Happy New Year!
With all of the publicity of the fiscal cliff over the past few weeks, we wanted to make sure you were aware that the EMPLOYEE portion of FICA has reverted to the old rate of 6.2% (from 4.2% for the past two years). Since this is withheld from your employee’s paychecks, please make sure that the paychecks you write this month have the correct rate. If you are using a payroll service this will be addressed by them, but if you are preparing the checks manually or with out-of-date software, you should double check this tax.
Gross wages should be subject to 7.65% total FICA tax for both employers and employees.
For assistance with updating your computer program to properly process payroll, please contact Jason Kindseth (952-476-7185) for QuickBooks and Peachtree, and Luke Kotilinek (952-476-7188) for Microsoft Dynamics GP and Brent Goedel (952-476-7142) for Master Builder and Timberline.
Please let Copeland Buhl & Co PLLP know if you require assistance regarding all of the recent tax law changes.
Best wishes for 2013!