On February 17th, 2009, President Obama signed a $787 billion economic stimulus plan known as the American Recovery and Reinvestment Act of 2009 (ARRA). This plan is designed to spur economic growth in the U.S. - with impacts for payroll and benefits administration (Click
here to visit the IRS website for more details):
- "Making Work Pay" Credit: A tax credit for workers' administered through payroll, starting April 1st, 2009. The IRS asks that employers calculate federal withholding and advance earned income credit payments with new tables just issued as soon as possible, but no later than April 1st 2009.
- COBRA Premium Assistance Payments: Some employers will also be affected by new provisions to provide a subsidy of COBRA health insurance premiums to employees who involuntarily lose their jobs. These COBRA provisions begin to take effect as of the date of the ARRA enactment, February 17, 2009.
Intuit is keeping abreast of these changes and working hard to ensure that customers are prepared. Our customers regularly receive the latest tax table updates, delivered several times a year, to ensure that they stay compliant. This is the core of our payroll service and isn't going to change, no matter what new economic regulations may be enacted.