Form 940 FUTA Tax:
The Department of Labor did not include Pennsylvania on the list of credit reduction states for 2012. As a result, Pennsylvania employers will not be assessed a surtax, as they were in 2011, on their 2012 Form 940 for Federal Unemployment Tax. Therefore, the 2012 effective FUTA tax rate for Pennsylvania employers is .006.
Ohio employers, however, must pay a FUTA surtax of .006, in addition to their base rate of .006, because Ohio is on the list of credit reduction states.
PA Form 1099MISC:
Just a reminder that entities that issue Form 1099MISC for either payments of nonemployee compensation or payments under an oil and gas lease in 2012 must also submit a copy of the Form 1099MISC to the Pennsylvania Department of Revenue.
2013 FICA Limit:
For 2013, FICA (Social Security) tax must be paid on the first $113,700 of wages paid to an employee.
2013 Payroll Tax Cut?????:
Unless Washington does something to extend this soon, the 2% reduction in an employee’s Social Security tax withholding, which began in 2011, will expire. If that happens, all employees will see a decrease in their 2013 take-home pay because employers will need to withhold 6.2% rather than 4.2% from an employee’s wages for Social Security tax.
2013 Additional Medicare Tax:
Employers must withhold an additional Medicare tax of .9% on any wages paid to an individual in excess of $200,000. An individual is liable for the Additional Medicare Tax on any wages, compensation, or self-employment income exceeding the following threshold amounts for the individual’s filing status:
Married filing jointly $250,000
Married filing separately $125,000
Head of household $200,000
Qualifying widow $200,000
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