U.S February Payroll Tax Update

Transcription

1 U.S February Payroll Tax Update For Microsoft Dynamics GP Round 3 Applies to: Microsoft Dynamics GP 10.0 on Microsoft SQL Server Microsoft Dynamics GP 2010 on Microsoft SQL Server Summary: This document contains instructions for installing the February 2012 Round 3 U.S. Payroll Tax Update for Microsoft Dynamics GP. This is the third tax update for It includes state tax table changes that take effect January 1, These instructions apply if you re using Microsoft Dynamics GP on Windows 2000, Windows XP, Windows Server 2003, Windows Vista, Windows Server 2008, or Windows 7. This document assumes that you are familiar with the Microsoft Dynamics GP U.S. Payroll module. Contents Changes in this update Resources to assist you Preparing for installation Installing the tax update Previous 2012 tax changes Copyright and legal notices February 2012 Round 3 U.S. Payroll Tax Update 1

2 Changes in this update The February 2012 Round 3 U.S. Payroll Tax Update contains tax changes for the following states: Illinois Missouri Puerto Rico 2012 state or territorial tax changes The following tax changes are included in this update: State or territory Description of change Illinois The dependent exemption has changed to $ (formerly $2,000.00). Missouri Puerto Rico The standard deductions have changed as Filing Status Description Standard Deduction Previous std deduction HOH Head of Household $8,700 $8,500 MAR1 Married Spouse not Employed $11,900 $11,600 MAR2 Married, Spouse Employed $5,950 $5,800 SINGLE Single $5,950 $5,800 Wage brackets and tax amounts the following filing statuses are updated: MFS - Married Filing Separately MFULL - Married/Full Deduction MHALF - Married/Half Deduction MNONE - Married/No Deduction OPFULL - Optional Mar/Full Deduction OPHALF - Optional Mar/Half Deduction OPNONE - Optional Mar/No Deduction SINGLE - Single/Mar Not Living w/spouse VTMFS - Veteran-Married Filing Separate VTMFUL - Veteran-Married/Full Deduction VTMNON - Veteran-Married/No Deduction VTOPFU - Veteran-Optional Mar/Full Deduction VTOPNO - Veteran-Optional Mar/No Deduction VTSNGL - Vet-Single/MarNotLivingW/Spouse $0.00-$6,500 $ % $0.00 $6,500-$23,000 ($455.00) 7.0% $0.00 $23,000-$41,300 ($2,065.00) 14.0% $0.00 $41,300-$61,300 ($6,608.00) 25.0% $0.00 $61,300 and over ($11,512.00) 33.0% $0.00 February 2012 Round 3 U.S. Payroll Tax Update 2

3 Resources to assist you If you have questions about U.S. Payroll tax updates and your Microsoft Partner isn t available, there are several resources, in addition to this document, to assist in answering your questions. U.S. Payroll Tax Updates on CustomerSource ( Look here to find out the tax changes included in each update and to download the update. All instructions for downloading and installing the tax updates also are provided here. Knowledge Base ( Provides you with instant access to the same database our support engineers use. You can find answers to common questions, along with technical tips and performance recommendations. esupport ( For support requests that can be handled with . On average, the response time is nearly twice as fast as telephone support. Discussion ( Start a tax update discussion with other members of the Microsoft customer community. This database provides you with the opportunity to exchange information with other customers, which is perfect for providing tips and answers to questions about tax updates. Microsoft Business Solutions Human Resources/Payroll support team We have a support team focused 100 percent on providing service and support to our Payroll customers. If you have questions, dial toll free 888-GPS-SUPP ( ). Preparing for installation Use the instructions in this section to prepare for the U.S. Payroll Tax Update. For detailed information about the changes in the current tax update round, see Changes in this update. Are you using a supported version? To identify the version you re using, start Microsoft Dynamics GP. Choose Help >> About Microsoft Dynamics GP. The information window displays the version number in the lower right corner. This U.S. Payroll Tax Update is supported for Microsoft Dynamics GP 2010 and Release 10.0 on Microsoft SQL Server. If you re not using one of the supported versions, you must upgrade to a supported version before installing this tax update. Have you obtained the update files? If your computer is connected to the Internet, the Payroll Update Utility (PUE) automatically can download the tax table update file (TX.cab) from the Internet. If your computer isn t connected to the Internet, you can obtain the file from CustomerSource ( or your Microsoft Partner and copy it to your computer before running what s known as a manual installation. February 2012 Round 3 U.S. Payroll Tax Update 3

4 Tax updates are distributed in the form of.cab files. Copy the.cab file to a folder that you can readily access, such as the folder that contains Dynamics.exe. Copying the.cab file to your computer does not complete the installation. Refer to the following section for instructions on how to install the tax update. Installing the tax update The Round 3 February 2012 tax update installation can be run from any workstation. The update installs payroll tax table data on the server computer where your existing Microsoft Dynamics GP application data is located. You need to install the tax table update only once. Before you begin, ask all Microsoft Dynamics GP users to exit the application until the update is complete. Exit all other applications, turn off the screen saver, and back up important data (including Forms.dic, Reports.dic, and Dynamics.vba if they exist) before you proceed with the installation. Note: The Payroll Update Engine, which is used to install the tax table update, is not supported on 64 bit operating systems when running Release 10.0 prior to Service Pack 3. For more information, refer to the Knowledge Base article at 1. Log onto Microsoft Dynamics GP with the system administrator rights, and open the Payroll Tax Update window. (Microsoft Dynamics GP menu >> Maintenance >> U.S. Payroll Updates >> Check for Tax Updates) 2. Select an update method, and then choose Next. The Automatic option downloads the current tax table update from the Internet to the default location. An Internet connection is required. The Manual option processes the tax table update from a location you choose. You might choose Manual if you need to update a computer that isn t connected to the Internet. To use this method, you should already have obtained the tax table update file, TX.cab, and copied it to a location your computer can readily access. 3. If you selected Automatic, enter your 10-digit authorized telephone number. Choose Log in to start the download. If you selected Manual, specify the location where the tax table update file is located. 4. Choose Process to start the update. 5. Verify that the latest Payroll tax table update has been installed. Choose Microsoft Dynamics GP menu >> Tools >> Setup >> System >> Payroll Tax. The Last Tax Update value should be 2/24/2012. February 2012 Round 3 U.S. Payroll Tax Update 4

5 What s next If you upgrade to another version of Microsoft Dynamics GP, you must install the most recent service pack (if any), as well as the most recent tax table updates for that release, to ensure you have the latest tax information. Newer releases of Microsoft Dynamics GP do not include current payroll tax information. February 2012 Round 3 U.S. Payroll Tax Update 5

6 Previous 2012 tax changes This update includes all previous 2012 tax updates. Previous tax changes are detailed below along with the round that each change was introduced. Previous 2012 federal tax changes Tax Code Federal Description of change Round 1: The personal exemption has been changed to $3,800 for married and single individuals. Wage brackets and tax amounts have been updated for Married (Filing Status = MAR) taxpayers as $0.00-$8,100 $ % $0.00 $8,100-$25,500 $ % $8,100 $25,500-$78,800 $1, % $25,500 $78,800-$150,800 $9, % $78,800 $150,800-$225,550 $27, % $150,800 $225,550-$396,450 $48, % $225,550 $396,450 and over $105, % $396,450 Wage brackets and tax amounts have been updated for Single (Filing Status = SINGLE) taxpayers as $0.00-$2,150 $ % $0.00 $2,150-$10,850 $ % $2,150 $10,850-$37,500 $ % $10,850 $37,500-$87,800 $4, % $37,500 $87,800-$180,800 $17, % $87,800 $180,800-$390,500 $43, % $180,800 $390,500 and over $112, % $390,500 Round 2: The 2011 year-end update incorrectly included the amount from Box 12 DD in the calculation for Box 12 A on the W-3 form. In the 2011 year-end update, a change incorrectly aligned the RO employee record in the EFW2 file. The Nonresident Alien tax withholding has been updated effective January 1, For information issued by the IRS about these changes, see The personal exemption is $3,800 for nonresident alien employees. Wage brackets and tax amounts for tax code FED, Nonresident Alien (Filing Status: NRA) taxpayers are as $0.00-$8,700 $ % $0.00 $8,700-$35,350 $ % $8,700 $35,350-$85,650 $4, % $35,350 $85,650-$178,650 $17, % $85,650 $178,650-$388,350 $43, % $178,650 $388,350 and over $112, % $388,350 February 2012 Round 3 U.S. Payroll Tax Update 6

7 FICA/Social Security Round 1: The Social Security wage base limit has been increased to $110,100 for employers and employees. Note: If the date value in the Payroll Tax Setup window is 12/23/2011, you must reinstall this update in order for the FICA employee tax rate to be updated to 4.2% To open the Payroll Tax Setup window, choose Microsoft Dynamics GP menu >> Tools >> Setup >> System >> Payroll Tax. Recapture information February 2012 Round 3 U.S. Payroll Tax Update 7

8 Previous 2012 state or territorial tax changes The following tax changes are included in this update: State or territory California Description of change Round 1: The annual personal exemption amount has increased to $ for all taxpayers. Standard deduction amounts and low income limits have been updated. Wage brackets and tax amounts have changed. Standard deduction and low income amounts are as Status Deduction amount Low income amount Single/Dual Income $3,769 $12,527 Married 1 $3,769 $12,527 Married 2 $7,538 $25,054 Head of Household $7,538 $25,054 Wage brackets and tax rates for Single employees (Filing Status: SINGLE) are as $0-$7,316 $ % $0.00 $7,316-$17,346 $ % $7,316 $17,346-$27,377 $ % $17,346 $27,377-$38,004 $ % $27,377 $38,004-$48,029 $1, % $38,004 $48,029-$1,000,000 $2, % $48,029 $1,000,000 and over $99, % $1,000,000 Wage brackets and tax rates for Married 1 (Filing Status: MAR1) or Married 2(Filing Status: MAR2) employees are as $0.00-$14,632 $ % $0.00 $14,632-$34,692 $ % $14,632 $34,692-$54,754 $ % $34,692 $54,754-$76,008 $1, % $54,754 $76,008-$96,058 $2, % $76,008 $96,058-$1,000,000 $4, % $96,058 $1,000,000 and over $97, % $1,000,000 Wage brackets and tax rates for Head of Household employees (Filing Status: HOH) are as $0.00-$14,642 $ % $0.00 $14,642-$34,692 $ % $14,642 $34,692-$44,721 $ % $34,692 $44,721-$55,348 $1, % $44,721 $55,348-$65,376 $1, % $55,348 $65,376-$1,000,000 $2, % $65,376 $1,000,000 and over $98, % $1,000,000 February 2012 Round 3 U.S. Payroll Tax Update 8

9 Connecticut Round 2: The withholding rules have been updated. The steps issued by the state changed the method used to calculate the withholding amount per pay period. For information issued by the state, see Wage brackets and tax rates have changed as Filing Status: F; Single; Type: Personal Exemption $0-$27,000 $13, % $0.00 $27,000-$28,000 $12, % $0.00 $28,000-$29,000 $11, % $0.00 $29,000-$30,000 $10, % $0.00 $30,000-$31,000 $9, % $0.00 $31,000-$32,000 $8, % $0.00 $32,000-$33,000 $7, % $0.00 $33,000-$34,000 $6, % $0.00 $34,000-$35,000 $5, % $0.00 $35,000-$36,000 $4, % $0.00 $36,000-$37,000 $3, % $0.00 $37,000-$38,000 $2, % $0.00 $38,000-$39,000 $1, % $0.00 $39,000-$40,000 $ % $0.00 $40,00 and over $0 0.0% $0.00 Filing Status: F; Single; Type: Special $0.00-$13,500 $ % $0.00 $13,500-$16,900 $ % $0.00 $16,900-$17,400 $ % $0.00 $17,400-$17,900 $ % $0.00 $17,900-$18,400 $ % $0.00 $18,400-$18,900 $ % $0.00 $18,900-$19,400 $ % $0.00 $19,400-$19,900 $ % $0.00 $19,900-$20,400 $ % $0.00 $20,400-$22,500 $ % $0.00 $22,500-$23,000 $ % $0.00 $23,000-$23,500 $ % $0.00 $23,500-$24,000 $ % $0.00 $24,000-$28,100 $ % $0.00 $28,100-$28,600 $ % $0.00 $28,600-$29,100 $ % $0.00 $29,100-$29,600 $ % $0.00 $29,600-$30,100 $ % $0.00 $30,100-$54,000 $ % $0.00 $54,000-$54,500 $ % $0.00 $54,500-$55,000 $ % $0.00 $55,000-$55,500 $ % $0.00 $55,500-$56,000 $ % $0.00 $56,000-$56,500 $ % $0.00 $56,500-$57,000 $ % $0.00 $57,000-$57,500 $ % $0.00 (continued) February 2012 Round 3 U.S. Payroll Tax Update 9

10 Delaware District of Columbia Hawaii $57,500-$58,000 $ % $0.00 $58,000-$58,500 $ % $0.00 $58,500 and over $ % $0.00 Round 2: The wage brackets, tax rates and tax amounts have been updated. Only the tax rate for $60,000 and over has changed. Wage brackets and tax rates for Single, (Filing Status: SINGLE), Married Filing Separately (Filing Status: MFS), and Married Filing Joint (Filing Status: MFJ) are as $0.00-$2,000 $ % $0.00 $2,000-$5,000 $ % $2,000 $5,000-$10,000 $ % $5,000 $10,000-$20,000 $ % $10,000 $20,000-$25,000 $ % $20,000 $25,000-$60,000 $1, % $25,000 $60,000 and over $2, % $60,000 Round 1: The wage brackets, tax rates and tax amounts have been updated. Wage brackets and tax rates for Single, Married Filing Jointly (Filing Status: SMFJ), and Married Filing Separate (Filing Status: MFS) are as $0.00-$10,000 $ % $0.00 $10,000-$40,000 $ % $10,000 $40,000-$350,000 $2, % $40,000 $350,000 and over $28, % $350,000 Round 1: The annual personal exemption amount has changed to $1,040 for all taxpayers. Wage brackets and tax rates for Single/Head of Household (Filing Status: SHOH) taxpayers are as $0.00-$2,400 $ % $0.00 $2,400-$4,800 $ % $2,400 $4,800-$9,600 $ % $4,800 $9,600-$14,400 $ % $9,600 $14,400-$19,200 $ % $14,400 $19,200-$24,000 $1, % $19,200 $24,000 and over $1, % $24,000 Wage brackets and tax rates for Married (Filing Status: MAR) taxpayers are as $0.00-$4,800 $ % $0.00 $4,800-$9,600 $ % $4,800 $9,600-$19,200 $ % $9,600 $19,200-$28,800 $ % $19,200 $28,800-$38,400 $1, % $28,800 $38,400-$48,000 $2, % $38,400 $48,000 and over $2, % $48,000 February 2012 Round 3 U.S. Payroll Tax Update 10

11 Idaho Round 2: The annual personal exemption amount has changed to $3,700 for all taxpayers. Wage brackets and tax rates for Single/Head of Household (Filing Status: SINGLE) taxpayers are as $0.00-$2,100 $ % $0.00 $2,100-$3,438 $ % $2,100 $3,438-$4,776 $ % $3,438 $4,776-$6,114 $ % $4,776 $6,114-$7,452 $ % $6,114 $7,452-$8,790 $ % $7,452 $8,790-$12,135 $ % $8,790 $12,135-$28,860 $ % $12,135 $28,860 and over $1, % $28,860 Wage brackets and tax rates for Married (Filing Status: MAR) taxpayers are as $0.00-$7,900 $ % $0.00 $7,900-$10,576 $ % $7,900 $10,576-$13,252 $ % $10,576 $13,252-$15,928 $ % $13,252 $15,928-$18,604 $ % $15,928 $18,604-$21,280 $ % $18,604 $21,280-$27,970 $ % $21,280 $27,970-$61,420 $1, % $27,970 $61,420 and over $3, % $61,420 Kentucky Maine Round 1: The annual personal exemption amount has increased to $2,290 for all taxpayers. Round 1: The wage brackets and tax amounts have been updated. Wage brackets and tax rates for Single (Filing Status: SINGLE) taxpayers are as $0.00-$3,100 $ % $0.00 $3,100-$8,200 $ % $3,100 $8,200-$13,250 $ % $8,200 $13,250-$23,450 $ % $13,250 $23,450 and over $1, % $23,450 Wage brackets and tax rates for Married (Filing Status: MAR) taxpayers are as $0.00-$9,050 $ % $0.00 $9,050-$19,250 $ % $9,050 $19,250-$29,400 $ % $19,250 $29,400-$49,750 $ % $29,400 $49,750 and over $2, % $49,750 February 2012 Round 3 U.S. Payroll Tax Update 11

12 Maryland Round 1: The Baltimore City local income tax has been updated to 3.2%. The wage amount for Baltimore City MFJ/HOH (Filing Status: BCMAR) taxpayers has been updated for the $350,000-$500,000 bracket only to $28, The wage brackets for Maryland residents working in Delaware for Single including married filing separately or dependent (Filing Status: MDDE) taxpayers have been updated as $0.00-$150,000 $ % $0.00 $150,000-$300,000 $11, % $150,000 $300,000-$500,000 $24, % $300,000 $500,000 and over $41, % $500,000 The wage brackets for Maryland residents working in Delaware for Married filing jointly head of household (Filing Status: DEMAR) taxpayers have been updated as Massachusetts Minnesota New Mexico $0.00-$200,000 $ % $0.00 $200,000-$350,000 $15, % $200,000 $350,000-$500,000 $28, % $350,000 $500,000 and over $40, % $500,000 Round 1: The flat tax rate has been updated to 5.25% for Head of Household (Filing Status: HOH) and Applicable to All Except HOH (Filing Status: OTHERS) taxpayers. Round 1: The annual personal exemption amount has increased to $3,800 for all taxpayers. Wage brackets and tax rates for Single(Filing Status: SINGLE) taxpayers are updated as $0.00-$2,150 $ % $0.00 $2,150-$25,820 $ % $2,150 $25,820-$79,880 $1, % $25,820 $79,880 and over $5, % $79,880 Wage brackets and tax rates for Married taxpayers (Filing Status: MAR)are updated as $0.00-$6,100 $ % $0.00 $6,100-$40,690 $ % $6,100 $40,690-$143,530 $1, % $40,690 $143,530 and over $9, % $143,530 Round 1: The annual personal exemption amount has increased to $3,800 for all taxpayers. Wage brackets and tax rates for Single taxpayers (Filing Status: SINGLE) are updated as $0.00-$2,150 $ % $0.00 $2,150-$7,650 $ % $2,150 $7,650-$13,150 $ % $7,650 $13,150-$18,150 $ % $13,150 $18,150-$28,150 $ % $18,150 $28,150-$44,150 $ % $28,150 $44,150-$67,150 $1, % $44,150 $67,150 and over $2, % $67,150 February 2012 Round 3 U.S. Payroll Tax Update 12

13 Wage brackets and tax rates for Married taxpayers (Filing Status: MAR) are updated as $0.00-$8,100 $ % $0.00 $8,100-$16,100 $ % $8,100 $16,100-$24,100 $ % $16,000 $24,100-$32,100 $ % $24,100 $32,100-$48,100 $ % $32,100 $48,100-$72,100 $1, % $48,100 $72,100-$108,100 $2, % $72,100 $108,100 and over $4, % $108,100 New York Round 2: The wage brackets and tax amounts have been updated. Wage brackets and tax rates for Single (Filing Status: SINGLE) taxpayers are as $0.00-$8,000 $ % $0.00 $8,000-$11,000 $ % $8,000 $11,000-$13,000 $ % $11,000 $13,000-$20,000 $ % $13,000 $20,000-$75,000 $ % $20,000 $75,000-$90,000 $4, % $75,000 $90,000-$100,000 $5, % $90,000 $100,000-$150,000 $6, % $100,000 $150,000-$200,000 $10, % $150,000 $200,000-$250,000 $13, % $200,000 $250,000-$1,000,000 $17, % $250,000 $1,000,000-$1,050,000 $73, % $1,000,000 $1,050,000 and over $97, % $1,050,000 Wage brackets and tax rates for Married (Filing Status: MAR) taxpayers are as $0.00-$8,000 $ % $0.00 $8,000-$11,000 $ % $8,000 $11,000-$13,000 $ % $11,000 $13,000-$20,000 $ % $13,000 $20,000-$75,000 $ % $20,000 $75,000-$90,000 $4, % $75,000 $90,000-$100,000 $5, % $90,000 $100,000-$150,000 $6, % $100,000 $150,000-$200,000 $10, % $150,000 $200,000-$300,000 $14, % $200,000 $300,000-$350,000 $21,326, % $300,000 $350,000-$1,000,000 $25, % $350,000 $1,000,000-$2,000,000 $73, % $1,000,000 February 2012 Round 3 U.S. Payroll Tax Update 13

14 New York, Yonkers Resident The wage brackets and tax amounts have been updated for the YONR tax code only. Wage brackets and tax rates for Single (Filing Status: SINGLE) taxpayers are as $0.00-$8,000 $ % $0.00 $8,000-$11,000 $ % $8,000 $11,000-$13,000 $ % $11,000 $13,000-$20,000 $ % $13,000 $20,000-$75,000 $ % $20,000 $75,000-$90,000 $4, % $75,000 $90,000-$100,000 $5, % $90,000 $100,000-$150,000 $6, % $100,000 $150,000-$200,000 $10, % $150,000 $200,000-$250,000 $13, % $200,000 $250,000-$1,000,000 $17, % $250,000 $1,000,000-$1,050,000 $73, % $1,000,000 $1,050,000 and over $97, % $1,050,000 North Dakota Wage brackets and tax rates for Married (Filing Status: MAR) taxpayers are as $0.00-$8,000 $ % $0.00 $8,000-$11,000 $ % $8,000 $11,000-$13,000 $ % $11,000 $13,000-$20,000 $ % $13,000 $20,000-$75,000 $ % $20,000 $75,000-$90,000 $4, % $75,000 $90,000-$100,000 $5, % $90,000 $100,000-$150,000 $6, % $100,000 $150,000-$200,000 $10, % $150,000 $200,000-$300,000 $14, % $200,000 $300,000-$350,000 $21,326, % $300,000 $350,000-$1,000,000 $25, % $350,000 $1,000,000-$2,000,000 $73, % $1,000,000 $2,050,000 and over $193, % $2,050,000 Round 1: The annual personal exemption amount has increased to $3,800 for all taxpayers. Wage brackets and tax rates for Single taxpayers (Filing Status : SINGLE) are updated as $0.00-$4,000 $ % $0.00 $4,000-$38,000 $ % $4,000 $38,000-$79,000 $ % $38,000 $79,000-$180,000 $1, % $79,000 $180,000-$390,000 $4, % $180,000 $390,000 and over $12, % $390,000 February 2012 Round 3 U.S. Payroll Tax Update 14

15 Wage brackets and tax rates for Married taxpayers (Filing Status: MAR) are updated as $0.00-$9,600 $ % $0.00 $9,600-$67,000 $ % $9,600 $67,000-$127,000 $ % $67,000 $127,000-$225,000 $2, % $127,000 $225,000-$395,000 $5, % $225,000 $395,000 and over $11, % $395,000 Oklahoma Oregon The wage brackets and tax amounts have been updated. Wage brackets and tax rates for Single (Filing Status: SINGLE), Married Filing Separately taxpayers (Filing Status: MFS), and Married w/2 Incomes taxpayers (Filing Status: MAR2) taxpayers are updated as $0.00-$5,950 $ % $0.00 $5,950-$6,950 $ % $5,950 $6,950-$8,450 $ % $6,950 $8,450-$9,700 $ % $8,450 $9,700-$10,850 $ % $9,700 $10,850-$13,150 $ % $10,850 $13,150-$14,650 $ % $13,150 $14,650 and over $ % $14,650 Wage brackets and tax rates for Married Head of Household taxpayers (Filing Status: MARH) are updated as $0.00-$11,900 $ % $0.00 $11,900-$13,900 $ % $11,900 $13,900-$16,900 $ % $13,900 $16,900-$19,400 $ % $16,900 $19,400-$21,700 $ % $19,400 $21,700-$24,100 $ % $21,700 $24,100-$26,900 $ % $24,100 $26,900 and over $ % $26,900 Round 2 (re-released): The annual personal exemption amount has been updated to $183 for all taxpayers. For the Single, Up to 2 Exemptions (Filing status: S2), the standard deduction has been updated to $2,025. The wage brackets and tax rate update are listed according to the tax table type: Type: Tax $0.00-$41,845 $ % $0.00 $41,845-$125,000 $ % $7,950 $125,000 and over $11, % $125,000 Type: Low Income $0.00-$3,150 $ % $0.00 $3,150-$7,950 $ % $3,150 $7,950-$50,000 $ % $7,950 February 2012 Round 3 U.S. Payroll Tax Update 15

16 Type: Special (used to limit the federal tax amount to calculate base wages) Income Tax amt. $0.00-$124, $6, $124, $129, $4, $129, $134, $3, $134, $139, $2, $139, $144, $1, For the Single with 3 or more exemptions (Filing Status: S3), the standard deduction has been updated to $4,055. The wage brackets and tax rates are listed according to the tax table type: Type: Tax $0.00-$39,845 $ % $0.00 $39,845-$250,000 $ % $15,900 $250,000 and over $22, % $250,000 Type: Low Income $0.00-$6,300 $ % $0.00 $6,300-$15,900 $ % $6,300 $15,900-$50,000 $1, % $15,900 Type: Special (used to limit the federal tax amount to calculate base wages) Income Tax amt. $0.00-$124, $6, $124, $129, $4, $129, $134, $3, $134, $139, $2, $139, $144, $1, Round 1: For the Married with 3 or more exemptions (Filing Status: MS3), the standard deduction has been updated to $4,055. The wage brackets and tax rate are listed according to the tax table type: Type: Tax $0.00-$39,845 $ % $0.00 $39,845-$250,000 $ % $39,845 $250,000 and over $22, % $250,000 Type: Low Income $0.00-$6,300 $ % $0.00 $6,300-$15,900 $ % $6,300 $15,900-$50,000 $1, % $15,900 Type: Special (used to limit the federal tax amount to calculate base wages) Income Tax amt. $0.00-$249, $6, $249, $259, $4, $259, $269, $3, $269, $279, $2, $279, $289, $1, February 2012 Round 3 U.S. Payroll Tax Update 16

17 Rhode Island Round 1: The wage brackets, tax rates and tax amounts have been updated. Wage brackets and tax rates for Single Inc. Head of Household (Filing Status: SINGLE) and for Married (Filing Status: Married) are as $0.00-$57,150 $ % $0.00 $57,150-$129,900 $2, % $57,150 $129,900 and over $5, % $129,900 Vermont Round 1: The annual personal exemption amount has increased to $3,800 for all taxpayers. Wage brackets and tax rates for Single taxpayers (Filing Status: SINGLE) are updated as $0.00-$2,650 $ % $0.00 $2,650-$37,500 $ % $2,650 $37,500-$87,800 $1, % $37,500 $87,800-$180,800 $4, % $87,800 $180,800-$390,500 $11, % $180,800 $390,500 and over $30, % $390,500 Wage brackets and tax rates for Married taxpayers (Filing Status: MAR) are updated as $0.00-$8,000 $ % $0.00 $8,000-$65,800 $ % $8,000 $65,800-$150,800 $2, % $65,800 $150,800-$225,550 $7, % $150,800 $225,550-$396,450 $13, % $225,550 $396,450 and over $28, % $396,450 February 2012 Round 3 U.S. Payroll Tax Update 17

18 Copyright and legal notices Copyright Copyright 2012 Microsoft. All rights reserved. Limitation of liability This document is provided as-is. Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. You bear the risk of using it. Some examples depicted herein are provided for illustration only and are fictitious. No real association or connection is intended or should be inferred. Intellectual property This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes. Trademarks Microsoft, Microsoft Dynamics, SQL Server, Windows, Windows Server, and Windows Vista are either trademarks of the Microsoft group of companies. FairCom and c-tree Plus are trademarks of FairCom Corporation and are registered in the United States and other countries. All other trademarks are property of their respective owners. License agreement Use of this product is covered by a license agreement provided with the software product. If you have any questions, please call the Microsoft Business Solutions Customer Assistance Department at (U.S. or Canada only) or February 2012 Round 3 U.S. Payroll Tax Update 18