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J. RUSSELL JEFFERSON, CPA

 
 
2011 WAGE TAX RATE ADVISORY
 
                                FEDERAL WITHHOLDING
  
   Always use current Circular E (Revised January 2011)
 
          OASDI (Old Age, Survivors and Disability Insurance)
Maximum earnings - $106,800.00
                       (Same as $106,800 in 2010)
 
Employer Percentage – 6.2%
                         (Same as 2010)
               Maximum Deduction - $6,621.60
                         (Same as $6,621.60 in 2010)
 
            NEW Employee Percentage- 4.2%
                          (Down from  2010)
                  Maximum Deduction - $4,485.60
                           (Down from 6,621.60 in 2010)
 
                                             MEDICARE
Maximum earnings – UNLIMITED
                         (Same as 2010)
 
Employee & Employer Percentage – 1.45%
                       (Same as 2010)
 
Maximum Deduction – UNLIMITED
                       (Same as 2010)
 
                                NEW JERSEY SUI/DI/WFD/FLI
Maximum earnings - $29,600.00 thru 6/30/2011
            (Down from $29,700.00.00 in 2010)
 
Employee Percentage – .0985% thru 6/30/11
                       (Down from 1.045% in 2010)
 
Maximum Deduction - $291.56
   (Down from $301.37 in 2010)
 
Base Weeks 13 – Base Amount - $145.00
             
                              ADDITIONAL INFORMATION
 
     Maximum employee contribution in a 401(k) is
     $16,500 for 2011.   If over age 50 there is a catch-
     up provision that allows $5,000 in contributions