The first quarter of 2012 is come and gone, so start thinking about filing those payroll taxes for the first quarter. Here are a few important facts about first quarter 2012 payroll.
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The 2% reduction in employee FICA
tax was extended through December 2012. The employee portion of FICA tax is 4.2%. The employer portion stays at 6.2%. Medicare tax is still 1.45% for both. - Remember that mid year last year the Federal Unemployment Tax (FUTA) rate dropped to 6% from 6.2%. The 6% rate is still in effect for 2012.
- Michigan increased the level of earnings subject to unemployment tax (SUI). The first $9,000 of earnings (up from $8,500) is now subject to unemployment tax.
- Rhode Island also increased their SUI wage base to $19,600 for employers whose tax rate is less than 9.79%. If the employer SUI rate is greater than 9.79% the first $21,100 of wages is taxable.
- Arizona increased the Special Assessment Tax rate included in SUI from 0.4% to 0.5%.
- South Carolina decreased the maximum SUI surcharge from 0.5533% to 0.486%
- Wyoming also dropped their Employment Support Fund Factor rate from 0.18% TO 0.164%
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Finally Hawaii completely eliminated the Employment and
Training assessment rate.