The Philadelphia Revenue Department announced the following wage/earnings tax rates for the first half of 2012. Specifically, the tax rate for January 1, 2012 through July 31, 2012 is:
Residents............3.928%
Nonresidents.......3.4985%
2012 Social Security Update
The maximum taxable wage base for Social Security for 2012 will rise to $110,100 from $106,800. As such, the maximum tax will increase by $204.60 to $6,826.20. Monthly Social Security benefits will increase 3.6 percent, increasing the average monthly benefit to $1,229 from $1,186. For retirees under full retirement age, the retirement earnings test exempt amount will rise to $14,640 from $14,160. For every $2 of earnings above this limit, $1 of benefits will be withheld.
2012 Mileage Rates
Effective January 1, 2012, the Standard Mileage Rates are revised as follows:
Business Rate = 55.5 cents per mile
Medical and Moving Rate = 23 cents per mile (down from 23.5 cents)
The Charitable Rate remains unchanged at 14 cents
Congress Passes Temporary Payroll Tax Cut Extension
At the eleventh hour, Congress approved a two-month extension of the employee-side payroll tax cut in the Temporary Payroll Tax Cut Continuation Act of 2011. The two-month exension, for January and February 2012, is intended to give lawmakers additional time to negotiate a full-year extension of the payroll tax cut through the end of 2012.
Pennsylvania Employers: Prepare Now for Changes to Local Earned Income Tax (EIT) Collection
Dateline: November 2011
Reforms to Pennsylvania's local Earned Income Tax (EIT) collection system affect Pennsylvania employers and may bring some additional revenue to local school districts and municipalities. Consolidation of the EIT means employers will no longer have to remit taxes to multiple tax collectors. The tax currently being collected by each municipality's chosen tax collector is being centralized on a countywide basis, effectively shrinking the number of tax collectors statewide from 560 to no more than 69. However, the related administrative changes place additional responsibility on employers that can be costly and burdensome without proper planning. Employers should take action now to prepare for the change and avoid penalties.
Pennsylvania Department of Revenue Reminds Cyber Monday Shoppers to Pay Use Tax
Dateline: November 23, 2011 - HARRISBURG
Press Release from the PA Department of Revenue:
Shoppers planning to take advantage of Cyber Monday Internet sales on Nov. 28 are reminded to check receipts for sales tax charges, and save purchase records not reflecting sales tax to facilitate payment of use tax in the new year, Department of Revenue Secretary Dan Meuser said today.
