Federal Minimum Wage Rate Increase
As of July 24, 2008, the federal minimum wage rate
increased to $6.55 per hour, up from $5.85. This is the second of three
increases provided for by the enactment of the Fair Minimum Wage Act of
2007. A third minimum wage increase to $7.25 per hour becomes effective on
July 24, 2009. Indiana minimum wage laws follow the federal rate, but many
states have minimum wage laws with provisions that differ from the federal
law. To find out about applicable minimum wage laws for your state, visit
the
U.S. Department of Labor's website.
IRS Increases Optional Standard Mileage Rates for Second Half of 2008
In recognition of increasing gasoline prices, the IRS has announced an
increase in the optional standard mileage rates for the second half of 2008.
The standard mileage rate for business miles driven from July 1, 2008
through December 31, 2008, will be 58.5 cents per mile, an increase of eight
cents over the rate for the first half of the year. The standard mileage
rate for medical and moving expenses has been increased to 27 cents per mile
from 19 cents per mile. The standard mileage rate for charitable purposes,
however, remains unchanged at 14 cents per mile.
Wherewithal
is provided by Somerset for our clients and other interested persons
upon request. Since technical information is presented in generalized
fashion, no final conclusion on these topics should be made without
further review. For additional information on the issues, please
contact
a member of the firm. Somerset provides total financial solutions,
including accounting, assurance, information solutions, litigation &
valuation, tax, wealth management and management consulting services to
entrepreneurs and their businesses. This document is not intended or
written to be used, and cannot be used, for the purpose of avoiding tax
penalties that may be imposed on the taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
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