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2002 PAYROLL TAX UPDATE Just a note to make you aware of the payroll tax withholding rates for wages paid on or after January 1, 2002. FICA (Social Security) 7.65 % on the first $84,900 gross wages. There is an additional 1.45% Medicare tax on wages from $84,900 - Unlimited. FWT (Federal Income Tax) A new booklet with the various withholding tables should have been forwarded to you in late December. Extra booklets are available by calling us or going to the local IRS office. Of course, it may be easier to merely purchase inexpensive charts, covering federal and state withholdings, from your local office supplier. PCWT (Phil. City Wage Non-residents - 3.9462% of gross wages. Tax) Residents – 4.5385% of gross wages. NJGIT (NJ Gross Income Tax Rates: Tax) Singles and Married Filing Separately Taxable income not over $20,000 1.4% Over $20,000 but not over $35,000 1.75% Over $35,000 but not over $40,000 3.5% Over $40,000 but not over $75,000 5.525% Over $75,000 6.37% Married and Single Heads of Household Taxable income not over $20,000 1.4% Over $20,000 but not over $50,000 1.75% Over $50,000 but not over $70,000 2.45% Over $70,000 but not over $80,000 3.5% Over $80,000 but not over $150,000 5.525% Over $150,000 6.37% PAGIT (PA Gross Income 2.8% of gross wages. Tax) NJUC (NJ Unemployment)
.925%
(.00925) on the first $23,500 in gross wages. PAUCC (PA Unemployment)- THERE IS NO EMPLOYEE WITHHOLDINGS PAYROLL TAX DEPOSIT RULES Quarterly, Monthly, Semi-Weekly. (Notices of status sent by the IRS.) - Quarterly: Businesses can make their payroll tax payments quarterly with the filing of Form 941 if the tax is less than $2,500. Monthly: If the business has reported $50,000 or less in payroll taxes in the look back period of July 1, 2000 to June 30, 2001, only one deposit per month is due. This must be made by the 15th of the following month. SEMI-WEEKLY: If the accumulated tax liability is greater than $50,000 for the annual base period and the check date is Wednesday, Thursday or Friday - deposit the following Wednesday. If the check date is a Saturday, Sunday, Monday or Tuesday - deposit the following Friday. ELECTRONIC Employers with $200,000 or more in federal tax deposits for the determined period of 2000 must pay their Federal Tax Liabilities through the Electronic Federal Tax Payment System. MINIMUM WAGE INFORMATION: Federal Tax: Minimum Wage is $5.15 Minimum Wage with Tips is $2.13 New Jersey: Minimum Wage is $5.15 Minimum Wage with Tips is $2.13 Pennsylvania: Minimum Wage is $5.15 Minimum Wage with Tips is $2.83 New Jersey Department of Labor suggests $3.03 per hour for minimum wages with tips. However, the actual minimum wage can be as low as $2.125 per hour so long as the combination of cash wages and tips are equal to $5.15 per hour or greater. New
Hire Reporting On October 1, 1997, a new Federal regulation mandated all employers to report information about any new employee within 20 days of their hire date. These regulations were passed as a part of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 to help enforce child support rulings. Penalties for non-compliance can range from $25 to $500 per employee. New Jersey Requirements: Effective January 1, 1998
Who must report: · All employers with business operations in New Jersey Mandatory information to report: · Employee’s name, address, social security number and hire date · Employer’s name, address, and Federal ID number
Multi -state Employer Provision: (2 options) · Report employees to the state in which they work · Become a multi-state reporter, electronically reporting employees to one state Penalties: Legislation pending Mail or fax a copy of Federal Form W-4 information within 20 days of hire to: New Jersey New Hire Operations Center PO Box 4654 Trenton, NJ 08650-4654 FAX 1(800) 304-4901 For questions call the Office of New Jersey Child Support: 1-877-NJ-HIRES If you should have any questions, please feel free to contact us. |
