2008 PAYROLL MEMO

Group Term Insurance Section 79 Table 1 Rates

Section 79 of the Internal Revenue Code sets forth tax reporting requirements on employer provided Group Term Insurance above $50,000, which is considered taxable income for the employee.

5-Year Age Bracket	Table 1 Rates*
Under 25	$.05
25-29	.06
30-34	.08
35-39	.09
40-44	.10
45-49	.15
50-54	.23
55-59	.43
60-64	.66
65-69	1.27
70 and above	2.06

* Cost per $1,000 of protection per month

New Hire Reporting Requirements

Federal law mandates that all employees, regardless of size or type of business, comply with the New Hire Reporting requirements. New Hire Reports must be filed with the state in which the employee was hired. Timing of filing the report and information required varies by state. Most states require the form be filed with 20 days of hiring and include employer’s name address, federal identification number, contact name and telephone #, employee’s full name, gender (some states optional), address, social security number, date of birth (some states optional) and date of hire. Reporting methods also vary by state. Most states will accept a copy of completed W-4 if all required information is included. In Pennsylvania and New Jersey, reports can be made online or New Hire Reporting Form or W-4 Forms can be mailed or faxed. Delaware reports can be made electronically, by magnetic tape or mailing or faxing W-4 Forms or list showing required information to New Hire Unit.

Optional Business Mileage Rate for 2007

Standard mileage rate for transportation expenses incurred for business purposes for Year 2008 is $ .505 per mile.

IRS Table

Annual lease value method for automobiles

Automobile Fair Market Value	Annual Lease Value
$0 - 999	$600
1,000 - 1,999	850
2,000 - 2,999	1,100
3,000 - 3,999	1,350
4,000 - 4,999	1,600
5,000 - 5,999	1,850
6,000 - 6,999	2,100
7,000 - 7,999	2,350
8,000 - 8,999	2,600
9,000 - 9,999	2,850
10,000 - 10,999	3,100
11,000 - 11,999	3,350
12,000 - 12,999	3,600
13,000 - 13,999	3,850
14,000 - 14,999	4,100
15,000 - 15,999	4,350
16,000 - 16,999	4,600
17,000 - 17,999	4,850
18,000 - 18,999	5,100
19,000 - 19,999	5,350
20,000 - 20,999	5,600
21,000 - 21,999	5,850
22,000 - 22,999	6,100
23,000 - 23,999	6,350
24,000 - 24,999	6,600
25,000 - 25,999	6,850
26,000 - 27,999	7,250
28,000 - 29,999	7,750
30,000 - 31,999	8,250
32,000 - 33,999	8,750
34,000 - 35,999	9,250
36,000 - 37,999	9,750
38,000 - 39,999	10,250
40,000 - 41,999	10,750
42,000 - 43,999	11,250
44,000 - 45,999	11,750
46,000 - 47,999	12,250
48,000 - 49,999	12,750
50,000 - 51,999	13,250
52,000 - 53,999	13,750
54,000 - 55,999	14,250
56,000 - 57,999	14,750
58,000 - 59,999	15,250

For automobiles with a Fair Market Value in excess of $59,999, the annual lease value = (25% x automobile FMV)+$500.

Optional Business Mileage Rate for 2007

Send questions or comments to mail@hilgerflick.com Copyright © Hilger Flick & Co.

Send questions or comments to mail@hilgerflick.com
Copyright © Hilger Flick & Co.