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Garden State Payroll Update
Compliance Update

IRS Announces Mid-Year Mileage Rate Increase of 4.5 Cents

The IRS has announced an increase in the optional standard mileage rates for the final six months of 2011 [IR-2011-69, 6-23-11;,,id=240903,00.html]. Citing “recent gasoline price increases,” the IRS has increased the standard business mileage rate from 51 cents to 55.5 cents a mile for all business miles driven from July 1 through December 31, 2011. The rate for deductible medical or moving expenses is increased from 19 cents to 23.5 cents a mile. Note: The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The mileage rate may be used to compute the deductible cost of operating a passenger car (also vans, pickups, or panel trucks) for business purposes. It may also be used by employers to reimburse employees for business use of their personal vehicles and to determine the amount that needs to be imputed to an employee’s income for personal use of certain company-owned or leased nonluxury vehicles.

Mileage Rate Changes



Rates 1/1 through 6/30/11

Rates 7/1 through 12/31/11












Learn more about the tax provisions of President Obama’s 2011 and get aquainted with updated tax laws: For more information, contact Garden State Payroll at  877.898.0415

On March 5 1998, a law was signed by Governor Whitman that requires all New Jersey employers to report basic information about employees who are newly hired, rehired, or who return to work after a separation of employment.  All employers are required to submit New Hire Reports within 15 days of the employee’s first day on the job.  Garden State Payroll can help in keeping you in compliance with the New Hire Reporting Law.  Contact GSP at 877-898-0415 or visit us at our website

1.     Miscalculating payroll: Employers who do their payrolls by themselves are vulnerable to making mistakes while calculating their payroll.  They may not be aware of the
recent tax updates and how to deduct the various taxes properly.  This could lead to paying a huge amount of penalties every time while running the payroll.

2.     Late Tax Deposits: Employers have to be cautious about the numerous deadlines they have to meet for depositing the federal and state taxes.  Different types of taxes have different
filing dates, so employers have to make sure they do not forget about filing the taxes at the right time.

3.     Misclassifying workers:  There are different types of categories that employees come under such as independent contractors, hourly or salary employees.  Classifying an employee with an hourly pay type under salary will cause to inaccurate tax withholdings and tax deposits.

4      Poor record keeping:  When hiring an employee, the employers have to make him fill out numerous forms such as W-4 and I-9.  Misfiling or forgetting to fill out any one of these forms can get your company in trouble during an audit.

5.     Not running payroll on time: Completing a payroll is a strenuous process that utilizes a lot of time and resources. Sometimes, companies either delay their payroll processes or they completely forget to do so.  They are continuously under pressure to complete their payrolls and hence, it is advised to outsource the payroll to more specialized companies such as Garden State Payroll.

Get the latest information about the 2011 Wage and Tax Facts at Garden State Payroll

Issue Number:  2011 – 5

Inside this Issue of the Outreach Corner

The Outreach Corner for May highlights the following drop-in articles: 

  1. Use IRS Withholding Calculator to adjust your withholding.
  2. Looking for a new job? You may be able to deduct costs.
  3. Here’s what every student should know about summer jobs and taxes.
  4. Claim summer day camp and childcare expenses.
  5. Wedding season is in full swing!
  6. Meet the Dirty Dozen — The IRS names the 2011 worst tax scams.

Connect with the IRS through YouTube, Twitter and other social media channels to spread the word about important tax information.

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