PAYROLL

Important Payroll Information and News

FICA (Social Security) for 2012

• Maximum Taxable Earnings: $ 110,100.00
• Employee Tax Rate: 4.2% (Prior to March 1)
• Employer Tax Rate: 6.2%

Medicare for 2010

• Maximum Taxable Earnings: No Limit
• Employee Tax Rate 1.45%
• Employer Tax Rate: 1.45%
• Maximum Deduction: No Limit

Supplemental Wage/Bonus Rate

• (Flat rate withholding method): 25%
• Pay over $1 Million: 35%

IRS Form W-4 Information:

• Form W-4 claiming exemption from withholding expires on February 16, 2012.
• Form W-4 must be submitted annually to Payroll to claim the exemption
• Refer to Publication 15 from the IRS (http://www.irs.gov/pub/irs-pdf/p15.pdf)

Nonresident Alien Employees

• Nonresident alien employees must file Form W-4:
  • May not claim "Married"
  • May not claim "Exempt"
  • May not claim more than "01" allowances
  • Must write "Nonresident Alien" or NRA" above the dotted line on Line 6
• Must file Form 8233 to claim exempt due to tax treaty 
• Form 8233 expires annually on December 31.