2012 Payroll Changes 

Temporary Payroll Tax Cut Continuation Act of 2011

The above Act extended the current 4.2% Social Security withholding through February 29, 2012. Congress and the White House have expressed their intention to pursue further legislation to extend this reduced rate through the end of 2012.

Metropolitan Commuter Transportation Mobility Tax (MCTMT)

Recent legislation will affect how employers and self-employed individuals (including partners) calculate their MCTMT for 2012. NYS has not issued any additional information on this subject.

Social Security Taxable Wage Limit

The taxable wage limit for 2012 is $110,100.00

Employee Frequency of Pay - NYS Labor Law Section 191

Employers covered by New York's wage payment law must pay manual workers at least weekly and all other salaried workers at least twice a month. Commissioned sales persons must be paid at least once a month. All employees are covered, except those specifically exempt by the statute; among those exempt are executive, administrative, or professional employees earning more than $900 a week. The New York State Labor Law defines a manual worker as a mechanic, workingman or laborer. Furthermore, an individual who spends more than 25% of his/her working time engaged in physical labor, fits within the meaning of the term manual worker.

 Wage Theft Prevention Act - NYS Labor Law Section 195

Employers are required to provide notice to employees of their rates of pay, designated pay day, the employer's intent to claim allowances (for example, tip or meal allowances) as part of the minimum wage, and the basis of wage payment (whether paying by hour, shift, day, week, piece, etc.). The law requires that the notice contain the employer's "doing business as" names and that it be provided at the time of hiring, annually on or before February 1st of each year of employment and within 7 days of a change if the change is not listed on the employee's pay stub for the following pay period. The notice must be provided in the employee's primary language, as identified by the employee. Employers can develop their own notices as long as they contain all the information required by law or can use templates provided by the Department of Labor. The Act also amends the recordkeeping and statutory payroll record and paystub requirements to include information currently required pursuant to regulation and requires employers to maintain copies of payroll records for six years.

You can obtain further information by visiting the NYS Department of Labor website at www.labor.state.ny.us,  by writing to: New York Department of Labor Standards, Building 12, State Office Campus, Albany, NY 12240, by callling (518) 457-8452 and if you need additional assistance, please feel free to contact our office.

By Jennifer Goldman