Congress extends payroll tax relief — for 2 months

Mark Patterson

After much debate and political maneuvering, Congress has passed and President Obama has signed a two-month extension of payroll tax relief. The Temporary Payroll Tax Cut Continuation Act of 2011 will extend through Feb. 29, 2012, the 2010 Tax Relief Act provision that reduced the employee portion of the Social Security tax on earned income from 6.2 percent to 4.2 percent.

The Senate had passed a previous version of the act Dec. 17, but that version couldn’t garner enough votes in the House. In negotiations with Speaker of the House John Boehner, Senate Majority Leader Harry Reid agreed to appoint conferees to work with House conferees on a full-year extension. In addition, the House added language to the Senate’s version of the continuation act to allow employers to avoid certain compliance challenges that otherwise could result from the temporary extension.  

For 2012, the maximum taxable wage base for Social Security taxes is $110,100 (up from $106,800 in 2011). So, assuming a full-year extension is ultimately passed as planned, the maximum tax savings from this break will be $2,202. Because of the language the House added to the act, however, high-income earners may — temporarily — be able to enjoy this entire savings even if the full-year extension isn’t ultimately passed.

The language allows employers to withhold employee payroll taxes at the 4.2 percent rate on all wages paid during the two-month period subject only to the full 2012 wage base of $110,100 and without regard to the $18,350 cap on wages earned through the end of February that was included in the Senate version of the act. But if the full-year extension isn’t passed, an amount equal to 2 percent of those excess wages will be recaptured on the employee’s individual tax return for 2012.

The language change was requested by the National Payroll Reporting Consortium because they contended that the two-month cap would have made it almost impossible for some employers to change their payroll systems in time to comply with the law.

The continuation act includes other provisions as well, such as extending for two months the following:

• Enhanced unemployment benefits — but only for states with high unemployment,
• Current Medicare payment rates for physician services — the rates were scheduled to be reduced 27.4 percent starting Jan. 1, 2012, and
• Other Medicare-related provisions that are normally extended when physician payment rates are extended.

The act also increases certain Fannie Mae and Freddie Mac fees and addresses the controversial Keystone XL pipeline.

The main point of debate regarding a full-year extension of payroll tax relief, as well as the other extensions, is how to pay for them. Congress has yet to address many other tax breaks that will expire at year end, such as alternative minimum tax relief, the research credit and the deduction for state and local sales tax in lieu of state and local income taxes.

In addition, a variety of rates and other breaks are set to expire at the end of 2012. So the coming year will likely be a very interesting one tax-wise. Please contact us if you have questions about how tax law changes — as well as tax law uncertainty — could affect you.

KraftCPAs is a public accounting (CPA) firm headquartered in Nashville, TN that provides tax, accounting, audit and consulting services to businesses in middle Tennessee.

This article originates from our partner company, KraftCPAs, website to bring our clients the most up-to-date information.

http://www.kraftcpas.com/cgi-bin/aw/acuweb.cgi?s=kraftcpas2&t=taxnewsdetail.htm&StoryID=1040&

Payroll Year-End Alert

Jeff Frye, GP Consultant

Kraft Enterprise Systems, LLC

Because of the political back-and-forth in Washington it is strongly advised that GP Payroll users wait until the last possible moment to update their payroll tax tables in GP.  Right now I do not think anyone knows what is going to happen with the FICA withholding rate and this debate may even eventually spill over into changes with the FIT rates, we just do not know what our representatives are going to do going into an election year. 

So go ahead with the steps that include running the year end payroll update and creating the 2011 year end file, but do not update the tax tables until you absolutely must for doing that first payroll with a January 2012 date. 

FYI: the Senate passed bill that was killed in the House today was really, really going to mess things up.  Payroll service providers as well as payroll software vendors were being put into a quandary similar to the one last year.  If the two-month extension provision had passed with the special wage limits there was no way GP or any other software would have been able to calculate the correct FICA withholding for higher paid employees.   This would have meant more manual calculations, just like the beginning of 2011.

John Pamplin Joins Kraft Enterprise Systems as

Microsoft Practice Director

Pamplin to direct a team of consultants who work with KES clients on Microsoft products.

 

John Pamplin Joins Kraft Enterprise Systems

Kraft Enterprise System’s dedication to putting the customer first held tremendous appeal.

Nashville, TN (PRWEB) November 09, 2011

John Pamplin, former Managing Principal of Seteq Corporation in Atlanta, has been named Microsoft Practice Director of Kraft Enterprise Systems. In his new role, Pamplin will direct a team of consultants who work with KES clients on Microsoft products.

Pamplin, a Nashville native, has extensive experience in the use of information technology in manufacturing, healthcare, banking and the travel industry. As an entrepreneur, Pamplin has founded two firms, in HMO data warehousing and IT consulting.

“John has been in the same shoes as many of our clients and faced similar issues,” said Greg Lemon, President of Kraft Enterprise Systems. “This perspective will be invaluable as he leads our Microsoft consultants in developing solutions for our clients.”

In addition to founding Seteq, a consulting firm specializing in software development, Pamplin was the Chief Information Officer for TurboChef during the company’s migration of its manufacturing from China to the United States. He also led TurboChef’s implementation of Microsoft Dynamics Great Plains. Pamplin received his Bachelor’s degree in Business Administration from the University of Tennessee-Knoxville, and a Master’s degree in Business Administration from Vanderbilt University.

“Kraft Enterprise System’s dedication to putting the customer first held tremendous appeal,” Pamplin said. “They have a closer customer relationship than in any firm that I’ve experienced. Their team-based approach really sets them apart.”

Nashville-based Kraft Enterprise Systems specializes in helping mid-sized companies grow through technology assessment, implementation and customization. Microsoft products handled by KES include Dynamics GP, Dynamics CRM and Sharepoint.

Microsoft Dynamics® ERP Holiday Season  Offer

Effective November 1, 2011 through the end of the business day December 22, 2011

For a limited time, Microsoft Dynamics ERP customers (excluding Microsoft Dynamics AX) on a current Enhancement Plan can purchase additional user or module licenses for up to 20% off of Microsoft’s standard list price.

Have you been waiting for the right time, and promotion, to expand your ERP solution?

Now is the time to take advantage with this special “Microsoft Dynamics ERP Holiday Season User Offer”.

What’s more, you only have to purchase a minimum of 2 licenses to be eligible for the discount and the discount can be applied on up to a total of 20 user or module license purchases.

Contact me for all inquiries and interest so we may assist you in this promotion.

Emily Gonsoulin

Client Account Manager

615-665-2545 ext. 121

egonsoulin@kraftenterprise.com

We are thrilled to invite our valued customers to November’s Accelerent Breakfast at Lipscomb University featuring Col. Tillman, former Commander of Air Force One during the attacks on 9/11/2001!

This event is complimentary to all of our clients and thier guests and part of our commitment to bring the best customer experience to you.

 To register, please click here to RSVP for the Breakfast on Thursday, November 10th. We welcome you to invite any co-workers,  employees or guests to this event with us.

Join us Thursday, November 10th for the opportunity to meet 500 of Nashville’s key business leaders in the community and hear from this dynamic speaker. It will be an event, a speaker and a message you won’t forget.

The event is limited to 500 registrants so please sign up quickly to reserve your seat for this event. Registration closes Friday, November 4th.

If you have any questions, please do not hesitate to contact me.

Sincerely,

Emily Gonsoulin

Client Account Manager

egonsoulin@kraftenterprise.com

Office: 615-665-2545 ext. 121

Kraft Enterprise Systems, LLC

Biography on Col. Mark Tillman:

Chosen as the nation’s 12th Presidential pilot, Colonel (ret) Mark W. Tillman served as pilot and commander of Air Force One from 2001-2009. Col. Tillman was at the controls of Air Force One through numerous national events. Most notably, he protected the President on September 11, 2001 by keeping him out of harm’s way and connecting the flying oval office to the nation’s first responders. Another historic event was being the first pilot to fly the Commander-in-Chief into a war zone. The challenge was unprecedented–transport the most targeted man in the world into the heart of terrorism. One mistake would have left the President open to attack and cost the lives of US service members. Col. Tillman personally orchestrated and executed the covert operation with flawless success. His planning, done in complete secrecy, allowed for a complete surprise to the entire world. Col. Tillman’s distinguished career spans 30 years in the United States Air Force. He was awarded the Distinguished Flying Cross in 2004 and promoted to Brigadier General by the President of the United States-the first military line officer to receive this honor. A man devoted to serving his country, this captivating storyteller will give you a first-hand account of remarkable moments in history.

Advanced Bank Reconciliation Training

Save the Date: Join us on Thursday, October 27, 2011 from 10:00 AM – 11:30 AM MST for our Spook-tacular Halloween Complimentary Advanced Bank Reconciliation training and a chance to win one of three Halloween Basket.

Join our expert, Melissa O’Brien and learn how to set up:

• Beginning Balances
• Reconcile Rules
• Deposit Groupings

·        Contact Melissa to sign up and we will send out the GoToWebinar invite.

 SAVE the DATE:

KraftCPAs & Kraft Enterprise Systems host

 Women In Technology of Tennessee’s Monthly Meeting

WiTT Oct. Meeting Tuesday, October 25th
Time: 4:30 pm to 6:00 pm

“Cyber Crime: Threats & Deterrents”

Speakers
Scott Augenbaum, Cyber Crime Supervisor in the FBI Memphis Division
Gina Pruitt, CPA, CISA, CRISC, CQA, CHFP, CEMB 

Every day, criminals invade countless offices across the nation — not by breaking down windows and doors, but by breaking into laptops, personal computers, and wireless devices via hacks and bits of malicious code.

The collective impact is staggering. Billions of dollars are lost every year repairing computer systems hit by such attacks. Some attacks are designed to steal sensitive and valuable information from companies’ databases. Other attacks take down vital systems, disabling the work of businesses around the country.

In 2009, the annual dollar loss due to Internet fraud was nearly double the previous year, and cyber attacks on company databases are increasingly more common. (Source: 2009 IC3 Annual Report)

The FBI’s Cyber Investigations team aims to stop those behind the most serious computer intrusions and the spread of malicious code.

Special Agent Scott Augenbaum from the FBI Cyber Crime Squad and Gina Pruitt, CPA, CISA, CQA, CHRP, CRISC, director of information systems assurance and consulting services with KraftCPAs PLLC, will be addressing the growing threat of cyber crime at the WITT meeting on October 25. Join us to:

• Find out about the most common cyber scams and the latest scams aimed at businesses;
• Learn how to help protect your company’s information assets and reduce your company’s risk of becoming a victim of cyber crime;
• And learn how to file an Internet crime complaint.

Meeting Location: KraftCPAs, 555 Great Circle Rd. Nashville TN 37228 (in Metro Center)

Registration online only, networking at 4:00 pm.

Registration includes light refreshments generously provided by KraftCPAs.

New Microsoft Customers NEW Offer:

1.) Give Me 5 Offer (GP, NAV & SL) :

New customers may be able to license an initial Foundation Pack, including the first user, plus four (4) additional users, for $3,000.

Existing Microsoft Customer NEW Offer:

1.) Microsoft Dynamics ERP License Model Transition (LMT)  (GP, NAV & SL) :

Existing customers who have licensed Microsoft Dynamics GP, Microsoft Dynamics NAV or Microsoft Dynamics SL through Module Based Licensing can transition to Business Ready Licensing for $500* per user with a maximum fee of $25,000*. Customers who have between 1 and 200 users can take advantage of this offer. License Module Transition fees for customers with more than 200 users will be considered on a case by case basis.

Contact Emily Gonsoulin for more information on any promotions or products you are interested in.

egonsoulin@kraftenterprise.com

615-665-2545 ext. 121

For Existing Microsoft Dynamics GP Clients:

1.) Microsoft Dynamics ERP Business Ready Licensing Module Offer (GP, NAV & SL)

2.) Reenrollment Award for Microsoft Dynamics Customers (AX, GP, NAV & SL):

For a limited time, existing Microsoft Dynamics CRM customers with on-premise deployment are eligible to purchase Microsoft Dynamics CRM Online at a discounted price of $39.00 per seat.

This fall, Microsoft will be hosting a series of webcasts exclusively for Microsoft Dynamics® GP customers. These FREE one-hour webcasts include content designed to ensure you have full exposure into how you can maximize and extend your current ERP investment.

Listed below are the details for each event. For more information and to register, please click the associated link.

Learning leads to possibility. Take the first step. Register for these webcasts today. 

Emily Gonsoulin

Account Manager

Kraft Enterprise Systems, LLC

Phone 615-665-2545 x 121  | Cell 225-803-4838

^{Learn More: Web|LinkedIn|Twitter|  Blog}