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P.C. Productivity
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Michael Ericksen P.C. |
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Greetings!
Please continue to enjoy our newsletter each month. We value your feedback so feel free to respond.
We try to include valuable information that pertains to you, your business, the time of year, or the products we support. Read more about us in the articles below.
Thank you!
Sincerely,
 Michael Ericksen P.C.847-605-1590www.me-pc.com Michael Ericksen |
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Smaller Paycheck?
By now, if you live and work in Illinois, you have probably noticed that your paycheck is a little smaller than last month. Why? Normally every year you have a very small increase in take home pay in January. That is because the value of a payroll withholding allowance and the tax brackets are indexed for inflation. This year we also have less social security withholding. Previously 6.2% of your wages up to $106,800 was taken from your paycheck. This year it is 4.2% up to $106,800. That 2% increase in pay lasted almost a week, until the State of Illinois increased the state income tax rate by 2%. You would therefore think you would be breaking even, but in 2009 and 2010 there was a make work credit. That credit has expired so you should now see that your take home pay should be less by between .5 and 1%.
The decrease in social security withholding does not impact your employer. The employer still pays the 6.2% rate. Also, the decrease does not impact your social security benefits. It just creates a larger problem for our children and grandchildren. |
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Dates to Remember
 February 2nd- Groundhog Day February 14th- Valentines Day
February 21st- Presidents Day
March 12th- Rotary Classic
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About Us - MEPC
We tailor your business ERP, Accounting, and CRM software solutions. We listen and learn about you and your business needs and help your organization access the data needed to be efficient and effective. Michael Ericksen P.C. helps you determine the value of solving your problems. We do this by tailoring the software solution and support system we propose and integrate for you.
If your accounting system does not provide the information you need to run your business in an efficient and effective way, perhaps now is the time to do a software business review and see what needs are not being met. Call us to schedule your FREE review today.
Sincerely, 1515 E. Woodfield Road Schaumburg, Illinois 60173 847-605-1590 Michael Ericksen
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Health Care Reform
One way the Health Care Reform bill was going to save money is by a new rule on 1099 reporting by companies. Starting in 2012 companies will have to send a 1099 to every company they do business with, even if that company is incorporated. There has been talk that this part of the bill will be repealed, but so far that is not the case. To protect yourself, you should be starting to gather tax payer IDs for any company that you pay $600 or more. These businesses include your local office supply company, the landlord you pay rent to, and even the phone company.
Why was this included in the bill? The IRS estimates that the government loses over $300 billion in tax revenue due to unreported income. An expanded 1099 reporting system may be able to help reduce that number.
If this is not repealed it will be very cumbersome to comply with this law. If there are any changes in the law we will keep you informed.
Michael Ericksen |
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Community Corner
Rotary Club of Schaumburg-Hoffman Estates
2011 Rotary Classic
March 12th, 2011
The 32nd Annual Rotary Classic Gala is the premier fund raising event of the year for the Schaumburg/Hoffman Estates Rotary Club. The money raised will be used to fund our scholarships, provide charitable contributions to our community partners and help fulfill our pledge of $250,000 for the new Children's Hospital at St. Alexis in Hoffman Estates. We need your help to build a stronger community, now more than ever! For more information, or to purchase raffle tickets for our $10,000 grand prize drawing, please visit: www.RotarySweepstakes.com |
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