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American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition

American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition
It's more important than ever to be in compliance with payroll laws and regulations! How do you stay in compliance and avoid penalties? The APA Basic Guide to Payroll is written to make understanding the laws and regulations as easy as possible. And this single-volume guide is filled with tools to help you apply the law and make proper calculations – with ease!

CCH® PAYROLL — 6/11/12

Maryland revises 2012 withholding tables

Maryland has revised the 2012 withholding tables due to recently enacted tax legislation. The legislation increased personal income tax rates for individuals with income in excess of $100,000 ($150,000 for joint filers) and established new income tax brackets beginning in tax year 2012. The top income tax rate has increased from 5.5% to 5.75% for (1) individuals with income in excess of $250,000, and (2) spouses filing a joint return, surviving spouses or heads of household with income in excess of $300,000. The law reduces the maximum allowed for certain personal and dependent exemptions for individuals with income in excess of $100,000 ($150,000 for joint filers). The comptroller is required to waive interest and penalties on individual estimated tax for calendar year 2012 to the extent that the comptroller determines that the interest or penalty would not have been incurred but for an increase in the tax rates or reduction in exemption amount for calendar year 2012. In addition, a fiduciary must include the amount of income of an electing small business trust derived from stock in an S corporation for the purpose of calculating federal adjusted gross income, beginning with tax year 2013. (S.B. 1302, Laws 2012, approved May 22, 2012, effective as noted above.)

The wage-bracket tables are reproduced in this Report beginning at 6618.

The percentage method withholding tables are reproduced beginning at 6629.

Employers should use the Nonresident table, the Maryland Residents Working in Delaware table, or the correct withholding table as follows:

In addition, the supplemental wage rates have increased. The rates for each jurisdiction are as follows:

(Maryland Employer Guide, Revised June 2012;

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