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Payroll Mate payroll software has been approved by the California Employment Development Department (EDD) to generate and print California payroll forms DE 9 and DE 9C. Employers and payroll departments in the state of California can use our California Payroll software to file the new forms starting first quarter 2011.

Several important payroll tax reporting changes will take place beginning with the first quarter of 2011. The California Annual Reconciliation Statement (DE 7) will be eliminated for the tax year 2011. California employers will file the NEW Quarterly Contribution Return and Report of Wages (DE 9) to report contributions due each quarter. In addition to the DE 9, employers will file a Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) in place of the Quarterly Wage and Withholding Report (DE 6).

Each quarter, California employers are required to complete a Quarterly Contribution Return and Report of Wages (DE 9). It is used to reconcile California payroll tax payments and the total subject wages reported for the quarter. The payroll form is due January 1, April 1, July 1, and October 1 each year.

California employers use the Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) to report employee wages subject to Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and to report Personal Income Tax (PIT) withheld and PIT wages.

If you use QuickBooks or Quicken to manage your business and you’ve been searching for payroll software that integrates with QuickBooks, then Payroll Mate is definitely for you. With the advanced features in this payroll solution, SMBs can save a bundle by using Payroll Mate as QuickBooks payroll software to prepare payroll and track payroll taxes and then post payroll data to QuickBooks or Quicken at the end of the pay period. Payroll Mate is currently used by accountants, businesses, CPAs, churches, banks, professional tax preparers and payroll service providers.

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The FICA rates have changed for tax year 2011. Our small business payroll software has been updated to reflect these changes. If you are an employer, small business or payroll service provider you can use Payroll Mate to comply with the new payroll tax calculations.

Below are the 2011 FICA Rates:

Employee Social Security 2011 FICA Rate: 4.2% (in 2011 the employee rate does not match the employer one)

Employer Social Security 2011 FICA Rate: 6.2%

Employee Medicare 2011 FICA Rate: 1.45%

Employer Medicare 2011 FICA Rate: 1.45%

The maximum amount of wages subject to the social security tax for 2011 is $106,800. There is no limit on the amount of wages subject to the Medicare tax.

FICA stands for the Federal Insurance Contributions Act.  FICA taxes are comprised of two separate taxes, social security and Medicare taxes that are paid on wages earned for services performed.  Employers withhold and pay their employees’ share of the FICA taxes and also pay the employer share. FICA is imposed by federal government to fund Social Security and Medicare federal programs. Employers should implement the 4.2% employee social security tax rate as soon as possible, but not later than January 31, 2011. After implementing the new 4.2% FICA rate, employers should make an offsetting adjustment in a subsequent pay period to correct any over withholding of social security tax as soon as possible, but not later than March 31, 2011.

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Below is a summary of the main Payroll Tax Changes for 2011 including 2011 Federal Tax Tables and 2011 State Payroll Tax. Our payroll software allows small businesses and accountants implement the new payroll changes easily and stress FREE.

2011 Federal Withholding Tables

The 2011 Federal Income Tax tables issued by the IRS reflect the extension of the Bush-era tax cuts and the expiration of “Making Work Pay Tax Credit” included in the “The American Recovery and Reinvestment Act of 2009″.  Some employees will see an increase in their Federal Income Tax Withholding in 2011 due to the expiration of “Making Work Pay Tax Credit”.

2011 Social Security Tax and 2011 Medicare Tax Rates

For 2011, the employee tax rate for social security is 4.2%.

The employer tax rate for social security remains unchanged at 6.2%.

The 2011 social security wage base limit is $106,800.

In 2011, the Medicare tax rate is 1.45% each for employers and employees, unchanged from 2010. There is no wage base limit for Medicare tax.

Employers should implement the 4.2% employee social security tax rate as soon as possible, but not later than January 31, 2011.

2011 Advance payment of earned income credit (EIC).

The option of receiving advance payroll payments of EIC expires on December 31, 2010. Individuals eligible for EIC in 2011 can still claim the credit when they file their 2011 federal income tax return.

State Withholding Tables as of January 1 2011 (some states might update their tables during January 2011 or later in the year) .

Alabama 2011 Withholding

No Change so far for tax year 2011
 

Arizona 2011 Withholding

 Withholding requirements have been updated.

California 2011 Withholding

CALIFORNIA WITHHOLDING SCHEDULES FOR 2011 have been updated. 

Connecticut 2011 Withholding

Withholding tables stayed the same.

DC 2011 Withholding

 New Withholding Allowances for the Year 2011

Hawaii 2011 Withholding

New  HAWAII INCOME TAX WITHHOLDING RATES, METHODS, AND TAX TABLES Effective January 1, 2011, through December 31, 2015

Idaho 2011 Withholding

 No Change so far for tax year 2011

Illinois 2011 Withholding

 No Change so far for tax year 2011

Iowa 2011 Withholding

 No Change so far for tax year 2011

Kansas 2011 Withholding

 No change. The withholding tables you will need to compute the amount of Kansas tax to withhold for each employee or payee have been in effect since January 1, 1999.

Kentucky 2011 Withholding

2011 Kentucky Tax Rate Schedule
2% of the fi rst $3,000 of net income
3% of the next $1,000 of net income
4% of the next $1,000 of net income
5% of the next $3,000 of net income
5.8% of the next $67,000 of net income
6% of the net income in excess of $75,000

Maine 2011 Withholding

 New tables for 2011. Amount Per Withholding Allowance (for monthly employees) is $237.50 .

Michigan 2011 Withholding

 New 2011 withholding tables : Withholding Rate: 4.35% Personal Exemption Amount: $3,700

Minnesota 2011 Withholding

 New withholding tables: Withholding allowance for 2011 is $3,700.

Missouri 2011 Withholding

There is a new 2011 MISSOURI WITHHOLDING TAX FORMULA. STANDARD DEDUCTION — Annual amount is: $5,800 if employee is single, $5,800 if employee is married and spouse works, $11,600 if employee is married and spouse does not work (this is determined by the check box on Form MOW-4, Line 2, and is not a separate filing status), $8,500 if employee’s filing status is Head of Household. MO W-4 ALLOWANCES — Annual amount is:$2,100 for the first allowance and $1,200 for each additional allowance if employee is single or married and spouse works, $2,100 for the first allowance, $2,100 for the second allowance (for the nonworking spouse) and $1,200 for each additional allowance if the employee is married and spouse does not work; $3,500 for the first allowance and $1,200 for each additional allowance thereafter if the employee’s filing status is Head of Household.

Montana 2011 Withholding

No Change so far for 2011.

New Jersey 2011 Withholding

No Change so far for tax year 2011.

New Mexico 2011 Withholding

NEW MEXICO has issued new withholding tables. The Annual withholding allowance is $3,750.00. 

North Carolina 2011 Withholding

The N.C DOR has issued new  Income Tax Withholding Tables and Instructions for Employers. There have been no changes in withholding tables.

North Dakota 2011 Withholding

New withholding rates effective for wages paid on or after January 1, 2011.

Ohio 2011 Withholding

 No updates so far.

Oklahoma 2011 Withholding

 New withholding tables for 2011. Amount of Each Annual Withholding Allowance is $ 1,000.00.

Oregon 2011 Withholding

New tables. The updated Oregon Withholding Tax Formulas reflect the last phase of increasing the federal tax subtraction to $5,950 and changes due to recently enacted legislation. Employees may notice a change in the amount of Oregon tax withheld.

Rhode Island 2011 Withholding

New tables effective January 1, 2011. For annual payroll periods the Amount of one Withholding exemption is 1,000.00. HOWEVER, IF: Annual wages are more than 195,000.00 the Amount of one withholding exemption is $0.00 .

Utah 2011 Withholding

 New withholding tables for 2011.

Vermont 2011 Withholding

New withholding tables for 2011. One withholding allowance equals $3700.00

Wisconsin 2011 Withholding

No Change so far for 2011

The following states do not have personal income tax: Alaska, Florida, Nevada , New Hampshire, South Dakota, Tennessee, Texas, Wyoming and Washington.

If you still do payroll manually or you are looking for an affordable, yet reliable payroll software you might be interested in trying our Payroll Mate software. Click the link below  for a FREE trial.

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2011 Payroll Software from PayrollMate.com Updates Payroll Withholding Tables to Include Changes Introduced by The Tax-cut Bill.

Payroll Mate Payroll Software makes it easy for accountants, businesses and payroll staffs to comply with the new IRS payroll tax withholding changes introduced by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

For 2011, the employee tax rate for social security is 4.2%. The employer tax rate for social security remains unchanged at 6.2%. The 2011 social security wage base limit is $106,800. In 2011, the Medicare tax rate is 1.45% each for employers and employees, unchanged from 2010. There is no wage base limit for Medicare tax. Employers should implement the 4.2% employee social security tax rate as soon as possible, but not later than January 31, 2011.

All users of Payroll Mate 2011 will get the new payroll updates for free. The software maker is also advising small businesses that are still doing payroll by hand to start using a payroll software solution, which offers serious benefits, from increased payroll preparation efficiency to tangible cost savings.

Payroll Mate makes doing payroll easy, smooth, predictable, and of course affordable through a set of powerful and flexible payroll management capabilities that allow small businesses to operate smarter and save money.

A free demo of the payroll software is available here:

FREE Payroll Software Download

Employer and Accountants can learn more about Payroll Mate by visiting the payroll software page.

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Employers in Oregon are required to follow Oregon payroll laws and regulations even when using an Oregon payroll service or accountant. 

Our Payroll Software calculates Oregon payroll taxes and gives employers everything they need to prepare Oregon payroll. A FREE payroll software trial can be downloaded from the link below.
 

Oregon Payroll Laws- 2011 tax rates:Employment: New employer rate: 3.3%
Wage base rate: $32,300
Workers Benefit Fund: No change in rate: 2.8 cents per hour
Transit taxes:
TriMet: 0.006918
Lane: 0.0067 

Oregon Payroll Laws- Electronic W-2 and W-2 Filing 

Effective for calendar year 2010, businesses with 50 or more employees and all payroll service providers are required to report W-2 information electronically. The transmittal due date is March 31, 2011. Only Form W-2 are filed electronically; paper W-2s or other forms of media are not accepted. Note: Although employers are not required to submit paper copies of W2 information, it is important to keep copies in case you are requested to do so at a later date. 

Oregon employers can use our W2 Software to print and eFile Oregon and SSA W2 Forms. To learn more you can visit our W2 Software page. 

Oregon Payroll Laws-Outsourcing Payroll:
 

When outsourcing payroll, whether using a Oregon payroll service provider or Oregon bookkeeping firm, it is important to be aware of the following: 

A. The employer is ultimately responsible for correctly reporting and paying state and federal payroll taxes, even if the third party is making the deposits. Be sure that your payroll provider has up to date information to correctly file and pay all payroll tax obligations. Even if the third party payroll provider fails to correctly report and pay all payroll tax obligations, the employer is still held liable for any penalties and interest that is assessed. 

B. Periodically review your account to make sure everything is current and up to date. Contact the different tax agencies if needed to verify that your account is current. 

C. If there are issues on the account, correspondence is always sent to the employer address on record. Make sure that you report any address changes so that you are kept informed of any tax matters involving your business.

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