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2008 Payroll Updates Please note the following:
• The Oregon minimum wage increases from $7.80 per hour worked to $7.95 effective with January 1, 2008.
• The cap for Social Security withholding will be $102,000 for 2008.
• The State of Oregon Unemployment Insurance taxable wage base increases to $30,200 in 2008.
• Mileage reimbursement increases to $0.505 per business mile effective January 1, 2008.
• Have employees update their W-4's for 2008 if their filing status, exemptions or exempt status has changed. Employees claiming exempt from withholding during 2007 must complete a new W-4 to keep their exempt status. The new W-4 must be in the employers file by February 15, 2008. The State of Oregon requires employers to send a copy of the W-4 to the Department of Revenue within 20 days of receiving it if the employee claims: 1) more than 10 allowances, or 2) exemption from withholding and you expect his/her income to exceed $200 per week. The IRS has eliminated their requirement to file W-4's with them.
• Have employees complete a new Form W-5 for 2008 if employees are utilizing advance Earned Income Credit (EIC) payments for the new year as all W-5's expire 12-31-07.
• When hiring new employees, have them complete a W-4 and an I-9. There is a new updated I-9 (Rev. 06/05/07)N - available at www.uscis.gov. Visually verify and document the identification information with one ID from List A or one ID each from List B and C (drivers license and social security cards are from List B and C) and the employer must sign the form. Complete Oregon New Hire Report within 20 days of hire and send or fax to the state.
• The IRS has issued an updated Form W-9 which designates the payee’s tax status and whether they are exempt from reporting. Please have all your payees complete this form prior to payment therefore eliminating the chance of the payor paying 28% backup withholding for no TIN on file or mismatch. The TIN and name must match. The name is matched by the first four letters of the first significant name of the business name. You can check that the name and TIN match at http://www.irs.gov/taxpros/article/0,,id=109646,00.html if you choose to. Medical and legal services are reportable on Form 1099 information returns even if payee is a corporation.
If you have any questions please contact,
Margie Lang, Payroll Specialist Brenda Shively, Payroll Specialist Nora Adamo, Payroll Specialist
Guyer, Lindley, Bailey & Martin |
