The Internal Revenue Service released Notice 2012-9 in January 2012. This notice helps to clarify the W2 reporting requirements for the cost of coverage with employer-sponsored group health plans. These new requirements are part of the Affordable Care Act.

To see more about the details, please click on the following link which will take you straight to this IRS information: http://www.irs.gov/newsroom/article/0,,id=237894,00.html

At the moment of this posting – the United States Congress continues debating if the payroll tax holiday from 2011 will be extended for all of 2012.

What was originally billed as a one year payroll tax holiday is now going on it’s 14th month and awaits action by Congress to determine if it will be extended until December 31, 2012.

The current rule has the employee portion of social security at a rate of 4.2% for all pay dates between January 1, 2011 and February 29, 2012.  For pay dates March 1, 2012 and later the rate is currently set to be 6.2% for employees.

Paystubz software will be up to date and ready no matter what happens.  Stay involved and call your Congress person and let them know your thoughts by using this link to find their phone number:

US House of Representatives:  http://www.house.gov/representatives/

US Senate:  http://www.senate.gov/general/contact_information/senators_cfm.cfm

New legislation to impact payroll taxes for many!  For all American businesses, the HIRE legislation was signed into law mid-March 2010.  This legislation creates the opportunity for employers to save employer social security taxes along with a possible income tax credit.  Regulations detailing everything should be released by late March or early April.  In the meantime, click this link to see more:  HIRE Legislation Details.

ALSO – South Dakota’s legislature once AGAIN adjusted the Unemployment Surcharge effective January 1, 2010, the surcharge is 1.0% for calendar year 2010 and .75% for calendar year 2011.  See more here:  SD Unemployment Surcharge Details.

If you have questions about either piece of legislation, please call us anytime at:  605-721-2480 and ask for David or Darin.

The Social Security Administration (SSA) has announced there will be no change to the Social Security Wage base in 2010 (possible this could occur for 2011 as well).  Since that increase is tied to inflation, which has been low recently, there’s no increase in 2010.   So, for those earning over $106,800 in wages will NOT see an increase in their share of social security tax (6.2% of W2 wages) – OR, their employers portion!

See this link for more detail:  http://www.ssa.gov/OACT/COLA/cbb.html

Please remember, South Dakota’s Unemployment tax rates have increased no matter what your experience rating!  Effective October 1, 2009, all businesses subject to South Dakota Unemployment face an additional 1.5% rate.  This rate is NOT retroactive for wage limit testing.  Visit the official site here:  http://dol.sd.gov/ui/uitaxemployerupdate.aspx