HELPFUL TIPS!

QuickBooks 2008 and Payroll Tax Expiration

Posted on 2011/02/09 by Chip Majors

After May 31, 2011, QuickBooks (QB) will stop providing payroll tax table updates for any users on QuickBooks 2008.  This means that tax withholding and match computations with go to zero on 06/01/11 if you don�t upgrade to QB 2011.

In general, QB only supports the 3 most current versions of QB (2011, 2010 & 2009).  2008 is currently in the grace period that began in October 2010 when 2011 was officially released.

If you are not using the payroll function, then you are not required to upgrade to 2011 and you can continue to use versions prior to 2009.  However, it is generally a good idea to upgrade every few years to take advantage of improvements to the programs functionality and new features the may enhance productivity.

Travel

Per IR-2011-69, June 23, 2011, the IRS has revised the standard mileage rates.  Effective 7/1/11 the revised mileage rates are as follows:

Business 55.5 cents per mile
Medical and moving 23.5 cents per mile

OTC Medicines and Drugs

Changes Effective January 1, 2011

 What Changed: In March, 2010, Congress passed H.R. 3590, the Patient Protection and Affordable Care Act (PPACA). This Act amended previous legislation in which over-the-counter (OTC) medicines and drugs had been deemed eligible for reimbursement from a Flexible Spending Account (FSA), Health Saving Account (HSA), and Health Reimbursement Arrangement (HRA). The new legislation is very clear: "�reimbursement for expenses incurred for a medicine or drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin."

What Does This Mean to Me?

Effective on January 1, 2011, all medicines or drugs purchased over-the-counter require a prescription or Letter of Medical Necessity from your medical practitioner if the expenditure is to be reimbursed from your Medical FSA. Some examples of these items include the following:

  • Allergy & Sinus Products
  • Antibiotic Products
  • Anti-Itch & Insect Bite Products
  • Baby Rash Ointments & Creams
  • Cough, Cold, & Flu Products
  • Laxatives
  • Pain Relievers
  • Sleep Aids & Sedatives

All OTC health-related supplies continue to be eligible for reimbursement after 12/31/2010 without additional documentation. Some examples include the following:

  • Bandages & First Aid Dressings
  • Blood Pressure Kits
  • Contact Lens Solution
  • Diabetes Testing Supplies
  • Hearing Aid Batteries
  • Hot, Cold, & Steam Packs
  • Insulin
  • Splints, Supports, & Braces