Guide to Payroll Costs for Employers
Costs for 2012
Social Security: 6.2% up to $110,100 wages/salary
Medicare: 1.45% on total wages/salary
Federal Unemployment Tax (FUTA): 0.6% up to $7,000 wages/salary
Federal Income Tax Payroll Withholding
State Income Tax Withholding
Unemployment Insurance (UI) contributions and administrative fund taxes range from: 1.00% - 6.30% of $27,000 wages/salary. For more information on UI contribution rates: http://uid.dli.mt.gov/tax/2012rateinsert1.pdf.
|Tax Rate||Wage Base|
|FUTA||0.6% - 6.2%||$7,000|
|UI||1.00% - 6.30%||$27,000|
Workers' Compensation (WC): Employers are required to have Workers' Compensation coverage for employees. Insurance companies base their rates on the type of industry and the employers' loss experience.