2012 PAYROLL INSTRUCTIONS
FEDERAL TAX WITHHOLDING/LIABILITIES
EMPLOYEE EMPLOYER
TAX RATES RATES EXPLANATION:
FWT: Per Table N/A Federal Income Tax Withholding: The
correct amount of withholding tax to
deduct from gross wages is determined
based on the appropriate table provided
in the Employer’s Tax Guide. However,
you must determine the following:
-Gross Wages Paid
-Pay period; weekly, monthly, etc.
-Marital status
-Number of Exemptions (per W-4)
-Retirement Deductions
SS (4.2%) (6.2%) Social Security Tax: Referred to
as OASDI Tax. Based on a flat rate of
SOCIAL SECURITY (6.2%) (6.2%) 6.2% of gross wages for employers and 4.2%
eff. 01/01/12-02/29/12 and 6.2% eff
03/01/2012 for employees. Withheld from
employee and matched by the employer
at the same rate after 02/29/2012. Applies to
the first $110,100 of wages paid to an employee
during the calendar year 2012.
MEDICARE (1.45%) (1.45%) Medicare Tax: Based on a flat rate of
1.45% of gross wages. Withheld from
employee and matched by the employer
at the same rate. Applies to all wages
paid to an employee during 2012. No
wage limit.
FUTA N/A (.6%) Federal Unemployment Tax Act:
Applies only to employers. Generally
paid on a quarterly basis. Applies to the
first $7,000 of wages paid to each
employee or maximum of $42.00 per
employee per year.
NEW JERSEY WITHHOLDING / LIABILITIES
EMPLOYEE EMPLOYER
TAX RATES RATES EXPLANATION:
NJ WT 1.5% to 7% N/A New Jersey Income Tax Withholding:
The correct amount of tax to deduct from
gross wages is determined based on the
appropriate table provided in the New
Jersey Gross Income Tax booklet. However,
you must first determine the following
-Gross wages
-Pay period; weekly, monthly, etc.
-Number of exemptions (per NJ W-4)
Once the above information has been
determined, the tables show the amount
of New Jersey state income tax to deduct
for each pay period.
NJ UI/WF/FL (.505%) Rate Varies New Jersey State Unemployment, Work Force
and Family Leave: Deduction is computed as
flat percentage of gross wages. The current tax
rate withheld from employee for 2012 is .505%,
(.00505) of gross wages. Applies to the first
$30,300 of wages paid during the calendar
year. Maximum contributions are $153.02
per year per employee.
NJ DI (.2%) Rate Varies New Jersey State Disability: Deduction
is computed as a flat percentage of gross
wages. The current tax rate withheld
from employee for 2012 is .2%, (.002)
of gross wages. Applies to the first
$30,300 of wages paid during the calendar
year. Maximum contributions are $60.60
per year per employee.
PENNSYLVANIA WITHHOLDING / LIABILITIES
EMPLOYEE EMPLOYER
TAX RATES RATES EXPLANATION:
PA Income Tax (3.07%) N/A PA Income Tax Withholding: The
correct amount of tax to withhold from
gross wages is 3.07% (.0307).
Unemployment Tax (.08%) Rate Varies PA State Unemployment: The employer
only pays for the first $8,000.00 in 2012 at
the employer’s rate. Employee tax rate .08%
(.0008).
CITY OF PHILADELPHIA
EMPLOYEE EMPLOYER
TAX RATES RATES EXPLANATION:
Resident (3.928%) N/A Philadelphia Resident: The correct
amount of tax to withhold from all gross
wages is 3.928% (.03928).
Non-Resident (3.4985%) N/A Philadelphia Non-Resident: The correct
amount of tax to withhold from all gross
wages is 3.4985% (.034985).
MINIMUM WAGE INFORMATION
TAX EFFECTIVE DATE MINIMUM WAGE MINIMUM W/TIPS
Federal 07/24/2009 $ 7.25 $ 2.13
New Jersey 07/24/2009 $ 7.25 $ 2.13
Pennsylvania 07 /24/2009 $ 7.25 $ 2.83
Delaware 07/24/2009 $ 7.25 $ 2.23
