2008 Payroll Fact Sheet

                   TAXABLE        EMPLOYER     EMPLOYEE        MAXIMUM            MAXIMUM

FICA        WAGE BASE      TAX RATE       TAX RATE     EMPLOYER TAX     EMPLOYEE TAX

 

(OASDI)     $ 102,000          6.20%             6.20%          $ 6,324.00          $ 6,324.00

 

(HI)             No limit             1.45%             1.45%            No limit               No limit

 

 

FEDERAL                                  TAXABLE               TAX

UNEMPLOYMENT                  WAGE BASE           RATE 

 

                                                $ 7,000                0.8%     Sick pay, all tips and taxable

                                                                                         fringe benefits included.

 

Employers need to remit FUTA taxes only when the liability has reached $ 500.

 

 

    3.07%

 

 

                             TAXABLE                                   TAX

                           WAGE BASE                               RATE

 

Employer                $ 8,000                             As set by PA

Employee               No Limit                            .06% (.0006)

 

 

Berks EIT remains at 1%.

City of Reading is 2.7% for residents

Berkheimer varies by municipality.

Philadelphia:   Resident - 4.219%; Nonresident – 3.7242%.  These rates are effective January 1, 2008.

 

 

Certain municipalities and school districts have an annual Local Services tax (formerly the Emergency and Municipal Services Tax); each municipality has its own due date.  Municipalities have the right to collect an LS tax up to $ 52 per employee.  Please check with your municipality for your specific LST rate.  Effective January 1, 2008, this tax is to be withheld on a weekly basis (for example, if the tax rate is $52; $1 per week should be withheld) and remitted on a quarterly basis.

 

 

                   MINIMUM     MINIMUM WAGE    MAXIMUM CREDIT     MAXIMUM TIP

AS OF          WAGE            WITH TIPS            FOR TIPS            CREDIT PERCENTAGE

 

7/1/07           $ 7.15                $ 2.83              $ 4.32                       n/a

(Employers with 10 or fewer full-time employees have a minimum wage of $ 6.65 until 7/1/08 when the rate increases to $ 7.15.)

 

To compute your deposit of Federal income tax withheld and OASDI & HI taxes:

 

     OASDI & HI            Employer's                Federal tax

     withheld                    matching                    withheld

        from            +        portion of          +          from              =     Tax Deposit

     employee                 OASDI & HI               employee

 

New employers are monthly schedule depositors for the first year.   Each November, the IRS notifies employers if their coming year deposit requirements will change.  Exceptions to the monthly rule:  Businesses will be able to make quarterly deposits if they are sure they will pay less than $2,500 each quarter of the entire tax year.  Businesses with $100,000 one-day liability must deposit by the next business day.

 

Electronic Deposit Requirement.  The threshold that determines whether you must use the Electronic Federal Tax Payment System (EFTPS) is $200,000.  Participation in EFTPS is voluntary if all of a business’s federal tax deposits in 2001 or future years do not exceed the $200,000 annual threshold.  Businesses that exceed the threshold must continue to use EFTPS in all later years.

 

 

New Hire Reporting regulation for PA employers was effective January 1, 1998.  All employers must report certain information on new hires to the state within 20 days.  We can assist you with this form.

 

The Standard Business Mileage Rate for 2008 is 50.5 cents (effective 01/01/08).