Everyone wants the new administration to do something to end the economic slide. But will the likely courses of action mean more work on your part? It seems likely.

Even before he officially took office, President Obama had outlined several steps he planned to take to stimulate the economy, create jobs and put more cash into people’s pockets.

Some proposed changes will affect businesses directly. But even those that are aimed at the average worker and consumer could significantly affect your work in Accounting. Here are some of the biggest proposed changes — and how they could impact you:

1. Minimum wage increases — by 2011, the federal minimum wage may be increased to $9.50. And some states may further increase their own minimum wages, resulting in more work — and more questions — for Payroll.
2. Expanding the Earned Income Credit — some full-time workers would be eligible for much larger credits. Again, more questions regarding eligibility and claims for Payroll to field.
3. Changing federal withholding rates — The Obama administration wants to reverse most of the Bush-era tax cuts for the highest-income earners, as well as a permanent tax reduction of $500 per person through a change in federal withholding rates and/or a federal payroll holiday. In either case, it’s more calculations you’ll have to make to ensure everyone has the right withholding. And again….more questions from workers when they seen new numbers on their pay-stubs.

Several proposals would also tweak the rules and regulations surrounding popular employee benefits. These changes could have you dealing with more paperwork and having to explain new rules to employees:

• Penalty-free hardship withdrawals from employees’ 401(k) accounts.
• Automatic enrollment in pension plans. If your company doesn’t have a pension plan, it would have to offer an IRA with direct deposit. Employees would be able to opt out of the program.
• Expanded health insurance options. There are several proposals in this area, including a small business health tax credit for providing health insurance benefits, coverage for catastrophic health costs and mandated health care coverage for larger employers.

It’s too soon to say exactly which of these measures will pass — and what their final form will be — as Congress and the President negotiate the various bills pending. But there’s no doubt that some of these changes will be prompting you to make some changes in your department relatively soon.

For more details on the government’s fiscal and tax proposals, click here.

Tags: IRS, Payroll, Proposed legislation, Tax compliance, Withholding