The .9% Medicare surtax on individuals earning wages more than $200,000 per year ($250,000 for married couples).
The 3.8% Medicare surtax on net investment income for individuals with adjusted gross income greater than $200,000 ($250,000 for married couples).
Reversion back to the "pre- Bush" individual tax rate brackets of 15, 28, 31, 36 and 39.6 percent tax brackets (currently the tax brackets are 10, 15, 25, 28, 33 and 35 percent).
Expiration of the "Bush tax cuts" on dividend and capital gain income. Presently, the rates on qualified dividends and long term capital gains are 15%. If legislation is not passed these rates will jump as high as 39.6% for dividends and 20% for long-term capital gains. Adding on the Medicare surtax for investment income, the amounts could be as high as 43.4% and 23.8%, respectively.
Reduction in the amounts allowed for medical flexible spending accounts to a $2,500 annual cap.
Requirement for many businesses to report on an employee’s W-2 the cost of employer-sponsored health care coverage.
Expiration/reduction in bonus and Section 179 depreciation as well as pending legislation to reinstate those provisions for 2013.
Increased FUTA tax rates in certain states due to the depletion of state unemployment coffers which resulted in loans from the federal government. Employers in states that have not repaid those loans will incur higher FUTA taxes.
In addition, Cover & Rossiter will be holding seminars at both our Wilmington and Middletown offices to explain in more detail these changes and answer questions you may have. The dates of these seminars are as follows:
Wilmington office: September 25th 8:00 AM
October 23rd 5:30 PM
Middletown office: October 2nd 5:30 PM
Please feel free to contact Marie Holliday at (302) 691-2211 if you have any additional questions. To register for a seminar click
here or call 302.691.2224.
This is originally posted on our website
here.
