(ALL INFORMATION PROVIDED IS CURRENT AS OF 12/17/10)
TAXABLE EMPLOYER EMPLOYEE MAXIMUM MAXIMUM
FICA WAGE BASE TAX RATE TAX RATE EMPLOYER TAX EMPLOYEE TAX
SOCIAL SECURITY
(OASDI) $ 106,800 6.20% 4.20% $ 6,621.60 $ 4,485.60
(Please note: Employee rate has been lowered by congress)
MEDICARE
(HI) No limit 1.45% 1.45% No limit No limit
FEDERAL TAXABLE TAX
UNEMPLOYMENT WAGE BASE RATE
(Please note: family members of sole proprietors are exempt from this tax)
$ 7,000 0.8% Sick pay, all tips and taxable
fringe benefits included.
Employers need to remit FUTA taxes only when the liability has reached $ 500.
PA INCOME TAX
3.07%
PENNSYLVANIA UNEMPLOYMENT
TAXABLE TAX
WAGE BASE RATE
Employer $ 8,000 As set by PA
Employee No Limit .08% (.0008)
LOCAL EARNED INCOME TAX
Berks EIT remains at 1%. (If you work in the City of Reading, a .3% ?Reading Distressed Rate? applies)
City of Reading is 3.6% (2011 taxes will be paid through the Berks EIT bureau)
Berkheimer varies by municipality.
Philadelphia: Resident ? 3. 9298%; Nonresident ? 3.49857%. These rates are effective July 1, 2010.
LOCAL SERVICES TAX
Most municipalities and school districts have an annual Local Services tax. Each municipality has the right to collect annual LST tax up to $ 52 per employee. Please check with your municipality for your specific LST rate. Effective January 1, 2008, this tax is withheld on a per-pay basis (if the tax rate is $52 divide your number of payroll periods per year by this amount) and remit quarterly.
FEDERAL MINIMUM WAGE
MINIMUM MINIMUM WAGE MAXIMUM CREDIT MAXIMUM TIP
AS OF WAGE WITH TIPS FOR TIPS CREDIT PERCENTAGE
7/24/09 $ 7.25 $ 2.13 $ 5.12 n/a
PENNSYLVANIA MINIMUM WAGE
7/24/09 $ 7.25 $ 2.83 $ 4.42 n/a
FEDERAL AND OASDI-HI 941 TAX DEPOSIT
To compute your deposit of Federal income tax withheld and OASDI & HI taxes:
OASDI & HI Employer's Federal tax
withheld matching withheld
from + portion of + from = Tax Deposit
employee OASDI & HI employee
New employers are monthly schedule depositors for the first year. Each November, the IRS notifies employers if their coming year deposit requirements will change. Exceptions to the monthly rule: Businesses will be able to make quarterly deposits if they are sure they will pay less than $2,500 each quarter of the entire tax year. Businesses with $100,000 one-day liability must deposit by the next business day.
Electronic Deposit Requirement. Federal tax deposit coupons, Form 8109, will be discontinued at the end of 2010. As of January 1, 2011, all payroll taxes must be electronically deposited via internet or telephone through the Electronic Federal Tax Payment System. Please contact our office if you need assistance with enrolling in EFTPS.
MISCELLANEOUS
New Hire Reporting regulation for PA employers was effective January 1, 1998. All employers must report certain information on new hires to the state within 20 days. We can assist you with this form.
The Standard Business Mileage Rate for 2011 is 51 cents (effective January 1, 2011).
