2012 FICA & FUTA LIMIT & PERCENTAGE RATES
Before running a payroll for a new calendar year
(2012), the MTD, QTD and YTD (from 2011) on the employees’ records must be
cleared out. Running the Clear YTD, QTD,
MTD Emp/Recurring program does this. Go to:
- Payroll
(Module 1)
- System
Management Functions (Task 32)
- Clear
YTD, QTD, MTD Emp/Recurring (Sub-task 3)
Clearing these fields will not interfere with the running of
W-2s for 2011, since the information for the W-2s come from the Payroll
History. Note: If these fields are
not cleared, the current year’s wages (2012) that print on the check stub
will also include the wages from the prior year (2011).
- Also
note that the FICA Maximum for 2012 has changed:
- 2011
$106,800.00
- 2012
$110,100.00
- See below the change needed in field
5. Unless you have an
employee who is going to exceed the $110,100.00 before the 2011 W2’s are
printed, then this change can be made after your W2’s are printed.
- The FICA employee tax rate for social
security is still 4.2% as it was in 2011.
- The
FICA employer tax rate for social security stayed the same as 2011 at
6.2%.
FICA fields are found in:
- Payroll
(Module 1)
- System
Management Functions (Task 32)
- Update
P/R Execution Parameters (Sub-task 4)
- Field
5: FICA Maximum: 110,100.00
- Field
6: FICA employee %: 4.20
- Field
7: FICA employer %: 6.20
ADDITIONAL NOTE: Field 5: FICA Maximum needs to be the 2011
amount of $106,800.00 when the 2011 W2’s are printed and when the payroll
reports are printed for the 2011 4th quarter.
Verify the 2012 FUTA
% & maximum:
- Payroll
(Module 1)
- System
Management Functions (Task 32)
- Update
P/R Execution Parameters (Sub-task 4)
- Field
20 Fed unemp max: 7000.00
- Field
21 Fed unemp pct: 0.60
STATE:
- If
your state has an unemployment maximum and an unemployment % you may need
to update field 22 & 23. Verify
with your state website or your accountant.