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Free:
2011 tax calendar
(download pdf file) |
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Payroll tax Social Security Fica and Futa Limit
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Quicken
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Same great features as
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Create & customize
estimates & invoices; generate business reports; track
mileage; track multiple jobs per customer; accounts receivable
reports; track accounts payable; guidance for starting &
running a business.
|
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2011 FICA Tax (941
Tax)
limit - Fica Limit
|
NEW RATE FOR 2011 & 2012
FICA
rate for Employees is 4.2% (NOT 6.2%) FICA
Rate for Employers is 6.2%
Medicare remains at 1.45% for both Employers and Employees
Social Security tax includes FICA
6.2% and Medicare 1.45%. The FICA tax limit (Social Security)
changes annually. The Medicare tax has no limit. Employer FICA
tax is 6.2% and employee rate is 4.2%. Both FICA tax rate
(6.2%) and Medicare tax rate (1.45%) as a rule do not change
however to help the economy, 2011 have provided reduction in tax to
the employee.
In addition to FICA tax limit and Social Security Limit, other tax
limits and tax rate (s) can be found on this webpage. |
|
2011 Medicare Wage Base limit
2011
Social Security Wage Base limit
2012
Social Security Wage Base
limit
top |
Unlimited
$106,800 2011
$110,100 2012
Wow...in 2002 the limit was $87,000! |
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FUTA Tax (940)
limit |
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2011 Federal Unemployment
limit through 12/31/2011
Before July 1, 2011, the FUTA tax rate is 6.2%, after June 30,
2011, the FUTA tax rate is scheduled to decrease to 6.0%. The tax
applies to the first $7,000 you pay to each employee as wages during
the year. Generally, you can take a credit against your FUTA
tax for amounts you paid into state unemployment funds. The credit
may be as much as 5.4% of FUTA taxable wages. If you are entitled to
the maximum 5.4% credit, the FUTA tax rate after credit is 0.8%
(0.6% after June 30, 2011). |
$ 7,000
.8% to 6/30/2011
.6% after 07/01/2011 |
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Shortcuts, tips, resources for payroll taxes and human
resources |
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QuickBooks
Payroll
top |
Credit card companies will be reporting credit
card sales by merchants to the IRS beginning in 2011 on Form 1099-K.
Click here to view a draft of the 1099-K
to see what will be reported. That means
you ARE NOT to include in your vendor
1099-Misc Forms payments you made to them with credit or debit cards
or paypal transactions
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Click here for IRS source
2011 Business mileage on a vehicle
2012 Business mileage on a vehicle
Interesting article on what auto expense is deductible |
| 2011 Mileage - Business rate |
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| 2012 Mileage - Business rate
|
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$ .51 per mile (51 cents)
to 6/30
$ .555 per mile (55.5 cents) to 12/31
$ .555 per mile (55.5 cents) 1/1/2012 |
|
2011 Mileage - Charity rate |
| 2012
Mileage -
Charity rate |
|
$ .14 per mile
2011
$ .14 per mile 2012 |
2011 Milage - Medical and Moving Rate |
|
| 2012
Mileage - Medical and Moving rate |
|
$ .19 per mile (19 cents)
6/30
$ .235 per mile (23.5 cents)to
12/31
$ .23 per mile (23 cents)
1/1/2012 |
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Payroll tax rules
Part A and
Part B for
employees or owners using a company vehicle
Revenue procedure 2009-54 (year 2010) detailed discussion on
rules under which the amount of ordinary and necessary expenses of
local travel or transportation away from home are deemed
substantiated . |
|
Need prior year rates? Click below
2010 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2009 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2008 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2007 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2006
rates and limits - Social Security, Mileage, Pension, 401K, IRA
2005 rates and limits - Social Security, Mileage, Pension, 401K, IRA
2004
rates and limits - Social Security, Mileage, Pension, 401K, IRA
2003
rates and limits - Social Security, Mileage, Pension, 401K, IRA
top |
2011 Maximum contributions and limits to pensions, IRA,
and 401K
Click here for official source for:
2011 limitations
|
Take control of your
finances! |
|
Choosing a retirement plan |
|
2011 Maximum employee
401K contribution limit
|
2011
$16,500 +$5,500
(over age 50)
2012
$17,000 + $5,500 (over age
50) |
|
2011 Catch up contribution
Limit
(over age 50) |
$ 5,500 (2011)
and
2012
included in above
|
|
2011
Employer contribution to 401K is
limited
2011 total
additions (employer contribution plus employee contribution)
cannot exceed lesser of :
Tidbit: Did you know
that the employer must remit salary reduction contributions no later
than the 7th business day following withholding.
Click here to read more,
You will find this tidbit under Fiduciary Responsibilities > Basic
Responsibilities > Sentence begins with For plans with fewer than
100 employees.
top |
Up
to 25% of compensation
2011 $49,000 or
100% of compensation
$54,500 for over
age 50
2012 $50,000 or 100%
of compensation
|
|
2011 Maximum Annual
Compensation limits for determining benefits or contributions
under a qualified plan
(401(a)(17), 404(l), 408(k)(3)(C), &
408(k)(6)(D)
Note:
for
(2011)
definition of a key employee in a top heavy plan is $160,000
for
(2012)
definition of a key employee in a top heavy plan is $165,000
top |
$ 245,000 2011
$ 250,000
2012
| |
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2011 Maximum Annual Defined Contribution-
Employer Contributions for 2011 to an employee SEP-IRA cannot
exceed
the lesser of the following amounts:
2011 Simplified Employee Pension
Employers contribution for employees is based on the plan
document, which cannot be more restrictive than including all
employees who performed services for the employer in the last 3 of 5
years with earnings greater than:
Employees covered under collective bargaining employees & certain
nonresident aliens may also be exclude.
Special rules apply to the self-employed. See publication 560 (www.irs.gov)
for a worksheet on how to calculate a 2009 SEP contribution for a
self employed Schedule C Filer. For the worksheet,(same
worksheet works for 2011)
click
here.
Learn more- The ABCs of SEP Plans
Checklist- are you in compliance with IRS SEP rules and regs?
Pdf
top |
25% of the employee's W2 compensation
(
up to $ 245,000
2011)
or
$
49,000
(2011)
$ 50,000
(2012)
$
550
(2011) and
2012
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|
|
2011 Simple
Retirement Account (Simple IRA)
Maximum Pretax Employee contribution
Learn more- The ABCs of Simple Plans
Checklist- are you in compliance with IRS Simple rules and regs?
Pdf |
$ 11,500
2011
&
2012
+ over age 50 catch up
The employer contributes up to 3% of W2 wages
which is in addition to the Employee deferral max above (Maximum ER
contribution is $11,500) |
|
|
2011 Simple Catch up
Deferral (over age 50)
top |
$
2,500 (
2011)
&
2012
|
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2011
Limit to Traditional IRA, nondeductible IRA, or Roth IRA.
2012
Limit
Who can contribute |
$ 5,000 + over age 50 catch up
$ 5,000 + over age 50 catch up
|
Hidden Financial Risk
Understanding
Off-Balance Sheet Accounting
$27.17
Explains methods by debt is hidden and the failure by
management and auditors and investors to detect and eliminate
these tools of deception |
|
IRA Catch up Deferral
(over age 50) |
$
1000 (2011)
&
2012 |
|
Learn about small business pensions
Retirement Plan Navigator
Resource for CPAs and retirement plan administrators
Top |
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How retirement income is taxed
(pdf) |
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Top |
2011 Maximum Earnings for Retirees
|
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2011
Maximum retirement earnings
before
Social Security benefits are reduced
(One dollar in benefits will be withheld for every $2 in earnings
above the limit)
Retirement Age from 65 to 67 depending upon Year of Birth |
|
Normal Retirement Age Year of
birth Age
1937 and prior 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943-54 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67 |
Over
Retirement Age
Under Age:
2011 under full retirement age reduction begins
The year an individual reaches retirement age:
2011 reduction begins
Apples only to earnings for months prior to attaining full
retirement age. $1 in benefits will be withheld for ever $3 in
earnings above limit
top |
unlimited earnings permitted - no reduction
2011
earnings over $ 14,160 ($1180/mo)
2012
earnings over $ 14,640 ($1220/mo)
2011
earnings over $37,680/yr (3140/mo)
2012
Earnings over $38,880 (3240/mo) |
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In the year the individual reaches full
retirement age, earnings months prior to attaining full
retirement age - One dollar in benefits will be withheld for every
$3 in earnings above the limit of $37,680 (2010) |
|
Minimum Wage hourly rates
|
Best Sellers!
$12.23
$12.89
$12.89
$12.89
$12.89
$13.57 |
|
Link to a chart of all States Minimum Wage rates |
|
Federal
minimum wage
Top |
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Individual Rates
Original
2011 source
2012 source
-
$ 5,800 2011 Standard deduction for
Single
(2012 $5,950)
-
$ 5,800 2011 Standard deduction for
Married filing separate
(2012 $5,950)
-
$ 8,500 2011 Standard
deduction for Head of household
(2012 $8,700)
-
$11,600 2011 Standard deduction for Married filing Joint
(2012 $11,900)
Exemption amount
2011 $3,700
(2012 $3,800)
2011
Deduction for personal exemption phase out begins :
**2011
Phase out: The phase out of the
personal exemption amount under § 151(d)(3) does not apply
to any taxable year beginning after December 31, 2009, and
before January 1, 2013.
Accordingly
personal exemption phaseouts ended.
For 2011, taxpayers with AGI above a certain amount will no
longer lose part of their deduction for personal exemptions
and itemized deductions.
Deduction for itemized deductions phase out
begins when
AGI Threshold
2011 Phaseout:
The overall limitation on itemized
deductions under § 68 does not apply to any
taxable year beginning after December 31, 2009,
Accordingly, itemized
deduction phaseouts ended. For 2011, taxpayers with AGI above
a certain amount will no longer lose part of their deduction
for personal exemptions and itemized deductions.
|
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Click here to view IRS website containing these 2011 rates
For tax forms and extensions to file individual tax returns click
here
2011 Tax Rates
|
2011 Individual Tax Rates |
10% |
15% |
25% |
28% |
33% |
35% |
|
Single |
8,500 |
next 26,000
to 34,500 |
next 49,100 to 83,600 |
next 90,800
to 174,400 |
next 204,750
to 379,150 |
amounts over
379,150 |
|
Head Of Household |
12,150 |
next 34,100
to 46,250 |
next 73,150
to 119,400 |
next 73,950
to 193,350 |
next 185,800 to 379,150 |
amounts over
379,150 |
|
Married Joint |
17,000 |
next 52,000
to 69,000 |
next 70,350
to 139,350 |
next 72,950
to 212,300 |
next 166,850 to 379,150 |
amounts over
379,150 |
Click here to view IRS website containing these rates
|
2012 Individual Tax Rates |
10% |
15% |
25% |
28% |
33% |
35% |
|
Single |
8,700 |
next 26,650
to 35,350 |
next 50,300 to 88,650 |
next 93,000
to 178,650 |
next 210,000
to 388,350 |
amounts over
373,650 |
|
Head Of Household |
12,400 |
next 34,950
to 47,350 |
next 74,950
to 122,300 |
next 75,750
to 198,050 |
next 190,300 to 388,350 |
amounts over
388,350 |
|
Married Joint |
17,400 |
next 53,300
to 70,700 |
next 72,000
to 142,700 |
next 74,750
to 217,450 |
next 170,900 to 388,350 |
amounts over
388,350 |
Top |
Click here for: 2011
Corporate Rates
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TurboTax Business
+ QuickBooks
+ Set-up Assistance
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$15.61 |
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top |
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Federal gift tax exclusion-
click on annual exclusion
Taxable gifts count as part of the $1 million you are allowed to
give away during your lifetime before you must pay Gift Tax.
These exclusions do not count towards the $1 million.
2006-2008 Estate Tax Applicable Exclusion Amount
2009 Estate Tax Applicable Exclusion Amount
2010 Estate Tax - No tax
therefore no exclusion- This may change retroactively!
2011 Estate Tax Exclusion Amount
top
|
$ 13,000 (2010
and 2011)
$2,000,000
$3,500,000
None
$1,000,000 tax on the rest is 55% |
Health Savings Accounts (HSA)
|
High Deductible Health Plan and Contribution Limits
|
2011 limits
|
Maximum HSA Contribution Limit |
Minimum
Policy Deductible |
Annual out-of- pocket does not exceed |
2011 Self -only coverage annual deductible
2012 |
$3050
$3100 |
$1,200 |
$5,950
$6,050 |
2011
Family coverage annual deductible
2012 |
$6150
$6250 |
$2,400 |
$11,900
$12,100 |
2011
Over Age 55 (not
over 50!!) Catch up
contribution is $1000
(not mentioned in the 2011 documentation
attached here )
(2012 documentation
attached here)
Individuals who are eligible individuals on the first day of
the last month of the taxable year (December for most
taxpayers) are allowed the full annual contribution (plus
catch up contribution, if 55 or older by year end), regardless
of the number of months the individual was an eligible
individual in the year. For individuals who are no longer
eligible individuals on that date, both the HSA contribution
and catch up contribution apply pro rata based on the number
of months of the year a taxpayer is an eligible individual.
Beginning in 2011 over the counter medications cannot be paid
with HSA dollars
If you withdraw funds from an HSA before
age 65 and used those funds for purposes other than qualified
medical expenses there is a penalty tax of and additional 10%.
In 2011 that penalty increases to 20%. |
|
Learn more about Health Savings Accounts and administrative
requirements
|
|
|
What new taxes and
tax credits
come with the new Healthcare bill?? |
|
|
Employers
health care tax credit - If you have 10 or fewer workers with
average salaries of $25,000 and pay at least 50% of
health care premiums, your credit will be 35% of the premiums paid.
But small businesses with more than 25 employees or pay average
annual wages of over $50,000 will not qualify for a credit.
Click here to read the rev proc 2010-44 ruling on how to calculate
the tax credit.
03/22/10 Healthcare bill will be funded
in part by the wealthy.
Click here to read the
Amendment - Start reading at page 88
Nice summary of the
bill and the amendment by ria.thomsonreuteres.com
For years after 2010 employers will have to
disclose the value of the benefit provided by them for each
employee's health insurance on the W-2 Form. An Excise tax will be
imposed on high-cost employer sponsored health coverage. The tax
will be levied at the insurer level.
For tax years after 12/31/2012 A surtax
labeled "Additional Hospital Insurance Tax (HI). Hospital insurance
benefits in Medicare are funded by payroll taxes on wages and
self-employment income. Workers and employers each pay 1.45% for a
total of 2.9% medicare tax, which is collected on the workers entire earnings.
A 0.9% surtax on wages and self employment income
in excess of Modified adjusted gross income over the Threshold
amount limit ($250,000 Joint Returns, all others $200,000) will be
assessed.
For tax years after 12/31/2012 3.8% surtax of the lesser of
Net Investment income or excess of Modified adjusted gross income
over the Threshold amount limit ($250,000 Joint Returns, all others
$200,000)
Net Investment income -Sum of:
-
Interest, dividends, annuities, rents
(does not include distributions from qualified retirement plans)
-
Income from a trade or business (described
in paragraph 2)- Passive activity, business trading in
financial instruments, Income on investment of working capital
-
Gain from sales of disposition of property
(other than property held in business)
For tax years after 12/31/2012 FSA (flexible
spending account) new limit is $2500. Currently there is no limit. |
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Travel Reimbursement Rules for Lodging, Meals &
Incidental Expenses |
|
|
See Revenue Ruling for details on flat rate
reimbursement plans Meals
while away on business
50% deductible
|
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2010 Limit $134,000 (This may
change!!)
2010 Limit Section 179 $250,000 (3/11/10
Bill HR 2847)
2010 and 2011 Limit
Section 179 $500,000 (Small
Business Jobs Act)
2012 Limit Section 179 $125,000
2013 Limit Section 179 $25,000
New or used property qualifies, leased property
usually does not qualify
The amount of investment qualifying for this
immediate deduction begins to phase out for small businesses with
investment in excess of $800,000 $2,000,000
Regs now permit Section 179 on off-the-shelf
software
Elect to deduct $5000 start-up & $5000
organizational expenses in the year the business begins.
Effective for expenses incurred after 10/22/04. Be sure to read more
on the details of this rule.
Deductions reduced by the amount of which
the cumulative cost of start-up or organizational expenditures
exceed $50,000 respectively
|
Luxury Auto depreciation rules: |
|
|
A car is
defined as a four-wheel passenger automobile designed for use
on public roads and is rated at 6,000 pounds or less
unloaded gross vehicle weight
|
1st year depreciation limit |
$3060 (2010)
($11,060 for automobiles for which
the special depreciation allowance applies)
Caution. These limits are reduced if the
business use of the vehicle is less than 100% |
|
Special use vehicles (over 6000lbs loaded) now
exempt from luxury auto rules and can be deducted under section 179
|
SUVs (over 6000lbs)
Heavy Trucks & Vans
read more |
Not updated for 2010 limits
Not updated for 2010 limits |
Publication 946 has a nice table for limits on
depreciation of vehicles
top
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3 years from tax period due
date or 3 years from date original return received whichever is
later
unless the taxpayer fails to include on a return any information
with respect to a
listed transaction
then the statute of limitations will not expire before 1 year after
the Secretary is furnished with the information.
See more-Statute of Limitations guidelines
see also
How long should you retain your receipts
and business documents |
|
Tax Tips from the IRS
|
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|
Click to
view tax tips at
www.IRS.Gov |
|
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Thank you
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IRS
Circular 230 Disclosure: To ensure compliance with
requirements imposed by the IRS, we inform you that, any U.S.
federal tax advice contained in this communication (including any
attachments) is not intended or written to be used, and cannot be
used, for the purpose of (i) avoiding any tax related penalties that
may be imposed on you or any other person under the Internal Revenue
Code or (ii) promoting, marketing, or recommending to another party
any transaction or matter addressed in this communication |
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