Small Biz Tips
Payroll Rates
Social Security and Medicare 6.20%/1.45%
SS wage limit $106,800
Medicare wage No Limit
Futa tax wage base $7,000
Futa rate 6.2% (max credit 5.4%/min deposit rate .8%)
California disability insurance: 1.1% maximum deduction ($997.36)
2009 Mileage Rate (IRS)
55 cents per mile for business miles driven;
24 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service of charitable organizations.
Helpful Links
W-4 Forms: www.irs.gov
To verify employee names and social security numbers: www.socialsecurity.gov
Independent Contractor Service (EDD)
Any business or government entity that is required to file a federal Form 1099-MISC (IRS) for services received from an independent contractor is required to report specific independent contractor information to EDD.
The independent contractor reporting requirements apply if you hire an independent contractor and the following statements all apply:
1) You are required to file a Form 1099-MISC (IRS) for the services performed by the independent contractor.
2) You pay the independent contractor $600 or more OR enter into a contract for $600 or more.
3) The independent contractor is an individual or sole proprietorship.
If all the above statements apply, you must report the independent contractor to EDD within 20 days of paying/contracting for $600 or more in services. You are not required to report independent contractors that are corporations, general partnerships, limited liability partnerships, and limited liability companies.