This increase can mean as much as $80 less that an employee will now be taking home on a monthly basis. A worker earning $50,000 will see their taxes increase by about $1,000 annually based on this change alone. Employers continue to pay 6.2 percent, the same they have paid for the last few years.
The change means that employers and employees each pay a maximum of $7,049.40. Payroll service solutions will automatically effectuate this change to employer's withholding requirements. The increase on the amount to be withheld may be as much as $2,425.20.
Employers must begin this payroll withholding by Feb. 15, 2013. Employers who use a payroll service solutions company will have the new calculations automatically prepared for them.
For single employees who annually earn more than $400,000 and married employees who earn over $450,000 a year, the tax rate has increased from 35 percent to 39.6 percent. All workers, but particularly workers in these income levels, should review their W-4 withholding form and consider revising it in order to avoid a large tax bill at the end of the year.
If you, as an employer, do not already use a payroll service solutions company, you should consider doing so. A payroll service solutions company like PAYDAY Workforce Solutions will ensure accurate application of the new payroll withholding tax laws and will provide you with accurate records. This relieves you of spending time studying new tax laws and simply hoping you interpret them correctly.
The work opportunity tax credit (wotc) provides benefits to business owners who hire individuals of a target group, including qualified u.s. veterans and those receiving temporary assistance to needy families (tanf). the wotc program provides a federal income tax credit against the wages paid to eligible target groups. the credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations, but the amount of the credit will depend on a number of factors, including the length of the veteran's unemployment before hire, the number of hours the veteran works, the hire date of the veteran, and the veteran's first-year wages. please see this link for more details: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Expanded-Work-Opportunity-Tax-Credit-Available-for-Hiring-Qualified-Veterans
PAYDAY Workforce Solutions provides a single database SAAS solution for Human Capital Management (HCM) including payroll, human resources, time management, benefits administration and onboarding to companies of all sizes and in various industries.
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