941 Tax Deposit
Requirements
Business Mileage Rate:
The 2012 business mileage rate was 55.5 cents per mile
The 2011 business mileage rate is 51 cents per mile
Effective 7/1/2011 the business
mileage rate changed to 55.5 cents per mile
The 2010 business mileage rate was 50 cents per mile
The 2009 business mileage rate was 55 cents per mile
Retirement Contribution
Limits for 2012:
Maximum contribution limits for those under age 50 and the catch
up amount for those 50 and over are as follows;
401(k)’s are
$17,000 (up from $16,500 from 2011) plus an additional $5,500 catch up if 50 or older.
Simple (savings incentive match plan for employees)
plans are $11,500 (unchanged from 2011) plus an additional $2,500 catch up
if 50 or older.
IRAs (individual retirement plans) are $5,000 plus an
additional $1,000 catch up if 50 or older. The contribution can be
split between a Roth IRA and a traditional IRA, but must not
exceed $6,000. (unchanged from 2011)
Social Security
Wage and Tax Limits:
The wage limit for Social Security
taxes in 2012 is $110,100.00. The
maximum tax to be withheld from employees is $4,624.20. The rate
for employees is 4.2% and 6.2%
for employers. The Medicare rate is 1.45% and the wage limit is
unlimited.
Social
Security Numbers - Identity Theft:
Beginning January 1, 2006, it is no longer permissible to include
more than 4 digits of an employee's social security number on any
'external' documents. This includes check documents, pay stubs,
employee badges, time cards, etc. Accordingly, we have removed the
option of including an employee's social security number on their
pay stub. This doesn't mean that 'internal' documents may not
include the number - such as payroll journals, employee time
journals, etc.
Tip Allocation:
All
employers that have an establishment where tipping is a customary
practice should consider whether to file form 8027. The tip
allocation form is to be completed by employers with more than 10
people, who commonly worked more than 80 hours in a day during the
preceding year. This means that all employees, not just the tipped
employees, are counted in the ten and 80 requirement. The
instructions for form 8027 includes a worksheet for determining
whether the 80 hour limit has been reached.
941 Tax Deposit
Requirements:
Your
tax deposit frequency is determined by a 'look back' period from
July 1st to June 30 of the proceeding year. For example, to
determine your tax deposit frequency for 2011, you would
accumulate your 941 tax liabilities for the periods including July
1, 2009 through June 30, 2010. If the total liabilities for
that period are less than $50,000, you are considered a monthly
depositor for 2011. Your 941 tax deposits for any monthly
period are due by the 15th of the following month. If the
total liabilities for that period are $50,000 or greater, you are
considered a semi-weekly depositor for 2011. 941 tax
deposits for semi-weekly depositors are due as follows; If
your check dates are on Wednesday, Thursday or Friday - your
deposit is due by the following Wednesday. If your check
dates are on Saturday, Sunday, Monday or Tuesday - your deposit is
due by the following Friday. There is an exception to these
rules though. If your accumulated tax liability exceeds
$100,000 for any period, the tax deposit is due the next business
day. Also, if you were a monthly depositor, you would
automatically become a semi-weekly depositor for the rest of the
year.
Health Savings
Account Limits:
With Health
Savings Accounts (HSAs), individuals and businesses buy less
expensive health insurance policies with high deductibles.
Contributions to the accounts are made on a pre-tax basis. The
money can accumulate year after year tax free, and be withdrawn
tax free to pay for a variety of medical expenses such as doctor
visits, prescriptions, chiropractic care and premiums for
long-term-care insurance.
Participating employers can also contribute to accounts, on behalf
of their employees.
Here are the 2012
limits for individual and family coverage, announced by the IRS in
Revenue Procedure 2011-32. They are determined after the
IRS applies cost-of-living adjustment rules, and the changes in
the Consumer Price Index for the relevant period.
|
Health Savings Accounts |
2012 |
2011 |
| Self-only
coverage annual minimum deductible |
$1,200 |
$1,200 |
| Self-only
coverage maximum out of pocket |
$6,050 |
$5,950 |
| Self-only
coverage maximum HSA contribution |
$3,100 |
$3,050 |
| Family coverage
annual minimum deductible (Family coverage can include a
spouse and any dependents) |
$2,400 |
$2,400 |
| Family coverage
maximum out of pocket |
$12,100 |
$11,900 |
| Family coverage
maximum HSA contribution |
$6,250 |
$6,150 |
