Mangrove Tree's Company 2006 Edition, Issue 4

2007 Rules

for State Withholding Allowance Forms

Best Use-of-CRM Practices

Best Use-of-CRM Award Winner Announced

2007 Rules

for State Withholding Allowance Forms

2007 Minimum Wage Rates

2007 Mileage Rates

2007 Mileage Rates

LETTER FROM THE PRESIDENT I would like to extend our thanks to all of the Mangrove users who participated in Mangrove's 2006 User Conference in Clearwater, Florida. Participation in Mangrove user group events is essential since we rely on these events as a primary venue for communicating Mangrove's future software usability and enhancement plans. I am pleased to announce the hiring of Holly Cerullo, Jennifer Keller, Zac McCormick, and Louie Salgado. Holly and Jennifer join our Consulting team, while Zac and Louie join our Development team. We are very excited to bring their skills and expertise to our organization. In addition to our newest employees, we would like to welcome these new Mangrove clients: Advanced Payroll Consultants, Ascend Global, America OnShore, Chronicle Books, Corporate Benefit Strategies, HR One, Douglas County (Washington), Illinois Casualty Company, PRPlus, RapidChex, Ragazzi's Restaurant, Second Image, and Washington County (Oklahoma). Photo of the Luau at the 2006 User Conference	If you thought that this year with Mangrove was great, look for even more in 2007!			Clearwater, Florida. Mangrove Software's 2006 User Conference

	Happy holidays and happy New Year to all from Mangrove Software! Richard Cangemi President, Mangrove Software

		Inside This Issue
		1	Letter from the President
		2	Best Use-of-CRM Practices Best-Use-of-CRM Award Winner Announced
		3	Year-End Preparations
		4	2007 Rules for State Withholding Allowance Certificates
		5	2007 Minimum Wage Rates
		6	2007 SUI and Disability Taxable Wage Bases

Year-End

Preparations

By Lori Krucki, CPP

Every year, Mangrove Software releases an update package that includes updated year-end reports, including W-2 reports in January. This allows Mangrove developers to include changes made at the last minute by federal and state governments.

End-users that have full service packages will have all updates and their W-2s and 1099 Forms supplied according to their service agreements. The designated contact will be asked to review year-end reports prior to the printing and delivery of the employee W-2 and 1099-MISC forms.

Outsourcers and end-users with systems maintained at their own sites complete their own year-end processing, and print their own W-2 forms and reports.

The 2006 Year-End Processing Guide will be released in the concurrently with the January update and will be available from the F.A.Q. in the online CRM.

2007 Federal Payroll Rates and Bases

Rate or Base	2007
Social Security rate	6.20%
Medicare rate	1.45%
Social Security wage limit	$ 97,500
Medicare wage limit	Unlimited
FUTA taxable wage base	$ 7,000

Retirement Plan Limits

Qualified Retirement Plans	2006	2007
Pretax contributions for 401(k), SEP plans, and 403(b) Workers aged 50 or over (catch-up)	$ 15,000 5,000	$ 15,500 5,000
Sec. 415(b)(1)(A) defined benefit plan annual benefit ceiling	175,000	180,000
Combined employer/employee pay-in limits for all defined contribution plans	44,000	45,000
Annual compensation limit under Sec. 401(a)(17) and Sec. 404(1)	220,000	225,000
Sec. 408(k)(3)(C) IRA, SEP or SIMPLE plan limits	220,000	225,000
SIMPLE pretax contribution limit Workers aged 50 or over (catch-up)	10,000 2,500	10,000 2,500

Fish Foibles

By Leila Woolheater, Technical Writer

Tree's Company Newsletter – Page 3

By Lori Krucki, CPP

More than 40 states require state income tax withholding. Many states accept the federal W-4 for state income tax withholding, but those states with different exemptions may require that you use the state form.

Of the 23 states that accept the federal W-4 for state income tax withholding, nine encourage use of the state form: AR, CA, GA, MA, NJ, NY, VT, WV and WI. Pennsylvania has no withholding form because its state income tax must be withheld at a flat 2.8% of gross wages.

Tax Filing Status Changes

Select the tax filing status and enter the number of exemptions on the Compensation tab and/or tax detail record.

Clearwater, Florida. Mangrove Software's 2006 User Conference

State	State Form	Accepts Federal W-4
Alabama	A-4	No
Arizona	A-4	No
Arkansas	AR4EC	Yes
California	DE 4	Yes
Colorado	N/A	Yes
Connecticut	CT-W4	No
Delaware	N/A	Yes
D. C.	D-4	No
Georgia	G-4	Yes
Hawaii	HW-4	No
Idaho	N/A	Yes
Illinois	IL-W-4	No
Indiana	WH-4	No
Iowa	IA W4	No
Kansas	N/A	Yes
Kentucky	K-4	No
Louisiana	L-4 (R-1300)	No
Maine	W-4ME	No
Maryland	MW507	No
Mass.	M-4	Yes
Michigan	MI-W4	No
Minnesota	N/A	Yes
Mississippi	89-350	No
Missouri	MO W4	No
Montana	N/A	Yes
Nebraska	N/A	Yes
New Jersey	NJ-W4	Yes
New Mexico	N/A	Yes
New York	IT-2104	Yes
N. Carolina	NC-4	No
N. Dakota	N/A	Yes
Ohio	IT-4	No
Oklahoma	N/A	Yes
Oregon	N/A	Yes
Rhode Island	N/A	Yes
S. Carolina	N/A	Yes
Utah	N/A	Yes
Vermont	W-4VT	Yes
Virginia	VA-4	No
W. Virginia	WV/IT-104	Yes
Wisconsin	WT-4	Yes

○ Business – 48.5 cents ○ Relocation – 20.0 cents

○ Medical – 20.0 cents ○ Charitable – 14.0 cents

Tree's Company Newsletter – Page 4

Best Use-of-CRM Practices

By Bob Mills, CFO

With the holidays comes the busiest time of year for all of us at Mangrove. Not only are we busy preparing Federal and State compliance updates to be ready for January delivery, but we are also handling our peak volume of customer service. Here are some suggestions to maximize your Mangrove customer service experience.
1) F.A.Q.
Review Mangrove's knowledge base that is available from the F.A.Q. tab in the online CRM (Customer Relationship Management) system prior to establishing a customer service request. This information resource is very helpful in resolving many common customer service issues.
2) Use the Online CRM
Always log your customer service request in the CRM. This quick and easy step enables Mangrove staff to properly research your request and provide an answer without taking up your valuable time.
3) Include Details
Include an appropriate amount of detail in your customer service request that includes the client name, payroll, and employee number. Explaining what you've done in an attempt to resolve your concern will assist us in researching and resolving your issue.
Updating a question through the online CRM item records the complete history of the item and improves the customer service experience.

Best Use-of-CRM Award Winner Announced

Mangrove Software Support is pleased to announce that the Best Use-of-CRM Award has been awarded to One Source Payroll for their professional, courteous attitude and for always responding by updating an item in the CRM instead of sending an email.
One Source Payroll will be receiving a gift box containing pears, apples and assorted cheeses courtesy of Mangrove Software.

Here's how.
A. Go to the "My Stuff" tab in the CRM.
B. Click on the question and the "Update Question" button. Enter your notes or your response,
C. Click on the "Submit Update" button.
4) Separate Items
If you have multiple issues, separate them into different CRM items. Most issues need to be resolved one at a time, and separate customer service requests allow Mangrove to assign your issues to a customer service individual who has specific knowledge of, and understanding of, your issue.

Tree's Company Newsletter – Page 2