Please be advised that effective January 1, 2012 there will be changes to Payroll Taxes and employer/employee withholding.

The 2012 Social Security Tax wage base will be increased to $110,100. The 2012 Social Security Tax Rate will remain 6.2% for employers and 4.2% for employees until February 29, 2012.  As of March 1, 2012 the employee rate may increase to 6.2% unless Washington votes to extend the 4.2% rate again.  We will keep you posted. ALL wages are subject to Medicare Tax.  The Medicare Tax Rate will remain at 1.45% each for employers and employees.

As of January 1, 2012 the New York MTA payroll tax has been eliminated for employers who have payroll below $1.25 million.

Please be reminded that you must obtain forms W-4 and I-9 for all NEW employees.  In addition, all New York State employers must send a copy of the W-4 to New York State for all new employees – within 20 days of the hiring date.

Please be further reminded that most states have strict requirements for Workers’ Compensation and Disability.  Please be sure that you have the proper coverage.  Finally, the Department of Labor requires that payroll records for all employees containing wages, hours etc. be maintained on premises.  Please feel free to check with us to insure that your records are in compliance with government standards.

Also note that the Federal, New York State and New Jersey State minimum wage remains $7.25 per hour.  The Connecticut minimum wage remains $8.25 per hour.  Please be sure to adhere to correct overtime rates for all employees.  If unsure, please feel free to call.