Federal efforts to minimize the damage from the economic crisis mean Payroll pros and others in Accounting need to stay on their toes to keep up.

The latest changes are a result of the passage of the Emergency Economic Stabilization Act (EESA). Among the most important:

• FUTA surtax extended– The planned decrease to 6% that was supposed to go into effect on Jan. 1, 2009 has been cancelled. Under the new law, the surtax will be extended through Dec. 31, 2009.
• New transportation fringe benefit  – For tax years starting after Dec. 31, 2008, companies may offer a “qualified bicycle commuting reimbursement” as a fringe. It allows you to reimburse for the purchase, repair and/or storage of a bicycle that is used regularly for travel between the employee’s home and work. (More on this here.)
• Equity for mental health — Group health plans must now provide equity for mental health or substance abuse  benefits. The law takes effect for plan years that begin one year after the date of enactment of the EESA
• Work Opportunity Tax Credits extended — For certain employees working in the disaster area of Hurricane Katrina, the WOTC has been extended through Aug. 28, 2009.

You can see the full text of the law here.

Tags: Benefits, Employment tax, Fringe benefits, IRS, New laws, Tax compliance