To help in preparing your company's financials for 2011, here is a breakdown of changes for the coming year. Please visit The IRS website for more information.

On December 17, 2010, the IRS released information on 2011 payroll tax cuts. For 2011, the employee tax rate for social security is 4.2%. The employer tax rate for social security will remain unchanged at 6.2%. Employee and Employer Medicare tax will also remain unchanged at 1.45%. While the Circular E 2011 tax tables are not released yet, the percentage method for calculating tax withholding has been released by the IRS and can be found in Notice 1036.

Although the IRS has given employers until January 31, 2011 to put the 4.2% social security tax rate into place, Nextep has already made necessary changes to ensure that all clients and employees will receive the 4.2% tax rate on the very first payroll of 2011 with no delays.

Below are the bank holidays that will be observed in 2011. Nextep will be unable to process any payroll on these days. Please make arrangements with your Payroll Account Manager if your pay date falls on one of these days.