Small Business Tax Changes for 2009

1. IRS Standard Mileage Rate Change

The IRS standard mileage rate has changed for 2009. This rate is in effect for the entire year for businesses taking the standard mileage deduction.

2. Withholding Tax Changes for 2009/2010

The IRS has announced changes in withholding tax rates to recognize the Making Work Pay tax credits resulting from the American Recovery and Reinvestment Act of 2009 (ARRA).

3. Increased Social Security Maximum Tax in 2009

The tax rate for Social Security remains the same but the maximum deduction has been increased for 2009.