Maximizing your performance through effective
financial management and consulting.
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Maximizing your performance through effective financial management and consulting.
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NEWS & ACCOUNTING UPDATES IMPORTANT TAX CHANGES FOR 2010 - Effective January 1, 2010 Ø IRS allowance for mileage has decreased for 2010 from $0.55 per mile to $0.50. This should be used for all qualifying, reimbursable mileage allowed up IRS regulations. For more information on 2010 and 2009 mileage reimbursement rates and changes please visit the IRS press release on IRS Mileage Announcements. Ø Maximum gross income for taxable wages for Social Security remains unchanged of $106,800 in 2010. Medicare will continue to have no limit imposed. Ø Tax rates for Social Security and Medicare will remain the same at 6.20% and 1.45%, respectively. The 2010 Federal Unemployment Tax (FUTA) limits will also remain unchanged in from last year at $7,000. To find more about social security and tax facts please visit the Social Security Administration on-line. Ø Colorado state unemployment tax (SUTA) taxable wage base for qualifying employees for 2010 is $10,000.00. Ø Tradition 401(k), SEP and 403(b) Contribution maximums remain the same from 2009 for 2010 to $16,500. Catch-up contributions have also remain unchanged for 2010 for those employees over age 50 of $5,500. Ø Simple 401(k) plans are different from tradition or safe harbor plans and limits for 2009 and 2010 remain unchanged of $11,500. Catch-up contributions remain unchanged for 2010 for those employees over age 50 of $2,500. There is no limit imposed on percentage contribution from compensation on a pre-tax basis as long as you do not exceed IRS limits and payroll taxes are paid. Combined employer/employee pay-in limits for all defined contribution plans are $49,000. For more detailed information on 2010 limitations on 401(k) and pension plans please see the IRS announcements below. IRS 2010 401(k) Resource Guide - Plan Participants - Limitation on Elective DeferralsIRS Announces Pension Plan Limitations for 2010Questions on Colorado Use Tax or Sales Tax Rates and License Verification ? To find more information about tax changes or specific business related information, please consultant your tax preparer, visit the IRS, state websites or contact us at (866) 575-0007 : Other valuable business resource links: Colorado Secretary of State - www.sos.state.co Colorado Department of Revenue - www.revenue.state.co.us Colorado Department of Labor & Employment - www.coworkforce.com
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