What’s New for 2012?
- The employee tax rate for social security is 4.2% on wages paid and tips received before March 1, 2012. The employee tax rate for social security increases to 6.2% on wages paid and tips received after February 29, 2012; the employer tax rate remains unchanged at 6.2%.
- The Medicare tax rate is 1.45% for both the employee and employer, remaining unchanged from 2011.
- The FUTA tax rate is 6.0% for 2012.
- The 2012 amount for one withholding allowance on an annual basis is $3,800.
- Employers must use new Form 8822-B, Change of Address—Business, for any address change.
- The Vow to Hire Heroes Act of 2011 is a new law which provides an expanded work opportunity tax credit to businesses that hire eligible, unemployed veterans.