New Tax Regulations Impose Payroll Changes for All
Online, December 20, 2010 (Newswire.com) - Paycom's Software Will Be Updated and 8,000 Customers Ready by Jan. 1
A two percent reduction in the employee social security tax rate is just one of the payroll changes from the recent passing of H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010). Employers across the nation are working feverishly to make all the necessary updates in their payroll systems to insure their employee's pay checks reflect all the changes by January. In addition to the Tax Relief Act, the IRS also released Notice 1036, which contains the percentage method tables for federal income tax withholding from wages paid in 2011, also impacting calculations on payroll.
Since the regulations were issued on Friday, December 17, Paycom, an online payroll service provider headquartered in Oklahoma City, has been working around the clock to update their payroll software with all the new changes.
"We were following the bill very closely and were at the gate ready to get to work at the first possible moment," explained Chad Richison, Paycom CEO. "We know our customer's employees will be looking for those changes on their first pay checks of the new year. We are thrilled to report that all 8000 Paycom customers will be ready without having to do anything on their end."
Because Paycom develops their own software, they were able to make all the necessary changes immediately, without downtime or interference on the customer end. Paycom's online deployment allows every customer to be seamlessly updated to the most current version. The only people who will actually experience any changes are the employees who will see an increase in their take home pay.
Every payroll department is affected by these recent changes and all changes become effective as of January 1, 2011. Companies have until the end of January to implement the changes but if they wait, they have to retroactively credit their active and terminated January employees. Employers not using Paycom need to be contacting their payroll software vendors to get software updates when they become available.
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Tags: payroll, Payroll Services, tax rate