CROSSE-OVER/OPEN SYSTEMS FEDERAL TAX UPDATE

 

Effective for all payrolls paid on or after January 1, 2012, the federal tax tables need to be updated.  Follow the procedure outlined below.  Only perform this update AFTER you have performed your Year-End periodic maintenance in Payroll for ALL companies.

 

The table changes represent an adjustment for inflation.

 

LAST MINUTE:  The employee FICA tax decrease put in effect one year ago has been extended.  So the employee FICA rate will remain 4.2%.

 

You should perform this maintenance AFTER you have done your Year-End Maintenance in payroll for all companies, and you should be in the current year when you do it.  This should be done before you calculate your first check of the New Year.  These changes only need to be done in one company.  (Tax Tables are shared among companies.)

 

 

1.  Choose File Maintenance from the Payroll Menu.

 

2.  Choose Tax Tables from the File Maintenance Menu.

 

3.  Enter the table ID FEDM, FEDS, FICA, one at a time.

 

4.  Enter the appropriate table data found below.

 

5.     After making changes, press <PgDn> or <OK> to save changes to each table.

 

CAUTION:  The last line of a tax table usually has the upper limit defined with a series of nines.  In most cases, this number is eight nines, followed by a decimal and two nines, 99999999.99.  In some systems this could be nine nines instead of eight.  It is imperative that you match the correct number of nines for your system.  This is more than just a numeric value; it has to be the specific numeric value as defined by your formula for the tax calculation to work correctly.  So don’t be creative, match the number exactly as it has been in the past.  This comes into play most often when the number of brackets change and you must move the line with the nines up or down.

 

You should always check your first payroll after you have changed the tables to make sure the taxes make sense.  You can use IRS publication 15 to proof that the taxes are appropriate for any individual.

 

JANUARY 2012 ANNUAL TAX TABLES

 

FEDM

*---------------------------------- PATX -------------------------------------*

| Table ID FEDM       Description Federal Income Tax: Married Table           |

| Number of Cols   3  Column Length  12     Type  N                           |

|  Over ---       Base     + % Over                                           |

|------------ ------------ ------------                                       |

|         .00          .00          .00                                       |

|     8100.00          .00        10.00                                       |

|    25500.00      1740.00        15.00                                       |

|    78800.00      9735.00        25.00                                       |

|   150800.00     27735.50        28.00                                       |

|   225550.00     48665.50        33.00                                       |

|   396450.00    105062.00        35.00                                       |

| 99999999.99      3800.00          .00                                       |

|         .00          .00          .00                                       |

|         .00          .00          .00                                       |

|         .00          .00          .00                                       |

|         .00          .00          .00                                       |

|                                                                             |

*- Company 1 -----------------------------------------------------------------*

 

FEDS

*---------------------------------- PATX -------------------------------------*

| Table ID FEDS       Description Federal Income Tax: Single Table            |

| Number of Cols   3  Column Length  12     Type  N                           |

|  Over ---       Base     + % Over                                           |

|------------ ------------ ------------                                       |

|         .00          .00          .00                                       |

|     2150.00          .00        10.00                                       |

|    10850.00       870.00        15.00                                       |

|    37500.00      4867.50        25.00                                       |

|    87800.00     17442.50        28.00                                       |

|   180800.00     43482.50        33.00                                       |

|   390500.00    112683.50        35.00                                       |

| 99999999.99      3800.00          .00                                       |

|         .00          .00          .00                                       |

|         .00          .00          .00                                       |

|         .00          .00          .00                                       |

|         .00          .00          .00                                       |

|                                                                             |

*- Company 1 -----------------------------------------------------------------*

 

 

FICA

*---------------------------------- PATX -------------------------------------*

| Table ID FICA       Description OASDI and Medicare Tables                   |

| Number of Cols   6  Column Length  12     Type  N                           |

|    Employee  FICA            Employer FICA         Min. Wage    DCB Limit   |

|------------ ------------ ------------ ------------ ------------ ------------|

|        4.20    110100.00         6.20    110100.00         7.25      5000.00|

|        1.45  99999999.99         1.45  99999999.99          .00          .00|

|         .00          .00          .00          .00          .00          .00|

|         .00          .00          .00          .00          .00          .00|

|         .00          .00          .00          .00          .00          .00|

|                                                                             |

*- Company 1 -----------------------------------------------------------------*

NOTE:  if your state minimum wage is higher than the federal minimum, then you should replace the 7.25 in the min. wage column with your state minimum.