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2013 Social Sec/Medicare Rates & Wage Bases

2013 Social Sec/Medicare Rates & Wage Bases Social Security: EmployEE: 6.2% on earnings up to $113,700 EmployER: 6.2% on earnings up to $113,700 Medicare: Employee/employer (each) 1.45% on all earnings* * Certain high-income taxpayers will be required to pay an additional Medicare tax beginning in 2013. For details, see the IRS information on this topic. Basics: Employer […]

QuickBooks Payroll Fees Changing for New Customers

Upcoming changes to the Intuit Payroll product line will apply to NEW small business payroll customers only, beginning July 22, 2013. Small business customers with existing payroll subscriptions will not be affected. The changes do not affect QuickBooks Enhanced Payroll for Accounting Professionals.  What’s Changing? Simplified product offerings that easily help clients choose the right payroll service […]

Questions and Answers for the Additional Medicare Tax

Questions and Answers for the Additional Medicare Tax: Source: The following questions and answers provide employers and payroll service providers information that will help them as they prepare to implement the Additional Medicare Tax which goes into effect in 2013. The Additional Medicare Tax applies to individuals’ wages, other compensation, and self-employment income over […]

2013 IRS Retirement Contribution Limits

2013 IRS Retirement Contribution Limits,-Employee/Retirement-Topics-SIMPLE-IRA-Contribution-Limits

Partners are not employees and should not be issued a W-2

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership must file an annual information return to report the income, deductions, gains, losses, […]

Revised Definition of a New Hire beginning on 04/21/12

The Trade Adjustment Assistance Extension Act of 2011 (PUblic Law 112-40), which amends Section 453A (a) (2) of the Social Security Act, includes a revised definition of “newly hired employee” to include any worker: 1. not previOusly employed by the employer; or 2. previously employed by the employer but separated from such prior employment for […]

2012 SIMPLE IRA Contribution Limits

SIMPLE IRA contributions include: salary reduction contributions and employer contributions: a. matching contributions or b. nonelective contributions. No other contributions can be made to a SIMPLE IRA plan. Salary reduction contributions. The amount the employee contributes to a SIMPLE IRA cannot exceed $11,500 for 2011 and 2012. If an employee participates in any other employer plan […]

CA Employer New Hire Notice (Wage Theft Protection Act of 2011)

California Governor Brown has signed into law AB 469 (Chapter 655, Statutes of 2011) known as the Wage Theft Protection Act of 2011. Click here for the full text of the Bill. The provisions of the Act become effective January 1, 2012. Labor Code section 2810.5 was added by the bill which requires that all […]

Payroll tax cut extended for remainder of 2012

The Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630) that was signed into law by President Obama on February 22, 2012, extends the 4.2% Social Security tax rate for employees through December 31, 2012. It also extends jobless benefits for between 63 weeks and 73 weeks, and averts a big cut […]

Employer-Provided Health Coverage Reporting Requirements on W-2 (2011 and 2012)

Employer-Provided Health Coverage Reporting Requirements on W-2. Source:,,id=237894,00.html QuickBooks “Health Coverage Cost” set-up for reporting code DD in Box 12 Source: and

SD-Payroll Tax: 2012 Rates

2012 South Dakota Tax Rates and Wage Bases: Unemployment (UI): Rate: varies by employer UI account. First three year determined by statute: A “Contribution and Investment Fee Rate Notice for 2012” is mailed in November for the next year’s rates and wage bases. If you cannot locate, call SD DOL UI Insurance Division 605-626-2312. Wage […]

2012 Form W-4, Employee Withholding Allowance Certificate

Workers should review their withholding every year and if necessary, fill out a new Form W-4 and submit it to their employer. Workers who claimed exempt on their 2011 Form W-4 will need to complete a new Form W-4 for tax year 2012 by February 16, 2012 in order to maintain their exempt status.

Reporting in QuickBooks Employer-Sponsored Health Coverage Cost for Tax Year 2012.

Reporting in QuickBooks Employer-Sponsored Health Coverage Cost for Tax Year 2012. If you are currently using an Intuit QuickBooks Payroll solution – including Basic Payroll, Standard Payroll, Enhanced Payroll, or Assisted Payroll – read on to find out more about reporting employer-sponsored health coverage cost for tax year 2012.  A new tax tracking type, Health […]

Wages paid in excess of $18,350 within the first two months of 2012.

What to do regarding wages paid in excess of $18,350 within the first two months of 2012?  At this time, 4.2% Social Security Tax should be withheld on all wages for that period (01/01/12-02/29/12). Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive […]

Payroll: 2012 Social Sec/Medicare Rates & Wage Bases

2011 Social Sec/Medicare Rates & Wage Bases Social Security: EmployEE: 4.2% on earnings up to $110,100* (see below) EmployER: 6.2% on earnings up to $110,100 Medicare: Employee/employer (each) 1.45% on all earnings * Section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced, for wages and salaries paid in […]

CA-Payroll Tax: 2012 Rates

2012 California Payroll Tx Rates:

Employers Required to Include Employee’s Date of Hire on New Hire Reports Starting 01/16/2012

Effective January 16, 2012, employers will be required to include an employee’s date of hire when submitting a new hire report. The date of hire is the date an employee first performed services for pay. This requirement was enacted in Section 802 of the Claims Resolution Act of 2010 (CRA; Pub. L. No. 111-291) signed […]

End of Quarter Payroll Tax Review

Here are some tricky things that we often have to fix for clients at the end of each quarter before the tax returns can be filed:  Tax rates aren’t correct This happens for three reasons: UI Rates typically change at the beginning of the calendar year and must be updated in QuickBooks. Rates sometimes change mid-year. […]

Wage Compensation for S Corporation Officers

FS-2008-25, August 2008 Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code. When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered […]

CA Workers Compensation: Independent Contractor vs. Employee

The difference between independent contractors and employees is sometimes difficult to distinguish when it comes to workers’ compensation insurance. California courts and state agencies typically use a number of tests to determine whether an individual is an employee or an independent contractor. A crucial factor in determining employment status is the employer’s right to direct […]

Know which payroll is included for California Workers Compensation premiums.

Workers’ compensation premium is assessed on gross wages and other compensation as defined by law. The table below identifies whether or not a specific form of compensation is considered as payroll for premium calculation. Included as Payroll Not Included as Payroll Sick, vacation, and holiday pay Tips Bonuses and commissions Reward for discovery or invention […]

South Dakota Youth Employment Laws

South Dakota Youth Employment Laws Source:

South Dakota Minimum Wage $7.25/hour

South Dakota Minimum Wage $7.25/hour Source:

No law requiring rest or meal breaks in South Dakota

No law requiring rest or meal breaks in South Dakota Source:

Final Paycheck laws for South Dakota employers

Final Paycheck (Termination or Separation) laws for South Dakota employers. Source: