The IRS has published information regarding a Medicare tax calculation change that will start January 1, 2013. The change does not take effect until an employee has reached a certain wage limit, and once that limit is reached there is an additional .009 (nine-tenths of one percent) Medicare tax withheld from the employee’s wages. The employer wages are not affected, only the employee. Any type of wages or benefits that presently are subject to Medicare tax will be subject to this additional .9 percent for all wages and benefits that exceed $200,000.
Red Wing Software is currently working to ensure its CenterPoint Payroll and Red Wing Payroll Software programs will accommodate these changes well ahead of January 1st, 2013 when the changes take effect.
How about you? Can your payroll system calculate this additional Medicare tax calculation? If you are interested in upgrading to or purchasing CenterPoint Payroll, please learn more about the product by clicking here: Payroll Software or calling 800-732-9464.