SUTA Wage Base Increase
Please note effective January 1, 2012, Colorado SUTA will increase its wage base from 2011's $10,000 up to $11,000.
Colorado's Minimum Wage Increase
Effective January 1, 2012, the Colorado minimum wage rate has increased to $7.64 per hour and $4.62 per hour for employees who regularly receive tips.
FUTA Tax Rate Decrease
The FUTA tax rate (before the state credit of 5.4%) was 6.2% from January 1 through June 30, 2011 and decreased to 6.0% July 1 through December 31, 2011. The IRS has already released a corrected Form 940 to reflect the breakdown for the first half of the year to the second half of the year. Please be careful if you use a software program that prepares your Form 940, as the software may not be updated for the mid-year decrease.
Temporary Payroll Tax Cut Continuation Act of 2011
The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through February 29, 2012. This reduced Social Security withholding will have no effect on the employees' future Social Security Benefits.
If you have any questions about this information, please don't hesitate to contact our accounting firm: 719-574-0100.