SKR+Co Alert:  Immediate Payroll and Sales Tax Increases & Overview of Just Passed American Tax Relief Act

January 2, 2013

Social Security tax rates go back up andEl Paso County sales tax also increases, effective Jan. 1, 2013

One item not included in the American Tax Relief Act was an extension of the two percent employee payroll tax cut for social security, implemented in 2010. The rate was 4.2% and will now return to 6.2% on wages earned beginning Jan. 1, 2013. Therefore, employers should make sure their payroll software is updated for the new rate. (QuickBooks, for example, will calculate withholding at the new rate if the Payroll Update is run.) For more information, please click here or see IRS Notice 1036.

Additionally, El Paso County's sales tax rate has also increased, effective Jan. 1, 2013. The rate is now 1.23% from the prior rate of 1.00%. Businesses currently charging sales tax need to update their applicable software and their reporting for this new rate. For more information on the new rate, click here.

What the fiscal cliff deal – passage of the American Tax Relief Act (ATRA) – means for you

After much contention and negotiation, President Obama and Congress finally came to agreement on legislation to address the “fiscal cliff.” The American Tax Relief Act (ATRA) prevents income tax rate increases for all but approximately the top 2% of taxpayers. ATRA also extends other income tax breaks for individuals and businesses and addresses the alternative minimum tax (AMT) and the estate tax. This article provides an overview of some of the act’s key tax law changes.

Read the Full Article Here.

We hope to send you more detailed information regarding how ATRA affects individuals, businesses, and estate planning next week.

Happy New Year! 

All of us at Stockman Kast Ryan + CO wish our clients and friends a very happy, healthy, and prosperous 2013. We look forward to helping you achieve your goals this year and for many years to come. 

If you would like to contact us for any reason, please feel free to call us at (719) 630-1186 or email us through our Secure Email. We look forward to serving you!