New Jersey Tax Changes For 2011
For the 2011 fiscal year, New Jersey faces great economic challenges
. Due to a faltering economy, a national recession and New Jersey's own weak revenues, all have attributed to its fiscal results, which has produced a little over a ten billion dollar deficit. For a path of sustainability and correction, New Jersey is planning to attract and retain businesses to help stabilize its tax base. Plans also include implementing new taxes on out of state owned businesses and taxation on non residents.
The new proposed 2011 tax changes begin with estate taxes, which will continue to be subject to taxation. The estate tax will be subject to the 2001 rates of 55% for a million dollar exemption. A New Jersey state estate tax law, will be imposed on assets over six hundred thousand dollars, that are left to a non-spouse. A former New Jersey corporate, business tax credit for film production companies, will be eliminated in fiscal year 2011.
Small businesses which operate as an S corporation in 2011 will be paying more income taxes on their income. S corporation shareholders may have to pay a higher income tax rate. Many S corporations will consider filing as a C corporation. S Corporation payroll departments and payroll companies see this as a taxation disadvantage.
Payroll tax exemptions for businesses are also a part of fiscal year 2011. There are two payroll tax laws for employers, which affect their portion of social security taxes on employee wages. In addition, businesses will have to work with the paperwork of being eligible for the new hire retention credit. But the portion of the Medicare taxes for employers and employees would not change.
With these proposed 2011 tax changes and others, small and large businesses throughout the state would greatly benefit by outsourcing to a New Jersey payroll company. Outsourcing payroll companies can customize the paperwork that will be required with all the new 2011 tax changes. Outsourcing companies can handle direct deposits and take care of all payroll needs, ensuring accurate and reliable results.
With outsourcing payroll firms, there are no more late or inaccurate filings which result in penalties. Payroll outsourcing helps take the responsibility of acting on a company's behalf for all tax filings for federal, civil and state responsibilities. Many payroll outsourcing companies guarantee to be responsible for all fees or penalties, if any errors occur as a result of their actions.
by: Rob Barker
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