Vision Payroll

The Arizona Department of Economic Security has announced the taxable wage base for 2011. The wage base will remain at $7,000 for 2011.

Some Tax Rates Adjusted Slightly for 2011

Employer rates will go from a low 0.02% for employers with a positive ratio of 13% or more to a high of 5.86% for employers with a negative ratio of 13% or more. The new employer rate remains at 2.00% for 2011.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on Arizona unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

This week’s question comes from Adrienne, a sales manager. I normally earn in excess of the FICA limit ($106,800 in 2010 and 2011). I know the social security withholding rate has been reduced for 2011. What is the maximum amount of social security withholding tax  (sometimes called FICA tax)for 2011? Answer: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (2010 Tax Act) reduced the rate for social security withholding tax (sometimes called FICA tax) from 6.2% to 4.2%. Since the wage base remains at $106,800, the maximum social security withholding tax for 2011 by one employer from one employee will be $4,485.60 ($106,800 X 4.2%).

Employer Withholding Rate Remains at 6.2%

There was no change in the rate of social security tax paid by an employer on an employee’s wages. Since the rate remains 6.2%, the maximum employer social security tax for 2011 by one employer for one employee will be $6,621.60 ($106,800 X 6.2%).

Employees May Have More Withholding if They Have Two or More Jobs

The wage base is generally applied on an employer-by-employer basis. Employees who earn more than $106,800 combined at two or more jobs could have social security withholding in excess of $4,485.60 in 2011. Withholding will stop at a job only when the employee reaches the maximum at each individual job. There are exceptions to this rule for situations such as common paymasters and successor employers.

Employees Can Receive Credit on Form 1040 for Excess FICA Withholding

Even though the employer must pay the full tax and withhold it from the employee, amounts withheld above the maximum can be claimed as a credit on Form 1040. For tax year 2010, enter any excess FICA tax withheld by two or more employers on line 69 of Form 1040 and reduce your balance due or increase your overpayment by the amount of the excess.

Contact Vision Payroll for More Information on Social Security Withholding Tax

Contact Vision Payroll if you have any questions on social security withholding tax or visit our Important Facts and Figures page for further information.

The Illinois Department of Employment Security has announced an increase in the taxable wage base for 2010. The wage base will increase from $12,520 for 2010 to $12,740 for 2011.

Minimum and Maximum Rates Also Increase

The minimum employer rate for 2011 will increase to 0.700% from 0.650% and the maximum rate for 2011 will increase to 8.400% from 7.250%

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Illinois unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

The Utah Department of Workforce Services has announced an increase in the taxable wage base for 2010. The wage base will increase from $28,300 for 2010 to $28,600 for 2011.

Minimum Tax Rate Doubles

The minimum tax rate has doubled from 0.2% for 2010 to 0.4% for 2011.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Utah unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

The Hawai’i Department of Labor and Industrial relations has announced that the taxable wage base will decrease from $34,900 in 2010 to $34,200 for 2011. The contribution rate schedule will change from “D” to “F”.

New Employer Tax Rates to Increase

The tax rates for new employers will increase from 3% to 4%, but the Employment & Training Assessment Rate will remain at 0.1%

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Hawai’i wage base and rate changes or visit our Unemployment Taxable Wage Base page.

The Oregon Employment Department has announced an increase in the taxable wage base for 2011. The wage base will increase from $32,100 for 2010 to $32,300 for 2011.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Oregon unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

The Pennsylvania Department of Labor & Industry has announced the taxable wage base for 2011. The wage base will remain at $8,000 for 2011.

Wage Base Does Not Apply To Employee Withholding

Pennsylvania employees are subject to withholding for unemployment tax. The withholding rate of 0.08% of taxable wages will not change from 2010. There is no wage base for withholding, however; all taxable wages are subject to withholding at this rate.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on Pennsylvania unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

The South Carolina Department of Employment and Workforce has announced that pursuant to SC General Assembly Bill 391, the taxable wage base will increase for 2011. The wage base will increase from $7,000 for 2010 to $10,000 for 2011.

Further Increases Are Already Scheduled for 2012 and Beyond

The wage base is scheduled to increase to $12,000 for 2012 through 2014 and to $14,000 for 2015 and later years.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the South Carolina unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

The Minnesota Department of Employment and Economic Development has announced the taxable wage base for 2011. The wage base will remain at $27,000 for 2011.

New Employer Tax Rates to Increase

The tax rates for new employers will increase from 1.91% to 2.41% for new employers in non-high experience rating industries and will increase from 8.00% to 8.90% for new employers in high experience rating industries.

Federal Loan Interest Assessment Set at 2%

A federal loan interest assessment of 2% will take affect for 2011. This is calculated by multiplying the sum of the employer’s tax and “Additional Assessment” of 14% by 2%.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on Minnesota unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

The Colorado Department of Labor and Employment has announced that since the UI Trust Fund balance as a percentage of the total wages reported by ratable Colorado employers was less than zero, the solvency surcharge would be assessed for rate year 2011.

UI Trust Balance Must Not Be Less than 0.9% of Total Wages

Whenever the UI Trust Fund balance is less than nine-tenths of one percent of the total wages reported by ratable Colorado employers, the solvency surcharge remains in effect.

Only Certain Employers Are Assessed the Solvency Surcharge

The solvency surcharge is not assessed to state and local government agencies, reimbursable and group-rated political subdivisions, and nonprofit organizations that are reimbursable employers.

Colorado Wage Base to Remain at $10,000 for 2011

The taxable wage limit is $10,000 per employee in 2011.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Colorado unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.