GTM Household Help BLOG

Mileage Rate Update

IRS Increases Mileage Rate for remainder of 2011 

(An excerpt from IRS.gov)

(June 23, 2011)  WASHINGTON — Earlier today the Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2011. According to IRS Commissioner Doug Shulman, the adjustment to the standard mileage rates is prompted by this year’s increase in gas prices. 

The rate will increase 4.5 cents to 55.5 cents a mile from 51 cents for all business miles driven from July 1, 2011, through Dec. 31, 2011.  

Typically, the IRS updates the standard mileage rates once a year; historically in the fall for the next calendar year. In acknowledgment of recent gasoline price increases, Shulman noted, "We (IRS) are taking this step so the reimbursement rate will be fair to taxpayers."

While gasoline is a significant factor in the mileage figure, other items such as depreciation and insurance and other fixed and variable costs, were contributing factors in the calculation of mileage rate increase.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses also increases by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011.  However, the rate for providing services for charitable organizations is not set by the IRS, and remains at 14 cents a mile.

For more information on the new rates, please visit the IRS Newsroom or see Announcement 2011-40 on the optional standard mileage rates.

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At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!

The items included in this update are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult GTM for more information and to determine how any item may apply to your personal tax scenario.

~ Update ~ The New York Metropolitan Commuter Transportation Mobility Tax

On September 29th, The NYS Department of Taxation & Finance confirmed that the new employer-paid Metropolitan Commuter Transportation Mobility Tax (MCTMT) is NOT REQUIRED for DOMESTIC EMPLOYERS!!

The New York MCTMT is imposed on certain employers and self-employed individuals engaging in business within the metropolitan commuter transportation district. This new law applies to:

• employers (other than public school districts) beginning on or after March 1, 2009
• employers that are public school districts within the metropolitan commuter
• transportation district beginning on or after September 1, 2009
• self-employed individuals for tax years beginning on or after January 1, 2009

The Metropolitan Commuter Transportation District (MCTD) is defined under section 1262 of the Public Authorities Law.  The MCTD includes New York City (the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island)), and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.

The NYS Department of Taxation & Finance has not yet issued a publication regarding this information.  However, additional information on the requirements and procedures for the MCTMT will be made available on the Tax Department's Web site as they are developed.

The NYS Dept of Taxation & Finance has recently published new MCTMT frequently asked questions (FAQs).  To read the FAQs and get more information about this tax, click here.

*Please Note: If you receive any notices from NYS regarding the MCTMT, please e-Fax them to GTM's Tax Department at (518) 836-2497.

If you have specific questions on your tax obligations, our Tax Department and Client Service Representatives are available to assit you by calling (800) 929-9213, or by visiting GTM.com to Chat Live!

For a list of all reporting and filing deadlines, please click here to refer to GTM's online tax calendar.

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At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!

The items included in this update are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult GTM for more information and to determine how any item may apply to your personal tax scenario.

Take your nanny on your vacation

The mid-winter school breaks are here, and people are planning vacations to escape these winter blues.  Many families travel with their nannies.  If you have a nanny, and feel that taking them along on the trip will be a benefit to you, remember that for them, this is work.  They should still be able to have their off hours, so that they can enjoy some relaxation as well.  But for the 40 or so hours a week that they are watching the children, they are working.  Being respectful of their time, making the arrangements for expenses ahead of time and discussing both of your expectations and boundaries will save a lot of confusion and will make the whole trip a more relaxing experience for everyone.  For more information about household help and human resources, contact the household employment experts at www.gtmassociates.com. 

Family Vacations with the Nanny

The holidays are over and a new year has started.  One of the things that many families consider, especially here in the wintry Northeast, is taking a vacation to warmer climes.  While family vacations are wonderful, many parents have difficulty balancing their time as a family with the time they would like to have as a couple.  One way to have that balance and freedom is to take your nanny along for the trip.  If you have a nanny who is able to go with you, be sure to remember that although this is your family vacation, it is working time for your nanny.  Include a generous payment for her time, along with the travel expenses.  Having an extra adult to watch the children, and getting the “date” time with your spouse, can be well worth the extra expense.  For more information on human resources and for all your household employment needs, contact the experts at www.gtmassociates.com.