FEDERAL UNEMPLOYMENT TAX (FUTA)
Missouri employers no longer face a cutback in the 5.4% FUTA tax credit. In 2009 Missouri became one of many states that received a loan from the U.S. Treasury when its trust fund became insolvent. Missouri has retired its debt obligation thereby lowering the federal tax burden on Missouri businesses. In 2013 employers paid up to an additional $63 ($7,000 x 0.009) per employee in FUTA taxes.
Social Security benefits are expected to increase 1.7% in 2015. That is approximately $22 per month for a typical retiree. Benefit statements are once again being mailed out. These mailings were suspended in April 2011 to save money. They will now be mailed out once every five years starting at age 25. After age 60 workers will receive the statements annually.
TRUNCATED TAXPAYER IDENTIFICATION NUMBERS
The Internal Revenue Service (IRS) has issued final regulations allowing truncated taxpayer identification numbers (TTIN) to be used on payee statements. The TTIN can be used in place of a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN), or Employer Identification Number (EIN). The TTIN will only display the last four digits of the identification number with either asterisks (*) or X’s replacing the first five digits.
The TTINs are allowed to be used on information returns such as Forms 1098, 1099, and 5498. The TTIN may only be used on the payee’s copy of the information return, not the filing copy to the federal or state government. The TTIN may not be used on the payee’s copy of the Federal Form W-2. The use of TTINs is voluntary and can be used on electronic as well as paper filings.