2012 Social Security Tax Update

2012 Social Security Tax Update

The 2011 Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provided a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduction was set to expire on December 31, 2011 however, on December 23rd, President Obama signed legislation that extends the 4.2 percent rate for the employee portion of Social Security tax into the first two months of 2012 (H.R. 3765).

• This legislation temporarily extends the Employee Social Security withholding rate of 4.2% through February 29, 2012.
• The bill also includes a measure requiring that those who are paid more than the pro-rata wage base of $18,350 (2/12s of the 2012 Wage Base of $110,100) recapture any tax relief amounts in excesses of the wage base on their 2012 personal income tax returns. This recapture is only in effect if Congress does not extend the reduced 4.2% rate for the full year.

Additional information can be found on IRS.gov website under the following link: IRS Newsroom Article.

Please call Outstaffing if you have any questions.

Outstaffing: It’s Convention Time Again!

Outstaffing will exhibit at the VAR and NCAR Conventions again this year.

Wow! The Greenbrier Resort

What a great place to hold the 2011 NCAR Convention. Outstaffing’s 14th.

Take care of yourself.

100% Covered!

Use your preventive care benefits.

Great news for Outstaffing employees… Due to changes in health care reform law and state regulations, all Outstaffing medical plans now include preventive care benefits! When you get these services from providers in the network, you don’t have to worry about paying anything out of your own pocket for covered preventive care such as screenings, immunizations and exams. You may have to pay part of the costs if you use a provider outside the network. 

Getting regular checkups and exams can help you stay well, catch problems early, and may be lifesaving.

 

The Outstaffing health plans cover 100% of the services listed in this flyer as preventive care.

 

Preventive Care versus  Diagnostic Care 

What’s the difference?

Preventive care is precautionary. Diagnostic care is used to find the cause of existing symptoms.

 For example, if your doctor suggests you have a colonoscopy because of your age, that’s preventive care. But, if your doctor suggests a colonoscopy to see what’s causing your symptoms, that’s diagnostic care and you may need to pay part of the cost (this is your “cost share”).

Employees can learn moreby reading out Preventive Care Flyer 

Canceled Debt – Is it Taxable or Not?

Canceled Debt – Is it Taxable or Not? Sometimes, yes. See what IRS says… http://ow.ly/4hy0E

It’s Tax Time Again… 14 Tips from the IRS

Make sure you know about the new tax law changes before starting your 2010 federal income tax return. http://go.usa.gov/g1y

Here’s why some employees and retirees may see changes in 2011 IRS payments and withholding http://go.usa.gov/g3Z

If you claimed exempt on 2010 Form W-4, Employee’s Withholding Allowance Cert, you must file a new W-4 http://go.usa.gov/YyA

It’s a common IRS question.  Do I have to file a tax return?  Watch the YouTube video for the answer http://t.co/aXi7MAs

10 things the IRS wants you to know about claiming credit for child and dependent care expenses. http://go.usa.gov/4TC

Earned Income Tax Credit helps working people make life easier for over 35 years. Are you one of them? Check out http://go.usa.gov/1VW

If you change your home or business address, make sure to update information with the IRS http://go.usa.gov/gEe

If you received Unemployment income for the first time, know the rules for reporting it on your tax return. http://go.usa.gov/1NK

Need an IRS form or publication? Go on-line, anytime! http://go.usa.gov/1in

Need a copy of your tax return or tax transcript? Order one at IRS.gov using the new “Order a Transcript” tool http://go.usa.gov/gBl

Use direct deposit, you can split your IRS tax refund into two or three accounts! You can buy savings bonds too! http://go.usa.gov/1Nj

Need help with tax information or filing? The IRS is here for you with many options. Check them out at http://go.usa.gov/rfx .

“What do I do?  I’m missing my W-2…” http://go.usa.gov/Yu2

Check out the new IRS Video Portal.  Use it to view free videos on many up-to-date tax topics. www.irsvideos.gov

Are Your Charitable Contributions Tax Deductible?

10 Tips from the IRS

ER, Urgent Care, Retail Clinic?

Which do I choose?

When you or a loved one is ill or hurt you want the right care and at the best price. Deciding where to go isn’t always easy. You may immediately think the emergency room (ER) is the place to go but this may not be the best choice depending upon your symptoms. At the ER*, true medical emergencies are

6 Ways to Avoid an IRS Tax Audit in 2011

Not to be the bearer of bad news, but the IRS is intensifying and expanding its tax return audit program.

A total of 1.58 million individual returns were audited in the 2010 fiscal year, nearly 11% more than the year before. (Back in 2000, the number of audits was only 600,000.) In all, just over 1% of all personal returns were audited last year.

And so while your odds of receiving an IRS audit are already about 1 in 100, there are a few ways you can minimize your risk — and potential headaches — even further.

Click here to read more!

SOURCE: Meredith Margrave; InvestingAnswers; February 1, 2011

The Alternative Minimum Tax Trap and How to Avoid It

The alternative minimum tax (AMT) was established in 1969 to ensure that every taxpayer, particularly wealthy individuals and corporations, pay at least some income tax each year. In 1970, the first year the AMT system went into effect, it ensnared 155 high-income households.

Today, it’s estimated that at least 4 million households will be forced to pay the higher tax — a 25,805% increase in AMT payers since 1970 versus a 52% increase in the population of the U.S. It’s also estimated that up to 39% of married couples with children will qualify for the AMT.

Click here to learn more!

SOURCE: Tina Orem; InvestingAnswers; Wednesday, April 14, 2010