November 2008

New Business

FUTA surtax extended for a year

11/1/2008 -

The Federal Unemployment Tax Act (FUTA) imposes a 6.2% tax on the first $7,000 of wages paid annually to employees. Years ago, a .2% surtax was added as a "temporary" measure; this "temporary" surtax was set to expire after 2008.

The recently passed Emergency Economic Stabilization Act of 2008 extends the surtax through 2009. The extension of the surtax will, according to the Treasury Department, "support the continued solvency of the federal unemployment trust fund."



Before you invest in any business, it's always a good idea to discuss the proposed venture with your advisors. If you would like assistance with evaluating a business opportunity or with legitimate tax planning, please call our office.