From the NPD Payroll Newsletter!

NPD Payroll wants to share with our readers a few 2012 reminders of important new tax laws.
 Change to Social Security Taxable Wage Base for 2012Beginning on January 1, 2012, the taxable social security wage base will increase from $106,800.00 to $110,100.00 for each employee. All wages remain taxable for Medicare.

Bill Passed to Temporarily Extended Payroll Tax Cut regarding Employee Social Security Tax
The Employee contribution to Social Security will remain at 4.2% for January and February of 2012. Beginning March 1, 2012, the rate is scheduled to increase tp 6.2%, however there is a possibility of an extension through 2012.
New language is called to be inserted into the bill to protect employers:
Wages are subject only to the full 2012 wage base ($110,100) and without regard to the $18,350 cap (two-twelfths of the wage base of $110,100) on wages earned through the end of February, 2012.
If an employee's wages during the first two months of 2012 exceed $18,350, and the payroll tax reduction is not extended for the remainder of 2012, an amount equal to 2% of those excess wages would ultimately be recaptured on the worker's individual tax return 2012.

Att: Any employers with ANY service employees who employ 50 or more individuals CT NEW Paid Sick Leave Law beginning January 1,2012
This law has many provisions, so please refer to the CT Dept. of Labor website at http://www.ctdol.state.ct.us/wgwkstnd/SickLeave.htm .
Employers who are liable have:A business located in CT, 50 or more employees, and at least one service employee (please refer to DOL for definition of service employee). For liable employers, beginning January 1, al eligible service employees will receive one hour of paid sick leave time for every 40 hours worked. We STRONGLY encourage all liable employers to attend the next DOL seminar to learn about all of the intricacies of this new law to ensure compliance. Please refer to the CT DOL website for details on the law and next seminar (1/12/12). Please also feel free to reach out to NPD with further questions.

State Law Updates
January 1, 2012: Florida minimum wage rate of $7.31 per hour will increase to $7.67 per hour.
January 1, 2012: Arizona minimum wage rate of $7.35 per hour will increase to $7.65 per hour.
Minimum wage for CT will remain the same at $8.25 per hour for 2012.

401K Contributions
Contribution limits to a 401K in 2012 will increase by $500.00 to $17,000.00 annually. Catch-up contributions (age 50 or older at any point in 2012) will cap at $5,500.00 for the year, for a total of $22,500.00.

Standard Mileage Rates 2012
Standard Mileage Rates for use of a car (also vans, pickups or panel trucks) will remain at 55.5 cents per mile for business miles. Mileage rates for medical or moving purposes will be 23 cents per mile. Mileage rates for services of charitable organizations will be 14 cents per mile.

Please Note: 2012 CT and Federal W-4 now available
The new Connecticut W-4's for 2012 have been released by the Connecticut Department of Revenue. You can access these forms here: http://www.ct.gov/drs/lib/drs/forms/2012withholding/ct-w4.pdf , or by accessing "ct.gov/drs" and clicking "forms" at the top of the page. Then click "Businesses" and then "Withholding Tax: 2012 forms".
The new Federal W-4's for 2012 have been released by the IRS as well.
You can access these forms here: http://www.irs.gov/pub/irs-pdf/fw4.pdf .