Social security and Medicare tax for 2008. Do not withhold social security tax after an employee reaches $102,000 in social security wages. There is no limit on the amount of wages subject to Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $1,600 or more in cash. Social security and Medicare taxes apply to election workers who are paid $1,400 or more.

Disregarded entities and qualified subchapter S subsidiaries (QSubs). The IRS has published final regulations (T.D. 9356) under which QSubs and eligible single-owner disregarded entities are treated as separate entities for employment tax purposes. For more information, see Disregarded entities and qualified subchapter S subsidiaries in the Introduction.

Social Security Administration and magnetic media. Employers and authorized reporting agents requesting verification of names and social security numbers of between 51 and 250,000 employees can no longer use magnetic media to submit their requests to the Social Security Administration. Employers can upload a file through the Social Security Number Verification System (SSNVS) and will usually receive the results the next government business day. For more information, see Verification of social security numbers in section 4.

Substitute Forms W-4. After October 10, 2007, you cannot accept substitute Forms W-4 developed by employees. For more information, see Substitute Forms W-4 in
section 9.