20. January 2012 02:52
IRS announces income tax changes for 2012
· The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. The employer tax rate for social security remains unchanged at 6.2%.
· The tax rate for social security is 6.2% each for the employee and employer. (It was 4.2% for employee in Year 2011)
· The social security wage base limit is $110,100. (It was $106,800.00 in Year 2011)
· Personal and dependent exemptions: $3800 (It was $3,700 in Year 2011)
· An increase in tax-bracket thresholds
The IRS asks that employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012.
Designed with non-accountant business owners and managers in mind, the new ezPaycheck 2012 payroll software is released to help small businesses and accountants to handle the latest tax changes easily and smoothly.
Federal Income Tax Tables
State Income Tax Tables