Withholding tax tables available from IRS
The Internal Revenue Service has released the 2011 Percentage Method Tables for Income Tax that were developed as a result of the recently passed Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.
The new tables, available in Notice 1036,should be implementedby employers as soon as possible, but no later than January 31, 2011.
New for 2011
Social Security and Medicare tax – For 2011, the employee tax rate for Social Security is 4.2 percent and the wage base limit is $106,800. The employer tax rate remains unchanged at 6.2 percent. The Medicare tax rate is unchanged for employers and employees.
Making Work Pay credit expires – The Making Work Pay credit expires December 31, 2010. The income tax withholding tables are not adjusted for the Making Work Pay credit. There is no longer an optional additional withholding adjustment for pensions.
Advance payment of earned income credit expires – The option of receiving advance payment of the EIC expires December 31, 2010. The IRS suggests that if any employee expects to be eligible for the EIC, they may reduce their withholding to receive the benefit of a portion of the credit throughout the year.
The procedure for withholding on wages on nonresident aliens has been modified and is included in the notice.
Related articles:
Email sign-up
Voice of the Editor
What makes a company a great place to work? Experience, a ConnectEDU company, uses criteria that include benefits, career advancement opportunities, culture, and work/life balance to form its annual list of the Best Places to Work for Recent Grads. BDO USA and Ernst & Young both made the Top 25 list. Read what makes these firms stand out and find out what can be done at your firm to entice college grads.
Gail Perry, CPA
Publisher/Editor-in-Chief, AccountingWEB
editor@accountingweb.com
Publisher/Editor-in-Chief, AccountingWEB
editor@accountingweb.com
Named one of the 25 Most Powerful Women in Accounting
ADVERTISEMENT
This Week on AccountingWEB
Hang Bower of BDO USA and Dan Black of Ernst & Young share their perspectives on why their firms made the Best Places to Work for Recent Grads 2013 list.
Herbein + Company, Inc. firm members talked with AccountingWEB about their year-round employee wellness program.
Bill Walter of Gross, Mendelsohn & Associates and Harold Gaar of TravisWolff LLP weigh in on mobile technology use while employees are at work.
CPA Robert Raiola, who heads the Sports & Entertainment Group of Fazio, Mannuzza, Roche, Tankel, LaPilusa, LLC, talks NFL player income taxes with AccountingWEB.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
