OUR THOUGHTS ON:

Payroll-Related Information for 2012 and 2013

Tax

By Thomas Lisak

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
     Single  $200,000
     Head of household  $200,000
     Qualifying widow  $200,000 

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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