December State Updates
Unemployment Insurance Rate Increase: Beginning January 1, 2013, the unemployment insurance taxable wage base will increase to $36,900.
Minimum Wage Increased in San Francisco: Beginning January 1, 2013 the minimum wage in San Francisco will increase to $10.55 an hour, previously $10.24 an hour.
State Disability Insurance Taxable Wage Base Increased: Beginning January 1, 2013, the State Taxable Wage Base will be increased to $100,880, previously $95,585 which will change the employee maximum contribution to $1,008.80.
Changes Made to Withholding Tables: California residents voted to pass Proposition 30 which increased income taxes rates retroactive to January 1, 2012.
New Definition for New Hire Reporting: Beginning in year 2013, the term “new hire” will mean an employee who has never worked for the employer or an employee who has not worked for the employer for longer than 60 days.
Income Tax Rate Lowered for Hancock County: The income tax rate for all wages paid on or after November 1, 2013 has decreased to 0.0155, previously 0.00165 for residents and to 0.0035, previously 0.0045, for nonresidents.
New Withholding Tables Issued: Wages paid after January 1, 2013 must follow the revised withholding tables and the new withholding computer formula.
Threshold for Electronic W-2 Filing Changed: Employers who file 25 or more W-2 forms must now do so electronically through the Taxpayer Access Point which are due February 28, 2013. The previous minimum was 50 or more employees.
Minimum Wage Increase: The Missouri minimum wage is increasing to $7.35 an hour beginning January 1, 2013. It was previously $7.25. This automatically increases the state tip credit, which is 50% of the minimum wage, to $3.67, previously $3.62 an hour.
New Withholding Tables Issued: The new wage-bracket and percentage method withholding tables will take affect for all wages paid on and after January 1, 2013. The changes were made to reflect personal income tax rate reductions.
Minimum Wage Increase in Albuquerque: The minimum wage will be increased in Albuquerque to $8.50 an hour, previously $7.50. Voters approved the bill on November 6, 2012 and the new minimum wage will take affect January 1, 2013. However, if an employer pays at least $2,500 annually in health care/child care benefits, their minimum wage is $7.50.
Minimum for E-Verify Filing Lowered: Beginning January 1, 2013 all private sector employees with 100 or more employees, lowered from 500, must check new employees work authorization using E-Verify. The threshold will decrease again on July 1, 2013 to 25 or more employees.
New Withholding Tables Issued: The wage bracket and percentage method withholding tables have been changed and will take effect January 1, 2013.
Temporary Disability Insurance Taxable Wage Base Increased: The Temporary Disability Insurance (TDI) will increase to $61,400, previously $60,000, on January 1, 2013. This will increase the maximum employee contribution, which is 1.2% of annual earnings up to the wage base, to $736.80.
Minimum Wage Increased: Beginning January 1, 2013 the Vermont minimum wage will increase to $8.60 an hour, previously $8.46 an hour. The state tip credit also increases to $4.43 an hour.