Certified Public Accountants - Tax Advice

Payroll Guide for Calendar Year 2008

Employee Rates

FORM 941			FORM CRS-1	FORM WC-1
FICA - Social Security	FICA Medicare	Federal Withholding	State Withholding	Workers' Comp Assessment Fee
6.2% up to $102,000 wages (for 2008)	1.45% all wages	per 2008 tax tables	per 2008 tax tables (See CRS-1 Booklet)	$2 per employee on last payroll of quarter

Employer Rates

FORM 941		FORM 940	FORM ES903A	FORM WC-1
FICA - Social Security	FICA Medicare	Federal Withholding	State Unemployment	Workers' Comp Assessment Fee
6.2% up to $102,000 wages (for 2008)	1.45% all wages	0.8% to $7,000 wages	5.4% or less (as set by state) to $19,900 wages	$2.30 per employee per quarter (employer may pay employee portion)

Compliance Notes

Form 941

Employee FICA W/H & Fed W/H (FIT) plus Employer FICA: Make deposits either semi-weekly or monthly according to IRS notice, electronically, or with a tax deposit coupon (Form 8109). Take the deposit coupon to your bank by the due date of the payment. EFTPS payments must be made by 2:00 pm of the day prior to the due date.

Semi-weekly: Look-back at quarters 1 & 2 of last year and quarters 3 & 4 of year before last. If the sum of deposited taxes required on Line 8, Form 941 for those 4 quarters exceed $50,000, you are required to deposit taxes on a "Semi-weekly" basis.

Semi-weekly: If wages paid on Wed, Thurs, or Fri, deposit by next Wed. If wages paid on Sat, Sun, Mon, or Tues, deposit by next Fri. (Use old 3 banking day rule if easier to remember.)

Monthly Depositor: If taxes in look-back period are less than $50,000, you are required to deposit taxes on a "monthly" basis.

Monthly: Deposit by 15th of next month.

$100,000 Rule: Taxes due in excess of $99,999.99 must be paid on the next banking day.

Report information on quarterly Form 941 due Apr 30, Aug 2, Nov 1, and Jan 31. Any tax unpaid at the end of a quarter must be deposited at the bank by the due date. (If your liability is $2,500 or less for the entire quarter, send payment with the report.)

EFTPS

Mandatory electronic payment of federal tax deposits (EFTPS) is required if federal tax payments were greater than $200,000 in a year after 2000. If you are already an EFTPS filer, you must continue.

Remember:

All NEW employees hired after October 1, 1997 must be reported to the New Mexico Human Services Department, New Hires Directory, P.O. Box 29480, Santa Fe, NM, 87592-9480, within 20 days of hiring the new employee. This can be done on the internet at https://newhirereporting.com. Penalties for failure to file will be assessed. Call us if you have questions.

Form CRS-1

State Withholding Taxes (SIT): Pay tax on CRS-1 Form with Gross Receipts Tax - due 25th of the month following the period end (monthly, quarterly, or semi-annually as determined by the State).

Form 940

Federal Unemployment Tax (FUTA): When total tax due reaches $500 or more, make a deposit by the end of the month following the end of the quarter. You can make deposits more often if convenient (e.g. same time as 941 deposits). File report 940 or 940EZ annually. If tax due at the end of the year is less than $500, it can be paid with annual report.

Form ES-903A

State Unemployment Tax (SUTA): Pay tax quarterly with report which is due the last day of the month following the end of each calendar quarter.

Form WC-1

Worker's Compensation Personnel Assessment Fee: Pay with quarterly report ($4.30 per employee) which is due the last day of the month following the end of each calendar quarter.

Rates and instructions as of January 1, 2006. Phone us to check for any changes.

Phillippi, Wright & Co. LLC
Certified Public Accountants and Business Advisors
4101 Indian School Rd. NE Suite 310
Albuquerque, New Mexico 87110
505-255-1040 Fax 255-1065 pwc@pwc-cpa.com