Payroll/Tax News

September/October 2007


Indiana Notice of County Tax Rates Released, Effective October 1, 2007
The Indiana Department of Revenue (DOR) recently released Departmental Notice #1 on county tax rates, effective October 1, 2007. The new notice reflects a new County Economic Development Income Tax (CEDIT) for Sullivan County as well as rate increases for several other counties. The Indiana DOR had previously released an interim Departmental Notice #1 effective July 1, 2007 with a lone rate increase for Marion County. The most recent notice, which is the last document listed under Sales/Withholding Tax Forms on the Indiana DOR's Web site, has a reference of "(R5/ 10-07)" in the lower right corner.

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Michigan Employee Withholding Tax Increase, Effective October 1, 2007
The Michigan Department of Treasury announced that it has increased its employee withholding rate on taxable income from 3.9 percent to 4.35 percent, effective October 1, 2007. Taxable income is gross income taxable wages less a deduction for exemptions. The annual amount allowed for each exemption is unchanged at $3,400 each.

The increased rate of 4.35 percent also applies to bonus payments on separate checks. However, there is no deduction for exemptions on bonus checks. For complete details refer to the information posted on the Michigan Department of Treasury's Web site.

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Hopkinsville, Kentucky, Occupational License Tax Increase, Effective October 1, 2007
The City of Hopkinsville, which is located in Christian County, Kentucky, increased its occupational license tax by one half of one percent, from 1.5 percent to 2.0 percent, effective October 1, 2007. The city also announced that the tax rate will drop to 1.85 percent, effective July 1, 2009.

The City's occupational license tax applies on gross wages - no deduction for pre-tax deductions.

Authoritative information on this change can be found on the City of Hopkinsville's Web site in its Occupational License Tax ordinance.

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July/August 2007
There were no news updates during this time period.

 

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