New MESC Quarterly Tax and Wage Detail Reports

MiWAM the Advent of MiWAM comes the elimination of manual data entry and the multiple forms employers must complete. Separate processes for the tax/payroll and wage detail reports have been consolidated into just one form.

Currently it takes six forms to report quarterly wage information to the UIA, but beginning with the 3rd quarter of 2012 (July 1 – September 30), employers will be relieved of six forms. The new Form UIA 1028-Employers’s Quarterly Wage/Tax Report, eliminates manual data entry by allowing you to import wage data from a text file.

The new Form UIA 1028 – replaces:

  • Form UIA 1017 – Quarterly Wage Detail Report
  • Form UIA 1019 – Amended Wage Detail Report
  • Form UIA 1020 – Employer’s Quarterly Tax Report
  • Form UIA 1020-R – Reimbursing Employer’s Quarterly Payroll Report
  • Form UIA 1021 – Amended Quarterly Tax Report
  • Form UIA 1021-R – Amended Reimbursing Employer’s Quarterly Payroll Report

MiWAM Toolkit Now Available Online!

The MiWAM toolkit, now available on the UIA web site will provide you with the information you need to successfully navigate MiWAM including:

  • Step-by-step instructions for logging onto MiWAM
  • How to navigate through MiWAM
  • Specs for setting up new bulk filing formats (for companies with 25 or more employees)
  • Information for service providers and Professional Employer Organizations (PEO’s)
  • Frequently Asked Questions
  • And much more…

Click here to view or download the MiWAM toolkit

Mileage Rates for 2012

IRS Posts Mileage Rates for 2012:

The IRS has announces that the standard mileage rate used by business drivers will remain at 55.5 cents per mile for 2012, the same as it was for the last six months of 2011.

 

 

Congress extends payroll tax cut for 2012

Payroll Tax Cut Extended

The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the payroll tax cut for employees, continuing the reduction of their social security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through February 29, 2012.

The Act also includes a new “recapture” provision, which applies to those employees who receive more than $18,350 in wages during the two-month period (the social security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year.

Congress obviously wants accountants and payroll preparers to earn their keep by allowing the tax cut to expire mid quarter, creating confusing and double the tax calculations.

Social Security Increases for 2012

Social Security Increase for Retirees, Disabled Persons and Surviving Spouses

Announced on October 19th, Social Security Benefits will see a Cost of Living Adjustment increase of 3.6 percent next year. This is the first increase in benefits since 2009. Starting in January 2012, 55 million Social Security recipients will get increases averaging $39 a month, or just over $467 for the year. In December, more than 8 million people who receive Supplemental Social Security Income, the disability program for the poor, will get increases averaging $18 a month, or about $216 for the year.

The annual Cost of Living Adjustment (COLA) is tied to an inflation measure. There were no COLA adjustments for 2010 or 2011 due to such a low rate of inflation. Those were the first two years there was no automatic COLA increase since they were enacted in 1975. Social Security recipients did however receive a one time $250 payment from the 2009 economic stimulus package.

Social Security Agency will pay out $727 billion in benefits to retirees, disabled people, surviving spouses and children this year. That makes the average payment $1,082 per person. The COLA adjustment will add between $25 and $30 billion more, giving retirees and disabled persons some additional spending money.

Unfortunately some of this increase will be lost to higher Medicare premiums, which are deducted from Social Security payment. Medicare Part B premiums are expected to rise in 2012, the new premium rates are expected to be announced some time this week.

Social Security Increase for Working Taxpayers

The maximum amount of wages subject to Social Security taxes is $106,800, this limit will increase to $110,100 in 2012.

In 2011 workers got a break on the amount of Social Security withheld from their paychecks, they were taxed at 4.2 percent down from the normal amount of 6.2 percent. The employer was still responsible for their portion, which remained at 6.2 percent.

The new rate for 2012 is unclear at this time, President Obama is pushing for another decrease to 3.1 percent, or it may remain at the lower 4.2 percent or revert back to 6.2 percent as it is scheduled under current law. AFS will keep you updated as soon as they announce the new rate for 2012.

For example:

People making $110,100 in 2011 will pay $4,486, if the rate reverts back to 6.2% in 2012 they will pay $6,826 or $2,340 more.

If the rate stays at 4.2% the will pay only $139 more and if it gets reduced to 3.1% they will pay $1,073 less than in 2011.