PayCyle said that it has implemented the payroll tax reduction included in the recently passed economic stimulus bill.
The payroll service noted that the Making Work Pay refundable tax credit will lower the federal income tax for most employees and give them a bit more in their paychecks. The tax credit translates to up to $400 per year for individual taxpayers and $800 for married couples, giving individuals about $15 extra in their biweekly paychecks and couples about $30. The tax credit phases out for taxpayers with adjusted gross income over $75,000, or $150,000 for married couples filing jointly.
PayCycle said that there is no additional charge to existing customers to enable the tax credit and it requires no change to their service. Paychecks are automatically calculated using the new stimulus package tax rates. Accountants can sign up new small-business payroll clients at www.paycycle.com and run paychecks for them the same day.
“Our goal at PayCycle is to make it simple and easy for any accountant serving small-business clients to handle payroll accurately,” said PayCycle senior regulatory manager Tina Korabiak in a statement. “We update the service continuously to reflect important changes.” She added that the company worked with the Internal Revenue Service on readying the changes.
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