Beginning January 1, businesses can no longer make their payroll tax deposits at their bank.  The deposits MUST be made electronically. See http://www.irs.gov/efile/article/0,,id=98005,00.html for more information.

Medicare withholding has changed for 2011.  See http://www.irs.gov/newsroom/article/0,,id=232590,00.html?portlet=7 for more information.  If you have employees please take note!  For now, use this link to compute withholding - http://www.irs.gov/pub/newsroom/notice_1036.pdf?portlet=7.

Below is an exert from "Sunsetting Benefits of the EGTRRA," available on our home page.  To see the entire article go to http://www.cgtax.com/content/pdf/tax_brief/US_EGTRRA_Sunset_09_13_2010.pdf.

Personal Exemption Phaseout for Higher-Income Taxpayers

The personal exemption phaseout (PEP) reduces or eliminates the deduction for personal exemptions for taxpayers with incomes over certain thresholds. The total amount of exemptions that may be claimed by a taxpayer is reduced by two percent for each $2,500 or portion thereof (two percent for each $1,250 for married couples filing separate returns) by which the taxpayer’s AGI exceeds the applicable threshold.

Under EGTRRA, the personal exemption phaseout was gradually repealed starting in 2006. For 2010, the personal exemption phaseout is entirely repealed.

Under the sunset provision of EGTRRA, the personal exemption phaseout will be re- instated in full for tax years beginning after December 31, 2010.