Posted on January 31, 2012

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.