2012 Payroll Tax Tables

Tax tables are the method used by federal, state and local tax agencies to determine withholding amounts. It is used to determine the rates and limits for federal, state and specific local taxes.

There are frequent changes to payroll tax regulations at both federal and state level.

To ensure compliance with changing payroll tax withholding regulations, keep track of the tax table revisions to withhold the correct amount of tax from each employee’s wages.

2012 will be challenging year to be in compliance with the changes. Federal and state agencies are ramping up audits and penalties imposed may be substantial.

What changed?

There were multiple changes to the employee portion of the Social Security rate in the last few months.

Middle Class Tax Relief and Job Creation Act of 2012 extend the reduced employee Social Security tax rate of 4.2% through December 31, 2012.

2012 Tax Rates and Income Brackets by Filing Status

	Taxable income range			2012 Tax Rate and Liability
	Married Individuals Filing Joint Returns and Surviving Spouses
	$11,900			Standard Deduction
	$0	to	$17,400	10% of the taxable income
	$17,401	to	$70,700	$1,740	+ 15% of the excess over	$17,400
	$70,701	to	$142,700	$9,735	+ 25% of the excess over	$70,700
	$142,701	to	$217,450	$27,735	+ 28% of the excess over	$142,700
	$217,451	to	$388,350	$48,665	+ 33% of the excess over	$217,450
	over		$388,350	$105,062	+ 35% of the excess over	$388,350
	Head of household
	$8,700			Standard Deduction
	$0	to	$12,400	10% of the taxable income
	$12,401	to	$47,350	$1,240	+ 15% of the excess over	$12,400
	$47,351	to	$122,300	$6,483	+ 25% of the excess over	$47,350
	$122,301	to	$198,050	$25,220	+ 28% of the excess over	$122,300
	$198,051	to	$388,350	$46,430	+ 33% of the excess over	$198,050
	over		$388,350	$109,229	+ 35% of the excess over	$388,350
	Single
	$5,950			Standard Deduction
	$0	to	$8,700	10% of the taxable income
	$8,701	to	$35,350	$870	+ 15% of the excess over	$8,700
	$35,351	to	$85,650	$4,868	+ 25% of the excess over	$35,350
	$85,651	to	$178,650	$17,443	+ 28% of the excess over	$85,650
	$178,651	to	$388,350	$43,483	+ 33% of the excess over	$178,650
	over		$388,350	$112,684	+ 35% of the excess over	$388,350
	Married Individuals Filing Separate Returns
	$5,950			Standard Deduction
	$0	to	$8,700	10% of the taxable income
	$8,701	to	$35,350	$870	+ 15% of the excess over	$8,700
	$35,351	to	$71,350	$4,868	+ 25% of the excess over	$35,350
	$71,351	to	$108,725	$13,868	+ 28% of the excess over	$71,350
	$108,726	to	$194,175	$24,333	+ 33% of the excess over	$108,725
	over		$194,175	$52,531	+ 35% of the excess over	$194,175

Refer http://www.irs.gov/pub/irs-pdf/p15.pdf for more information.