In observance of the upcoming Thanksgiving holiday, PAYDAY-USA will be closed for business on Thursday and Friday, November 23^rd and 24^th, 2006. In addition, Thursday, November 23 is a banking holiday. Accordingly, clients that pay by Direct Deposit and/or Positive Pay must transmit their payroll information in accordance with the following chart in order to ensure that funds will be available on the desired date.

Check Date	by Noon (E.S.T) on:	Funds Available on:
Wednesday, Nov. 22	Monday, Nov. 20	Wednesday, Nov. 22
Thursday, Nov. 23	Tuesday, Nov. 21	Friday, Nov. 24
Friday, Nov. 24	Tuesday, Nov. 21	Friday, Nov. 24
Saturday, Nov. 25	Wednesday, Nov. 22	Monday, Nov. 27
Sunday, Nov. 26	Wednesday, Nov. 22	Monday, Nov. 27
Monday, Nov. 27	Wednesday, Nov. 22	Monday, Nov. 27
Tuesday, Nov. 28	Wednesday, Nov. 22	Tuesday, Nov. 28

Delivery on Friday November 24, 2006.

All payrolls processed on Wednesday, November 22, 2006, will be sent out for delivery on Friday, November 24. If you will not be open on Friday to receive your payroll package and you prefer it be delivered on Monday, November 27, please inform your Customer Service Representative upon the submission of your payroll information. This will prevent you from incurring a redelivery fee that is imposed by our courier services

If you normally would date your checks for Friday, November 24^th, but you want them dated Wednesday, November 22^nd, please call us to change!

2006 Holiday Schedule

The following remaining holidays are in effect for 2006. The official “bank holidays” are marked with an “*”

· November 23^rd* thru 24^th – Thanksgiving Holiday – Payday-USA will be closed

· Monday, December 25, 2006* – Christmas Day – Payday-USA will be closed

· Monday, January 1, 2007* – New Year’s Day – Payday-USA will be closed

Free Ongoing Training and Support

At PayDay USA, we pride ourselves on delivering exceptional service and we look forward to building a strong relationship with your company. That is why we provide ongoing training and support on all aspects of your payroll processing.

The sessions cover areas such as starting the payroll process, creating and editing an employee, starting and printing out a manual check, creating third party checks, etc. We also cover reports creation, editing, exporting to Excel, Word, Adobe, and much more.

Please reserve your spot as soon as possible by completing the Training Registration, as the sessions have limited space.

Also if you would like to see what's coming soon for our online training's please click this link and you will see the new upcoming training videos that we will be offering. Use the "Training Class Schedule" link to the right for additional information and to sign up. M3 Training Videos

Changes for 2007: Various taxing agencies have announced the following

· Social Security Wage Base increases to $97,500 from $94,200 in 2006. This makes the maximum a taxpayer can accrue in Social Security taxes for 2007 $6,045.00, up from $5,840.40 in 2006.

· The Social Security tax rate will remain at 6.2% and the Medicare tax rate will remain at 1.45% for 2007. Again, as in previous years, there is no wage limit for Medicare.

· 401(k) deferral limit has been raised to $15,500, a $500 increase from 2006. The dollar limit for catch-up contributions stays at $5,000, the same as 2006.

· SIMPLE retirement account deferrals increase by $500 to $10,500.

· The standard mileage rate for 2007 will be 48.5 cents per mile for business miles driven. The standard mileage rate for the use of a car for charitable purposes will remain at 14 cents per mile in 2007.

· Governor Arnold Schwarzenegger signed the minimum wage bill on September 12, 2006, giving California the highest statewide minimum wage in the country. The bill increases the state’s minimum wage rate to $7.50 per hour on January 1, 2007 and to $8.00 per hour on January 1,2008.

Effective 01/2007 $7.50

Effective 01/2008 $8.00

· The qualified transportation fringe benefit for parking in 2007 increases $10 to $215 per month, and the transit pass exclusion increases $5 to $110.

· The adoption expense exclusion for qualified employer plans increases to $11,390 in 2007, up from $10,960 this year.

· The 2007 standard deduction for married couples filing a joint return will be $10,700, for singles $5,350, and for heads of households $7,850.

New Information

2006 YEAR-END TAX NEWSLETTER

Year-end packages will be mailed out later this month for your review. However, it’s not too early to begin auditing your employees’ personal information. Correct names, addresses and Social Security Numbers will prevent the expense and inconvenience of reprinting W-2’s later.

OPTIONAL SERVICES

PAYDAY-USA is anxious to provide you with continued support and the tools you need to effectively fulfill your payroll and human resource needs. Below is a short-list of some of the additional services available to you. For more information on the many services available, please contact your PAYDAY customer service representative. Thank you for allowing PAYDAY-USA to serve you.

* Direct Deposit
* Laser Check Signing
* Customized Reports
* Employee Kiosk (Online Check Stubs and More)
* Employee Background Screening
* Unemployment Tax
* Management Service
* Garnishment Service
* Debit Cards
* Time and Attendance Solutions
* Workers Compensation Reporting and Payment Service
* New Hire Reporting