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MEMORANDUM
TO: All Clients
DATE: December 2010
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FICA Tax Changes for 2011:
FICA Tax includes both Social Security coverage and Medicare coverage, and are both a deduction
from employee wages and matched by the employer.
Maximum Wages Subject to
Social Security Tax $ 106,800.00
Maximum Social Security Tax 6,621.60
Maximum Wages Subject to
Medicare Tax Unlimited (UNCHANGED)
Social Security Tax Rate:
Employees 4.20%
Employers 6.20%
Medicare Tax Rate:
Employees 1.45%
Employers 1.45%
NYS and NJ minimum wage is $7.25 per hour
** The Federal & State agencies have been aggressively looking for ways to assess taxes &
penalties. forms 1099 have become an area for target. All payments of $600. per year to non-
corporate entities for services will need a signed and completed form W-9 on file so we can
complete a Form 1099 at year end. All sales not including sales tax must have a resale certificate or exemption certificate on file from the customer. If you need any forms or have any
questions, please do not hesitate to contact our office.
** Please be advised that it is a misdemeanor to be collecting Sales Tax without having your
Certificate of Authority on display at your place of business and, if you have employees, you
must also have your Workers’ Compensation and Disability Insurance Certificates displayed.
** We are an authorized Quickbooks-Pro Advisor and, as such, can get you discounts on Quick-
books, Quickbooks upgrades, and Quickbooks supplies directly from Quickbooks. Our contact is
Keith Van Order and his direct number is 214-387-2840. We were told our clients would receive
a 30% discount.
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