To aid in preparing your company's financials for 2012, here is a breakdown of upcoming changes.
|Social Security Wage Base
|Mileage Rate (per mile, business use)
|Maximum 401(k) Contribution
|Catch-up 401(k) Limit for People Over 50
|Federal Minimum Wage (state min wage takes precedence if higher)
|SUTA Wage Base - Oklahoma
|SUTA Wage Base - Texas
The Status of Payroll Tax Cuts
As reported in yesterday's Compliance Alert, Congress has enacted the Temporary Payroll Tax Cut Continuation Act of 2011. This extends the 2011 payroll tax cut through the end of February 2012, which reduces Social Security withholding for employees from 6.2% to 4.2%. The employer rate remains unchanged at 6.2%. Employee and Employer Medicare tax will continue to be 1.45% with no maximum cutoff.
Because Social Security tax withholding is set to return to 6.2% on March 1, 2012, debate in Congress is expected on whether to extend the tax cut through the end of 2012. Nextep will continue to closely monitor the tax and other regulatory changes to ensure compliance.
For additional information, please contact Nextep's HR Department.