Updated Employer’s Tax Guide Available on IRS.gov
The IRS publishes a guide annually that explains employer tax responsibilities. Known as Publication 15, the Employer’s Tax Guide or Circular E, the guide outlines the legal and tax requirements necessary in the hiring process. The publication also includes tax tables employers can use to calculate the amount of federal withholding from employees’ pay.
Updates to the guide include:
- Social Security wage base limit is increased to $110,100 for 2012.
- Social Security tax rate for employers is set at 6.2% for 2012. The Social Security tax rate for employees is reduced to 4.2% through February 29, 2012. Although Congress is discussing an extension of the tax reduction, if one is not passed the Social Security tax rate for employees will return to 6.2% for the remainder of 2012.
- The federal unemployment tax rate (FUTA) was reduced from 6.2% to 6.0% in July 2011. It will remain at 6.0% for 2012.
- The Attributed Tip Income Program (ATIP) was discontinued as of December 31, 2011.
- In 2012, employers must begin using Form 8822-b, Change of Address-Business, to report any changes in their business address.
Publication 15 (Circular E), Employer’s Tax Guide can be downloaded from the IRS website. Additionally, the IRS has set up a page where they will post future developments that may affect Publication 15.
The material contained on this page is for informational purposes only and is current as of the date of publication. CompuPay is not a legal, tax or financial adviser and makes no claims as such. For tax, financial or legal advice, please seek a professional.