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December 2009 - January 2010 Vol.46 No.6 Recent Newsletters

Current Newsletter Articles

Maryland Unemployment Insurance Tax Set to Triple for Businesses

The state’s unemployment insurance tax will more than triple — at a minimum — for Maryland businesses come Jan. 1, the Department of Labor, Licensing and Regulation said Thursday.
Nonprofits and companies that have not laid off anyone in recent years will be billed $187 per employee, up from $51 per employee this year, said Liz Williams, a spokeswoman for DLLR. The tax could be much heftier for Maryland employers that have let workers go in the past three years, as mandated by state law.

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Cash for Clunkers Program

WASHINGTON — The Internal Revenue Service today announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2010. Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Commissioner annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under Section 415. Under Section 415(d), the adjustments are to be made pursuant to adjustment procedures which are similar to those used to adjust benefit amounts under Section 215(i)(2)(A) of the Social Security Act. The limitations that are adjusted by reference to Section 415(d) will remain unchanged for 2010. This is because the cost-of-living index for the quarter ended September 30, 2009, is less than the cost-of-living index for the quarter ended September 30, 2008, and, following the procedures under the Social Security Act for adjusting benefit amounts, any decline in the applicable index cannot result in a reduced limitation. For example, the limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) will be $16,500 for 2010, which is the same amount as for 2009. This limitation affects elective deferrals to Section 401(k) plans and to the Federal Government’s Thrift Savings Plan, among other plans

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Legislative Update

The 2010 Session of the Maryland General Assembly will commence on January 13, 2010 and will adjourn on April 12, 2010. What can we expect from this last Session before the general election the following November? Which issues will dominate the debate of Maryland lawmakers? Are there issues which may have a particular impact on the accounting industry?

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Health bill to include ‘opt-out’ public option

The Senate will vote on a health care reform bill that will include government- run plans in new insurance exchanges, unless states choose not to offer a public option. Senate Majority Leader Harry Reid announced Monday afternoon that he had decided to include a public option, with a state opt-out provision, after consulting with Democratic senators and the White House. There is “strong consensus to move forward in this direction,” Reid said. The public option is “not a silver bullet,” but it will ensure competition in the health insurance market, he said.

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Maryland Society of Accountants, Inc. 526 Baltimore Blvd. Westminster, MD 21157
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