Tax cuts from the Bush administration are set to expire at the end of 2010. Congress could pass a partial or full extension of those cuts before year-end, but employers must adjust their payroll software for 2011 well before the end of 2010, reports the Society for Human Resource Management.
This could mean that employers may have to adjust their payroll software systems in anticipation of no extension, but then readjust them if Congress acts to extend the cuts, so SHRM advises that employers stay in the know about the newest law information.
According to the Washington Post, many analysts favor letting the tax cuts expire because they were put in place during a booming economy and the country now faces an increasing national debt. The tax cuts were signed into law on June 7, 2001, by George W. Bush. No matter what happens, it is important for employers to keep their employees informed, cites SHRM.