Tax Changes in 2009 - What's New? What Is Changed?

The IRS has made changes in some taxes and other federal agencies have revised legislation, effective January 1. Here is a reminder of some tax and law changes in 2009. At the beginning of business on Monday (or your first day of business this year), these changes are in effect:

Social Security Maximum Contribution
The new Social Security maximum contribution for 2009 is $106,800. That means you should stop making (and paying) Social Security for employees once they reach $106,801 in eligible earnings in 2009. The maximum tax contribution for each employed individual of $6,621.60 (with an equal contribution by the employer). This change does not affect Medicare, which has no maximum deduction. The rate for Social Security remains at 6.2 percent, and the Medicare rate continues at 1.45 percent, for a total deduction for each employee of 7.65 percent.

Standard Mileage Deduction
The IRS-allowed standard mileage deduction rate has changed for 2009. . Of course, you can also determine your mileage deduction by using actual costs, but the standard deduction is easier to figure. All you need to do is keep track of the number of miles you travel for business. The maximum deduction amount is 55 cents per mile for business driving.

FMLA Changes
Final regulations for the Family Medical Leave Act will go into effect January 16, with new forms that must be used for reporting purposes, and a revised FMLA notification poster for your workplace. Note that the provisions of the Family Medical Leave Act only apply if you have 50 or more employees.