Here’s one important piece of info you can pass along to Payroll to help them better prepare for 2012.
The Social Security Administration has just issued the taxable wage base for next year.
Starting in 2012, the amount of employees’ pay that’s subject to social security tax will be $110,000.
That’s a significant increase from this year’s amount of $106,800. It’s based on the increase in average employee wages.
So for 2012, the maximum social security tax employees and employers will each pay is $6,826.20.
Note: It may be good idea to remind Payroll that there’s no limit to the wages that are subject to Medicare tax, which means your firm must take the 1.45% tax off all covered wages.