems the most pressing for employers may be the COBRA changes. If you are an employer with 20 or more full-time employees and offer a group health plan to your employees this bill may affect you. If you are an ASI client and ASI administers your group health plan, you can relax. ASI has access to many resources for the most updated information. We are diligently working to keep our client’s compliant.

If you’re trying to wade through all the chaos and wonder what this bill means for you as an employer, you’re not alone. The information we have received is stating that employees who became eligible for COBRA due to involuntary separation from employment between 9/1/08 and 12/31/2009, may be eligible for ”premium assistance” for COBRA. Employers will be required to send additional notices, extend the period of election and pay 65% of the premium for eligible COBRA participants. The employees must comply with certain requirements as well. The employer will then receive “Credit” for this premium contribution with a Payroll Tax reduction to be taken on their Federal Tax form 941.

This of course is a brief description of the information as it relates to COBRA. Contact your Cobra Administrator or Health plan carrier for more information. Or call ASI to find out how our Benefits Department can help you with your Benefits Administration needs.

ASI Employee Professes His Love

Matt D. — Tue, 17 Feb 2009 18:28:27 +0000

Five lovers from around the country competed to profess their love on Friday, February 13, 2009 in the heart of Times Square. Amoung them was ASI and JC Data Enterprises employee, Steven Kruzik. Known locally and throughout the ASI family as the man with the tunes, he won the contest for his wife, Mary Kruzik. The contest was sponsored by Zales and judged by celebrities such as Dr. Ruth Westheimer, Michael Somerville (of Glamour), Rebecca Dolgin (of The Knot), and authors Matt Titus and Tamsen Fadal.

Congratulations goes out to Steve for showing the world just how much his wife means to him. We are all proud of him at ASI.

Steve professes his love for his wife Mary

Photo taken by: Kevin Tachman

Valentine’s Day Surprise

Paula D. — Mon, 16 Feb 2009 17:52:35 +0000

The Payroll Department was pleasantly surprised on Friday, February 14th by receiving balloons from “Mr. Valentine”. The entire staff at All Staffing Inc were delighted by the thoughtful gesture of some unknown person that brightened up the whole office with pink, white, & red balloons. We would like that person to know that the gesture was very much appreciated by the department and would like to say ”Thank You”.

2009 I-9 Revisions

Victoria F. — Thu, 29 Jan 2009 00:45:42 +0000

February 2, 2009 is the magic date when all employers must begin using the revised I-9 Employment Eligibility Verification Form. This revised form must be completed for all new employees hired on or after February 2, 2009 as well as for all re-verifications of existing or rehired employees after this date. Employers should continue to use the current form for employees hired or re-hired prior to February 2, 2009.

Some of the more apparent changes that you will notice on the new form include a shortened list of acceptable documents under List A and expired documents are no longer permitted. Additionally, Section 1 of the I-9 has been expanded to differentiate a new hires status as “citizen” , “non citizen national”, “lawful permanent resident” or “alien authorized to work”. The current form combines “citizen” and “non citizen national”.

Additional information regarding the new form can be found at www. uscis.gov.

New Jersey Family Leave Insurance Deduction Effective 01/01/2009

Paula D. — Tue, 30 Dec 2008 20:28:33 +0000

Effective January 1, 2009 New Jersey employees will see a new deduction for the NJ Family Leave Insurance Disability Benefits Law. This new deduction will begin as of January 1st and will be at the rate of 0.09% (0.0009) of the employee’s taxable wages ($28,900) as defined in the Unemployment Compensation Law. The rate increases to 0.12% (0.0012) beginning in 2010. There is no employer contribution.

Beginning July 1, 2009, employees may apply for up to six (6) weeks of FLI benefits during leave taken to provide care for a sick family member or to care for a newborn or newly adopted child. Eligible applicants who are covered by the state FLI plan will received weekly benefits amounting to no more than two-thirds (2/3) of their weekly pay, subject to the same maximum as temporary disability insurance (TDI) for an individuals own disability (the maximum weekly benefit rate for TDI is $524.00 in 2008).

For more information, please visit the following website: http://lwd.dol.state.nj.us/labor/employer/ea/legal/FLI.html

Earned Income Tax Withholding Change Effective 01/01/2009

Paula D. — Tue, 30 Dec 2008 19:54:11 +0000

Current earned income tax, EIT (local tax) regulations require employers to withhold EIT from their employees at either the resident or non-resident rate based on where your employer is located. ASI Employer Solutions has always withheld the EIT based on the employee’s resident rate because it is usually more beneficial to you to withhold that way. Effective January 1, 2009, we will no longer be able to withhold EIT based on your resident rate. We will have to withhold based on current regulations. This change will affect employees whose resident tax rate is higher or lower than the employer’s location tax rate. It will also affect those employees that work in a location that does not have EIT. If your work location does not have EIT, we will no longer withhold EIT from you. If you would like to compare tax rates please go to the following website: http://munstatspa.dced.state.pa.us/FindLocalTax.aspx

If you have questions or comments please email us at: finance@ASIpeo.com

A. McGlinchey Earns ASI 2008 Customer Service Award

Paula D. — Tue, 30 Dec 2008 14:59:01 +0000

At the recent Holiday party for ASI Employer Solutions held in December, Angelique McGlinchey was awarded, by her peers, with the ASI 2008 Customer Service Award. Angelique has been with the company since May 2002 and works in the Payroll Department. This award is presented annually by the company President/CEO, Stanley J Costello Jr to the employee who throughout the year was recognized with exceptional customer service to our clients, employees, and other miscellanous duties. We are pleased to have Angelique with our company and value her as an employee.