Going Up

You have heard of Secretary's Day, no doubt. That's what people used to call administrative assistants. What about National Boss Day? Or Teacher's Day? National Teacher Appreciation Week? Well, guess that this week is. It's National Payroll Week.

Yes, this glorious holiday adds luster to the September calendar, as if Labor Day wasn't enough! And to help you celebrate, the folks the American Payroll Association would like to share some news with you. It's not exactly happy news, but it's something they think you ought to know. Your payroll taxes are going up next year.

In 2001 and 2003, Congress enacted payroll tax cuts, which are due to expire. If they do, it means higher taxes in 2011, according to their report.

Let's hear the bad news first.

• The 10-percent tax bracket will be eliminated and the first $8,375 of taxable income of a single filer will be taxed at 15 percent.
• The tax credit for children will be cut by 50 percent to $500 per child.
• "The tax cuts reduced the tax burden on married couples by increasing their standard deduction to exactly twice that of a single person and increasing the amount of income subject to the 10-percent and 15-percent taxes to exactly twice that of a single person. These equalizers will disappear if the cuts expire. "
• The supplemental tax rate, which applies to bonuses, commissions and the like, will rise to 28 percent from 25 percent.
• Many tax rates will rise, with the top rate going to 35 percent to 39.6 percent.
• "Non-job-related educational assistance will no longer be a tax-free benefit."

And now the good news. It's still 2010.