Financial Fitness - Fall 2012
Fall 2012 PDF
Fall 2012 Articles
- Health Care Reform Act: “The Penalty Tax”
- Employee or Independent Contractor?
- Clarified U.S. Auditing Standards
- Did You Know?
- Annual Lease Value Calculation (Auto Add-back)
- The Affordable Care Act is Phasing in ... Are You Prepared?
- Key Benefit Plan Limits for 2013
- Putting Together Your Tax Information: The “Short List” for Businesses and Individuals
- Average Itemized Deductions
- Income Tax Rates 2012
- 2013 Wage/Tax Facts Quick Reference Guide
|Minimum Cash Wage|
|Maximum Tip Credit|
|Youth Sub-Minimum Wage|
|First 90 Days of Employment||$4.25|
|FICA (Social Security)|
|Maximum Taxable Earnings||$113,700|
|*The employee Social Security deduction may remain at the 2012 level of 4.2% depending upon future Congressional legislation. The employer deduction will remain at 6.2%.|
|Maximum Taxable Earnings||No Limit|
|**An additional .09% Medicare tax will apply to wages greater than $200,000 (single), $250,000 (married filing jointly) and $125,000 (married filing separately).|
|Supplemental Wage Bonus|
|Rate (Flat Rate Method)|
|Under $1 million||25%|
|Over $1 million||35%|
|Maximum 2013 Taxable Earnings||$7,000|
|Percent of Taxable Wages||6.00%|
|Normal Net Tax||0.09%***|
|***20 states, including PA, were affected by the reduction of the FUTA credit due to amounts borrowed from the federal government.|
|Mileage Reimbursement Rate|
|2013||not available at printing|
|Note: Learners, students and certain disabled workers may be paid as little as 85% of minimum wage with a special certificate. If a student is paid less than minimum wage, they may only work 20/wk.|
|Minimum Cash Wage|
|Note: Employee must receive at least $7.25 per hour when wage and tips are combined. If not, the employer must make up the difference.|
|State Income Tax|
|Maximum 2013 Taxable Earnings||$8,500|
|Employee 2013 Deduction||0.07%|
|Note: Maximum taxable employee earnings
|Early Retirement Age||$15,120/yr.****|
|Note: One dollar in benefits will be withheld for every
$2 in earnings above the limit.
|Full Retirement Age||$40,080/yr.****|
|Note: Applies only to earnings for months prior to
attaining full retirement. One dollar in benefits will
be withheld for every $3 in earnings above the limit.
There is no limit on earnings beginning the month
an individual attains full retirement age.
|****Social Security beneficiaries will receive a 1.7% COLA for 2013.|
To ensure compliance with requirements imposed by the IRS, please note, any advice contained in this publication was not intended, or written, to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This publication is distributed with the understanding that the publisher and distributor are not providing legal, accounting or other professional advice and assume no liability whatsoever in conjunction with the information contained within this publication.