Annual Rates for 2012 
Social Security rate employee 4.2% / employer 6.2%
Social Security wage limit $110,100
Medicare rate 1.45% employer + employee
Medicare wage limit unlimited
FUTA taxable wage base $7,000
FUTA rate 6.0%
FUTA maximum credit 5.4%
Minimum FUTA deposit rate 0.6%
Business mileage rate* $.555/mile
Medical mileage rate $.23/mile
Charitable mileage rate $.14/mile
Relocation mileage rate $.23/mile

* The business mileage rate can only be taken if the taxpayer owns or leases a vehicle that is not for hire and was not depreciated under ACRS, MACRS, or Section 179 in previous years.


Minimum Wage Levels

Federal $7.25/hour

Minnesota $6.15 or $5.25 for small businesses with overtime pay required after 48 hours of work in 1 week

45 states have passed laws with their own minimum wage levels.  Additionally, many counties and cities have passed their own minimum wage requirements.  Other jobs, ones which earn tips or in small companies, are often subject to lower minimums.  Please check your state website to ensure compliance.


Qualified Retirement Plan Limits

Pretax contributions for 401(k) and SEP plans and 403(b) annuities $  17,000
Catch-up allowance for workers aged 50 and over $    5,500
Section 415(b) defined benefit plan ceiling $200,000
Combined employer/employee pay-in limit $  50,000
Annual compensation limit under:
Section 401(a)(17) and Section 404(1) $250,000
Section 408(k)(3)() IRA, SEP or SIMPLE plan limits $250,000
Pretax contributions for SIMPLE plans $  11,500
Catch-up allowance for workers aged 50 and over $    2,500

Payroll Tax Deposits

Due the 15th of each month, or the next business day if banks are closed, for the previous month’s payroll if business is a monthly depositor.

Quarterly 941s (federal payroll tax returns) are due April 30, July 30, October 30, and January 31 for the previous quarter’s liabilities.

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