With 2012 almost upon us, we thought it was time to review the new payroll and tax limits for 2012. There are numerous 2012 tax updates, so the chart below is only meant as a guide. Be sure to consult with your accountant or Human Resources Outsourcing firm for more information.

Below is a summary of the important changes. Payroll/tax figures which remain the same in 2012 are noted as such.

FEDERAL

FICA (Social Security)

Maximum Taxable Earnings – $110,100

Employer/Employee 2012 Withholding Percent – 6.2%

Employer/Employee 2012 Maximum Withholding -$6,826.20

FICA (Medicare)

Maximum Taxable Earnings – No Limit

Employer/Employee 2012 Withholding Percentage – 1.45%

Employer/Employee 2012 Maximum Withholding – No Limit

SUPPLEMENTAL WAGES

Rate (flat rate withholding method)  – 25%

Over $1 million – 35%  (No change from 2011)

WITHHOLDING

The 2012 withholding tables have not been finalized, as Congress has not yet finalized their decision on whether to adjust the tax rates.  Any changes in the withholding tables will be communicated once they have been announced.

401 K PLAN DEFERRAL LIMITATIONS:

Elective Deferrals – $17,000 ($500 increase from 2011)

401K Catch Up Contribution Deferrals – $5,500 (No change from 2011)

HSA PLAN DEFERRAL LIMITATIONS

Individual Maximum Contribution (Includes Employer Contribution) – $3,100  (up $50 from 2011)

Family Maximum Contribution (Includes Employer Contribution) – $6,250 (up $100 from 2011)

Catch Up Contributions (55+ years old)  – $1,000  (No change from 2011)

 

CALIFORNIA ONLY:

SUPPLEMENTAL WAGE WITHOLDINGS

Bonuses & Earnings from Stock Options – 10.23%  (No change from 2011)

Other Supplemental Earnings – 6.60%   (No change from 2011)

DISABILITY INSURANCE (Employee Paid)

Maximum 2012 Wages Subject to Withholding -  $95,585   (up $2,269 from 2011)

Employee 2012 Withholding Percentage -  1.0%  (down .2% from 2011)

Employee 2012 Maximum Deduction – $955.85  (down $163.94 in 2011)