Wednesday, November 9th, 2011

Michigan 2012 Withholding Tables – Payroll Software

The Michigan payroll withholding tables will remain the same for tax year 2012. A new rate will be in effect starting January 1, 2013.

Michigan 2012 withholding rate: The rate remains at 4.35 % for tax year 2012.

For 2013 and each tax year thereafter the rate is 4.25%.

Michigan employers and tax professionals are invited to check out our 2012 payroll software. Payroll Mate provides best value in payroll software for both businesses and accountants.

Personal exemption will remain the same at $3,700 and will be indexed to inflation beginning in 2013.

Also starting in 2013, new legislation phases out personal exemption for taxpayers with “total household resources” over $75,000 for single filers and $150,000 for joint filers. And eliminates personal exemption for taxpayers with total household resources over $100,000 for single filers and $200,000 for joint filers.

Every Michigan employer must obtain a Withholding Exemption Certificate (Form MI-W4) from each employee. The federal W-4 cannot be used in place of the MI-W4. The 2011 exemption amount is $3,700 per year times the number of personal and dependency exemptions allowed under the internal revenue code. An employee may not claim more exemptions on the MI-W4 than can be claimed on the employee’s federal income tax return.

For more information please visit the website of Michigan department of treasury at .


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Wednesday, November 9th, 2011

Delaware 2012 Withholding Tables – Payroll Software

Effective January 1, 2012 with Delaware state withholding tables will be updated. Please make sure to update your copy of Payroll Mate payroll software to use the 2012 Delaware withholding tables.

The Delaware tax rate for income over $60,000 drops to 6.75% for tax years 2012 and 2013, and drops to 5.95% in 2014.

Taxable income Calculate tax on Tax amount Rounded Tax years
12,345 12,325 261 + 111.6 373 2010 – 2011
27,555 27,575 1001 + 142.9125 1144
75,000 75,000 2943.50 + 1042.50 3986 2010 – 2011
2943.50 + 1012.50 3956 2012 – 2013
2943.50 + 892.50 3836 2014 –
82,605 82,605 2943.50 + 1571.05 4515 2010 – 2011
2943.50 + 1525.84 4469 2012 – 2013
2943.50 + 1345.00* 4289 2014 –



An employer may withhold taxes according to the withholding tax tables provided in the Delaware Withholding Rules and Regulations Booklet or use any approved formula to determine the correct amount of tax to be withheld each pay period. The employer must withhold at a rate so that no tax is estimated to be due on the wages paid when the employee files his or her personal income tax return. The Delaware Division of Revenue will approve an alternate formula that considers the allowable standard deduction and tax credit(s) claimed by the employee, using the tax rate schedule on the balance of the wages paid.

If you prepare payroll taxes for Delaware employees you invite you try our Payroll Mate payroll software. You can visit the link below to download a FREE trial.


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Wednesday, November 9th, 2011

New York 2012 Withholding Tables

The New York Department of Taxation and Finance released new withholding tables for NY State and Yonkers, effective January first 2012. The amendments change the payroll tax withholding tables in accordance with the NY income tax rate changes for tax years beginning after 2011 necessitated by Chapter 57 of the Laws of 2009, reflecting the return to the highest personal income tax return rate of 6.85 percent.

The amendments also reflect the implementation of the City of Yonkers 15 percent income tax surcharge on residents over a twelve-month period, rather than the shorter implementation period required for tax year 2011.

The New York state supplemental wage rate would be 7.65 percent, effective January 1, 2012, and the Yonkers supplemental wage rate would be 1.70975 percent, effective January 1, 2012.

Example based on the new 2012 withholding tables:
Weekly payroll, $400 gross wages, single, 3 exemptions
1. Amount from Table A is $191.90 for single, weekly payroll, 3 exemptions. $400 wages – $191.90 = $208.10 net wages.
2. Use Table II – A for single, weekly payroll. Look up $208.10 and use line 2 on which $208.10 is greater than Column 1 ($154) but less than Column 2 ($212).
3. $208.10 – $154 (from Column 3, line 2) = $54.10.
4. $54.10 x .0450 (from Column 4, line 2) = $2.43.
5. $2.43 + $6.15 (from Column 5, line 2) = $8.58. Withhold this amount.


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Tuesday, November 8th, 2011

California 2012 Withholding Tables | CA 2012 SDI Rate | CA 2012 UI Rate | CA 2012 ETT Rate

California 2012 Personal Income Tax (PIT) Withholding

The California Employment Development Department (EDD) has issued new California payroll withholding tables Effective January 1, 2012. The department has updated METHOD A – WAGE BRACKET TABLE METHOD and METHOD B – EXACT CALCULATION METHOD.

Method A is limited to wages/salaries less than $1 million and provides a quick and easy way to select the appropriate withholding amount, based on the payroll period, filing status, and number of withholding allowances.

Method B, which is typically used by payroll calculation software, may be used to calculate withholding amounts either manually or by computer.

For 2012, the California tax rate will remain the same at 6.6% for supplemental wages and 10.23% for stock options and bonus payments. You can learn more about California payroll withholding rates by referring to DE 44 (California Employer’s Guide).

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California 2012 Unemployment Insurance (UI) Rate

The California UI taxable wage limit for 2012 is $7,000 per employee, per year. The UI tax rate for new employers is 3.4 percent (.034) for up to three years.* The UI tax rate for experienced employers varies based on each employer’s experience and the balance in the UI Fund. The 2012 maximum UI weekly benefit award is $450.

California 2012 Employment Training Tax (ETT) Rate

The California 2012 ETT rate is 0.1 percent (.001) of the first $7,000 per employee, per year.

California 2012 State Disability Insurance (SDI) Rate

The California  2012 SDI tax rate, which includes Disability Insurance (DI) and Paid Family Leave (PFL), is 1.0 percent (.01). The SDI taxable wage limit is $95,585 per employee, per year.* The 2012 maximum weekly DI/PFL benefit award is $1,011.


Sunday, January 16th, 2011

Illinois Payroll: Illinois Tax Hike | Illinois Tax Increase


Our Payroll Mate payroll tax software has been updated to include the latest Illinois withholding tables, which reflect the recent Illinois tax increase. Effective January 1, 2011, the rate for withholding Illinois Income Tax is 5 percent. The Illinois payroll tax hike was passed by Illinois lawmakers on Wednesday January, 12, 2011.

 Illinois 2011 Payroll, Illinois 2011 Tax Hike, 2011 Illinois Tax Increas

According to a new Illinois Department of Revenue bulletin released last Thursday, Illinois employers and payroll departments must now immediately adjust withholding tax rates to reflect the Illinois Income Tax rate increase from 3% to 5%, effective January 1, 2011.

The new Illinois rate of withholding applies to Employee compensation (i.e., wages and salaries) paid in Illinois, Unemployment paid to an Illinois resident who has asked to have Illinois taxes withheld, and Gambling or lottery winnings in Illinois paid to an Illinois resident.

Booklet IL-700-T, Illinois Withholding Tax Tables, has been updated to reflect the tax increase.


You pay Jane $800 every week. She claims 4 allowances on her Form IL-W-4. Two allowances are claimed on Form IL-W-4, Line 1, and two allowances are claimed on Form IL-W-4, Line 2. You withhold $34.23 from her pay.
Step 1: Determine the wages paid: $ 800.00
Step 2: Figure your employee’s exemptions (based on Form IL-W-4): $115.38
Step 3: Subtract the amount exempt from withholding. Taxable amount: $684.62
Step 4: Multiply by the tax rate x 0.05. Tax withheld = $ 34.23

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 to prepare payroll and track payroll taxes and then post payroll data to QuickBooks at the end of the pay period. Payroll Mate is currently used by small businesses, accountants, businesses, CPAs, churches, banks, professional tax preparers and payroll service providers.

To learn more about our payroll software, please visit