FEDERAL & STATE TAX WITHHOLDING/LIABILITIES

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.

FEDERAL TAX WITHHOLDING/LIABILITIES (continued)

EMPLOYEE EMPLOYER

TAX RATES RATES EXPLANATION:

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 a

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

Dan Padden | 02/07/2012

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FEDERAL & STATE TAX WITHHOLDING/LIABILITIES

MINIMUM WAGE INFORMATION