Payroll Tax Cut

Sunday, December 4th, 2011

Payroll Tax Cut 2012

While businesses and payroll departments around the country wait for the results of the debate on the 2012 payroll tax cut, our Payroll Software engineers are planning for the different scenarios.

No matter what the lawmakers decide, Payroll Mate will be among the very first payroll applications to implement the new changes.

The following scenarios are currently being explored:

1. The 2 point cut in the employee portion of social security tax expires on December 31, 2011 and the rate goes up to 6.2% (the rate for 2011 is 4.2%).

2. The current 4.2 percent employee social security rate gets extended until the end of 2012.

3. The employee portion of social security tax gets reduced to 3.1 percent (from 4.2%) for 2012 with no change on the employer portion which is currently 6.2%.

4. The social security tax gets reduced to 3.1 % for both the employee and employer.

The current 2011 payroll tax cut, enacted as part of the “stimulus package” in 2010, has affected the paychecks of employees by reducing their portion of Social Security taxes from 6.2% of gross pay to 4.2%. A family with income of $50,000 a year would pay $1,000 more in payroll taxes if Congress does not act by the end of 2012 to extend that reduction.

Payroll Mate is trusted by thousands of businesses and accountants nationwide. Download a free demo today and see for yourself how easy payroll processing can be. Payroll Mate is only $119 for one whole year.

 

Payroll Mate Best Value in Payroll Software

 

Sunday, December 19th, 2010

Payroll Tax Cut | Payroll Tax Reduction | 2011 Payroll Software

 

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

 

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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.