From the January/February 2009 issue of Ceridian Connection

The financial crisis of 2008 has underscored the need for employers to communicate clearly with their employees about personal income tax filing. For instance, an employee might have a spouse who received a severance package or unemployment compensation in 2008. Employees who want to save more may want to take action to adjust their Forms W-4 for 2009. Employees who didn't qualify for the government's 2008 Economic Stimulus Payment may be entitled to a Recovery Rebate Credit when they file their 2008 tax return. With so many changes and so much complexity in people's lives, there's never been a better time to deliver helpful information.

Important decisions "when every dollar counts"
Help your employees get the information they need to make the right decisions at tax time. Encourage them to organize their tax records to reduce stress in the first quarter of 2009. And help them take advantage of professional tax advice that can make a real financial difference for them and their families.

"When every dollar counts," says Susan McNew, Ceridian strategic alliance manager, "your employees can find real benefit in professional counsel that saves them money and positions them to make the most of changing circumstances. The IRS says that the average refund among individual taxpayers last year through April 2008 was $2,383. That's a month's take-home pay for many people. So tax time is opportunity time -- if your employees have the ability to make informed decisions."

Informed decisions for challenging times
Professional tax services can make a real difference for individuals who have come face-to-face with new economic realities. The best providers focus on serving individuals, have a large and established base of business and have found an effective way to collect information that delivers efficient and accurate tax returns.

These organizations follow regulatory developments closely -- to the benefit of taxpayers who need informed counsel. For instance, the Internal Revenue Service suggests individuals might make use of the following recent tax law changes for 2008:

Recovery rebate credit. If you did not qualify or did not receive the maximum amount for the 2008 Economic Stimulus Payment, you may be entitled to a Recovery Rebate Credit when you file your 2008 tax return.

Real estate tax deduction. There is an additional standard deduction for those who don't itemize their deductions, but do pay real estate taxes. The additional deduction amount is equal to the amount of real estate taxes paid up to $500 for single filers or up to $1,000 for joint filers. This deduction is available for the 2008 and 2009 tax years and increases your standard deduction.

First-time homebuyers tax credit. First-time homebuyers should begin planning now to take advantage of a new tax credit available for a limited time. The credit applies to primary home purchases between April 9, 2008, and June 30, 2009. Normally, this tax credit must be paid back in equal payments over 15 years. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly.

Tuition and fees deduction. You may be able to deduct qualified tuition and required enrollment fees up to $4,000 that you pay for yourself, your spouse or a dependent.

Ceridian partners with Jackson Hewitt Tax Service to offer discount program If you are Ceridian customer, your employees can take advantage of discounted tax preparation services. Jackson Hewitt, which had approximately 6,800 offices throughout the United States during the 2008 tax season, is an industry leader that provides full-service individual federal and state income tax return preparation. Ceridian has partnered with Jackson Hewitt to help you bring real relief to employees who need real help. "For most people, their tax return is their most meaningful financial transaction of the year," says David J. Kraut, Jackson Hewitt vice president for corporate relations and alliances. "And especially in today's economic climate, they need guidance they can trust. Hard-dollar discounts get people motivated, so for several years we've offered these types of discounts to Fortune 500 companies. Now, thanks to Ceridian, we can offer these discounts to their midsized customers." Act now to help your workforce at tax season -- and beyond. Ceridian customers can access coupons on the SeeMyW2 Web site. Find out more about Ceridian's W-2 Services.