2013 US Payroll Tax Update - Round 2

The Federal 2013 Tax Tables have released - http://www.irs.gov/pub/irs-pdf/n1036.pdf.

The Round 2 2013 US Payroll Tax Update is scheduled to release mid-week next week (table only).  We will let you know when it is officially released.

Below is a list of changes to be included in Round 2:

• Federal (Single, Married & Nonresident Alien filing status) (Social Security and Medicare changed in round 1)
• Colorado
• Connecticut
• Georgia
• Hawaii
• Illinois
• Maine
• Oklahoma
• Oregon
• Puerto Rico
• Rhode Island

If you have any questions, please contact support@collinscomputing.com or call (888) 391-6690.

2013 Round 1 US Payroll Tax Update

Happy New Year!

Below is information from Microsoft on the most recent changes:

1. The Employee FICA rate will go up to 6.2 ...this was not part of the fiscal disaster this weekend; this is the rate currently on our 2013 tax tables we released on Friday 12/21/2012.  If you have already installed Round 1 then there is nothing more to do until the next release as stated in #2 below.
2. Microsoft is waiting for the final publication to be released for Federal and then they will release the Round 2 Payroll Tax Update with all Federal and State changes currently pending, so far only table changes.
3. Regardless of whether you are on the below list of states, you will need to have the Round 1 update because of the FICA changes.

States Included:

• California
• Kansas
• Kentucky
• Maryland
• Minnesota
• Nebraska
• New York
• North Dakota
• Yonkers
• FICA Employee Social Security limit $113,700
• FICA Employee Social Security Rate 6.2
• 2013 New Employee Medicare Taxes on High Earners (after $200,000) extra .9 (2.35)

This update will be on the automatic server/download too...so be CAREFUL as you continue to do updates, you can always revert back and Microsoft tax update pages have the 2012 tax tables on it too.

Once you install the update, the new date is 1/1/2013.

2012 tax tables MUST be loaded when you CREATE the year end wage file for the FICA SS and FICA MED to be correct and not cause validation errors for customers.

Contact support@collinscomputing.com if you run into any issues.

If you haven't already done Year End, CLICK HERE for Year End Procedures.

**NOTES**

There are more state changes but Microsoft has pushed those to Round 2 which is due to release around 1/21/2013.  This will have code changes.

If you have any questions or need help, please contact support@collinscomputing.com or call (888) 391-6690.