The recently enacted “American Recovery and Reinvestment Act of 2009” contains a wide ranging tax package that includes tax relief for low and moderate-income wage earners, individuals and families with college expenses, and home and car purchasers. The centerpiece of the tax package is a “Making Work Pay” tax credit of up to $400 per year for individuals, or $800 per year of couples. While this tax credit will not likely be available for you as a healthcare professional, it may affect the employees working for you. Unlike the $600 per worker lump-sum rebates that were issued last year, this credit will be received as a reduction in the amount of income tax that is withheld from the employee’s paycheck, or through a credit on a tax return. For the last half of 2009, it is expected that employees will experience about $13 a week of less Federal withholding from their paychecks. The IRS has issued the new income tax withholding and advance earned income credit payment tables, which can be found here. Clients utilizing our payroll services or the ASP version of the Client Bookkeeping Solution will have their tax tables updated automatically by us. If you are doing your own payroll, the IRS asks that employers start using the new tables as soon as possible, but no later than April 1, 2009.
Mike DeVries is a CERTIFIED FINANCIAL PLANNER ™ and a Certified Healthcare Business Consultant focusing on helping healthcare professionals. If you would like to learn more about becoming a client of Mike’s, contact him at www.vmde.com