Financial Fitness - Special Edition 2011/12
Special Edition 2011/12 PDF »
Special Edition 2011/12 Articles
- It’s Not Too Late to
Make Major Gifts » - FATCA – Offshore Reporting Developments »
- Pennsylvania Act 32 Update »
- Tax Notices »
- Tax Updates for 2011
and/or 2012 » - Accounting Standards Updates »
- Key Benefit Plan Limits
for 2011 »
- Average Itemized Deductions »
- Individual Income Tax
Rates 2011 » - Putting Together Your Tax Information: The “Short List” for Businesses and Individuals »
- 2012 Wage/Tax Facts Quick Reference Guide »
- Newsletter Summary Page »
2012 Wage/Tax Facts Quick Reference Guide
FEDERAL |
|
| Minimum Wage | |
| Effective 7/24/09 | $7.25 |
| Minimum Cash Wage | |
| Tipped Employee | $2.13 |
| Maximum Tip Credit | |
| Effective 7/24/09 | $5.12 |
| Youth Sub-Minimum Wage | |
| First 90 Days of Employment | $4.25 |
| FICA (Social Security) | |
| Maximum Taxable Earnings | $106,800 |
| Employee/Employer Deduction | 6.20%* |
| Self-Employment Tax | 12.40% |
| *Employee Social Security deduction may remain at the 2011 level of 4.2%, or lower, depending upon future Congressional legislation. The employer deduction will remain at 6.2%. | |
| FICA (Medicare) | |
| Maximum Taxable Earnings | No Limit |
| Employee/Employer Deduction | 1.45% |
| Self-Employment Tax | 2.90% |
| Supplemental Wage Bonus | |
| Rate (Flat Rate Method) | |
| Under $1 million | 25% |
| Over $1 million | 35% |
| FUTA (Employer-paid) | |
| Maximum 2012 Taxable Earnings | $7,000 |
| Percent of Taxable Wages | 6.20% |
| Maximum Credit | 5.40% |
| Normal Net Tax | 0.09%** |
| **20 states, including PA, were affected by the reduction of the FUTA credit due to amounts borrowed from the federal government. | |
| Mileage Reimbursement Rate | |
| 2011 | Jan. to June = $0.51 July to Dec. = $0.555 |
| 2012 | $0.555 |
PENNSYLVANIA |
|
| ALL EMPLOYERS | |
| Minimum Wage | |
| Effective 7/24/09 | $7.25 |
| Note: Training wages for PA employees may no longer be reduced beneath minimum wage. |
|
| Minimum Cash Wage | |
| Tipped Employee | $2.83 |
| Note: Employee must receive more than $30/month in tips. |
|
| State Income Tax | |
| Wage Withholding | 3.07% |
| Unemployment Insurance | |
| Maximum 2012 Taxable Earnings | $8,000 |
| Employee 2012 Deduction | 0.08% |
| Note: Maximum taxable employee earnings are unlimited. |
|
SOCIAL SECURITY |
|
| Early Retirement Age | $14,640/yr.*** |
| ($1,220/mo)*** | |
| Note: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
|
| Full Retirement Age | $38,880/yr.*** |
| ($3,240/mo)*** | |
| Note: Applies only to earnings for months prior to attaining full retirement. One dollar in benefits will be withheld for every $3 in earnings above the limit. There is no limit on earnings beginning the month an individual attains full retirement age. |
|
| ***Social Security beneficiaries will receive a 3.6% COLA for 2012.. | |
Newsletter Summary Page »
To ensure compliance with requirements imposed by the IRS, please note, any advice contained in this publication was not intended, or written, to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This publication is distributed with the understanding that the publisher and distributor are not providing legal, accounting or other professional advice and assume no liability whatsoever in conjunction with the information contained within this publication.