FICA - Quick Update

[ELS Landscape]

Just cut the first payroll of the year.

If you have not heard but in the so called fiscal cliff deal they let the 2% FICA cut expire. This means you have to withhold the full 6.2% from the employee check. The amount the company have to pay has not changed. This also means the SE tax is up 2% as well.

Quickbooks is on this already. Checks cut payroll and bonus checks last week were different than those cut today.

Happy New Year.

[DanaMac]

It's amazing how many people - employees and employers both - didn't realize this. Employees withholdings are going to go back up due to it, but it's not an added tax or raise in rates. It was a temporary tax CUT for the last two years that is put back in place. Neither of my my employees realized until I told them, that as an employer, I have to match their SSI contribution, and even though their rate was cut, MINE stayed the same.

[ELS Landscape]

My new guy asked me about this just before break. I suppose one of the other employees told him. I make no bones about telling them that insurance is a percent based on wages. I tell them about SUTA / FUTA and FICA too.

They have a clue what I charge, particularly residential so it may seem like I am a fat cat. They also know about what the equipment cost, they purchase the fuel so they know that. I think they know I treat them pretty fair.

I wish I could pay them more.