|
 Return to Index
Important Domestic Employment Payroll/Compensation
Annual Updates
HomeWork Solutions, Inc., January 2006
Mileage Reimbursement: The standard mileage rate is 40.5 cents per mile. This may be used by employers to reimburse employees for the business use of their personal automobiles.
Prior Year Rate Information
Special post-Katrina News! On 9/9/2005, the IRS announced:
"The rate will increase to 48.5 cents a mile for all business miles driven between Sept. 1 and Dec. 31, 2005. This is an increase of 8 cents from the 40.5 cent rate in effect for the first eight months of 2005, as set forth in Rev. Proc. 2004-64." Read the full article at http://www.irs.gov/newsroom/article/0,,id=147423,00.html
|
Social Security Wage Base: The Social Security wage base for 2006 is $94,200. The maximum amount an employee can have withheld for Social Security tax in 2005 is $5,840.40. Employers must contribute funds equal to the amounts withheld from employees for both Social Security and Medicare(which has no wage base).
Qualified Transportation Fringe Benefit: The tax-free amount an employer may reimburse an employee monthly under a qualified transportation fringe benefit plan is $105. See Related Article
Educational Assistance: The annual tax free amount for employer-provided educational assistance is $5,250 for 2005 and now also applies to graduate-level course work. According to the IRS, "Employers offering tax-free educational assistance are required to have a written plan describing the benefit and the terms under which it is available." (Notice 97-60 Exclusion For Employer-Provided Educational Assistance). An employer may pay for any form of instruction or training that improves or develops an individual's capabilities, whether or not job-related or part of a degree program under a qualified education assistance program without defeating the non-taxable status of the benefit supplied to the employee. MORE INFORMATION
Return to Index
|
|
