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Federal
Individual Income Tax
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New Jersey Individual Tax
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Rates remained the same for 2009. Bracket amounts, the standard
deductions, and the phase-out of personal exemptions have been adjusted
for cost of living increases.
The personal exemption for 2009 will be $3,650. (See schedule 1 for tax brackets,
rates, standard deductions, and phase out of personal exemptions).
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New Jersey individual tax brackets
remain the same for 2009. The
tax rates start at 1.4% with a graduating tax schedule rising to a
maximum tax bracket of 8.970% (See schedule 2 for tax brackets and
rates).
Pennsylvania Individual Tax
The Pennsylvania
individual income tax withholding rate remains at 3.07% for 2009.
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Social
Security Tax
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Philadelphia Wage Tax
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Social security tax is broken into two
sections, Social Security and Medicare. The following is each section's
rate and base for 2009:
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The withholding rate for Philadelphia City Wage Tax will be reduced,
effective January 1, 2009, to 3.93% (.0393) for residents and 3.50%
(.035) for non-residents.
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Social Security
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Medicare
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Rate
Base
Maximum
Employer
Portion
Maximum
Employee
Portion
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6.2%
$106,800
$6,621.60
$6,621.60
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1.45%
Unlimited
Unlimited
Unlimited
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Federal
Unemployment Tax
Federal Unemployment Tax remains at 6.2% with a
maximum state credit of 5.4% for a net tax of .8% (.008) on the first
$7,000 of wages per employee.
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Pennsylvania
The maximum taxable wages for Pennsylvania
Unemployment remains at $8,000 per employee. The surcharge on employer
contributions remains at 5.8% (.058). Also, the employer additional
contribution remains at 0.25% (.0025). Additionally, the percentage of
employee wages required to be withheld
as unemployment compensation tax remains at .06% (.0006). This .06% tax does not have a wage
limit.
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New
Jersey
The maximum taxable wages for New Jersey
Unemployment and Disability will increase to $28,900 per employee. The withholdings rate will
increase to 1.015% (.01015).
The employee percentage is divided as follows:
2009
0.0000%
Healthcare Subsidy
0.3825%
Unemployment
0.0425%
Workforce development
0.5000%
Disability
0.0900%
Family Leave Insurance
1.0150%
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IMPORTANT REMINDERS
401(k)
Limits
The maximum employee contributions will
increase to $16,500 for 2009.
Please note that this contribution is limited to the lesser of $16,500
or the percentage of wages specified in your 401(k) Plan document. The maximum employee contributions
for employees age 50 or older is $22,000 for 2009. The contribution is limited to the
lesser of $22,000 or the percentage of wages specified in your 401(k)
Plan document.
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Minimum
Hourly Wage
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Amount
Effective Date
Federal
$6.55
July
24, 2008
Federal
$7.25
July
24, 2009
New Jersey $7.15 October 1, 2006
New Jersey
$7.25
July
24, 2009
Pennsylvania
$7.15
July
1, 2007
Pennsylvania
$7.25
July
24, 2009
PA Small
Employers*
$7.15
July 1,
2008
$7.25
July
24, 2009
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*Employers with equivalent of 10 or fewer
full-time employees calculated on a 40-hour work week.
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Who
to contact
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If you have any questions please contact:
Fred Schutz
Tax Manager
856-722-5300 ext 201
email:
fred.schutz@hfco.com
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The information contained herein is general
in nature and is based on authorities that are subject to change. It is not intended, and should not
be construed, as legal, accounting or tax advice or opinion provided by
Haefele, Flanagan & Co., PC
to the reader. This
material may not be applicable to, or suitable for, the specific
circumstances or needs, and may require consideration of non-tax and other
tax factors. Contact Haefele, Flanagan & Co., PC prior to taking any
action based upon this information.
Haefele, Flanagan &
Co., PC assumes no obligation to inform the reader of any changes in tax
laws or other factors that could affect the information obtained herein.
FEDERAL PERSONAL
INCOME TAX RATES FOR 2009
Taxable Income Tax
Bracket
But Not
Over
Over
Single
Individuals
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$
-0- -
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$ 8,350
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10% of the taxable
income
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8,350 -
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33,950 -
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$835 plus 15% of the excess over $8,350
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33,950 -
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82,250 -
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$4,675 plus 25% of the excess over $33,950
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82,250 -
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171,550 -
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$16,750 plus 28% of the excess over $82,250
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171,550 -
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372,950 -
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$41,754 plus 33% of the excess over $171,550
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372,950 -
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Over
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$108,216 plus 35% of the excess over $372,950
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Standard Deduction
$5,700
Phase out of personal
exemptions begins at $166,800
Married
Filing Jointly and Surviving Spouses
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$
-0- -
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$
16,700
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10% of the taxable income
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16,700 -
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67,900
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$1,670 plus 15% of the excess over $16,700
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67,900 -
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137,050
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$9,350 plus 25% of the excess over $67,900
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137,050 -
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208,850
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$26,637.50 plus 28% of the excess over $137,050
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208,850 -
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372,950
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$46,741.50 plus 33% of the excess over $208,850
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372,950 -
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Over
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$100,894.50 plus 35% of the excess over
$372,950
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Standard Deduction
$11,400
Phase out of personal
exemptions begins at $250,200
Married
Filing Separately
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$
-0- -
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$ 8,350
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10% of the taxable
income
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8,350 -
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33,950
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$835 plus 15% of the excess over $8,350
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33,950 -
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68,525
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$4,675 plus 25% of the excess over $33,950
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68,525 -
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104,425
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$13,318.75 plus 28% of the excess over $68,525
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104,425 -
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186,475
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$23,370.75 plus 33% of the excess over $104,425
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186,475 -
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Over
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$50,447.25 plus 35% of the excess over $186,475
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Standard Deduction
$5,700
Phase out of personal
exemptions begins at $125,100
Head of Household
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$
-0- -
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$
11,950
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10% of the taxable
income
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11,950 -
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45,500
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$1,195 plus 15% of the excess over $11,950
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45,500 -
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117,450
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$6,227.50 plus 25% of the excess over $45,500
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117,450 -
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190,200
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$24,215 plus 28% of the excess over $117,450
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190,200 -
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372,950
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$44,585 plus 33% of the excess over $190,200
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372,950 -
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Over
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$104,892.50 plus 35% of the excess over
$372,950
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Standard Deduction
$8,350
Phase out of personal
exemptions begins at $208,500
*See Circular E for withholding amounts that
should be made through payroll.
NEW JERSEY INCOME TAX RATES
New
Jersey Income Tax Rates for 2009 remain the same as the 2008 Income Tax
Rates.
FOR MARRIED PEOPLE FILING JOINTLY, HEADS
OF HOUSEHOLDS
AND SURVIVING SPOUSES
Taxable Income Tax Rate
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Not over $20,000
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1.4%
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$20,001 - $50,000
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$280 plus 1.750%
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of excess over $20,000
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$50,001 - $70,000
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$805 plus 2.450%
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of excess over $50,000
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$70,001 - $80,000
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$1,295.50 plus 3.500%
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of excess over $70,000
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$80,001 - $150,000
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$1,645 plus 5.525%
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of excess over $80,000
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$150,001 - $500,000
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$5,512.50 plus 6.370%
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of excess over $150,000
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Over $500,000
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8.97% of excess over $500,000
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FOR TAXPAYERS WHOSE FILING STATUS IS
SINGLE OR MARRIED PEOPLE FILING SEPARATE
RETURNS
AND ESTATES AND TRUSTS THE RATES ARE:
Taxable Income Tax Rate
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Not over $20,000
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1.4%
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$20,001 - $35,000
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$280 plus 1.750%
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of excess over $20,000
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$35,001 - $40,000
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$542.50 plus 3.500%
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of excess over $35,000
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$40,001 - $75,000
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$717.50 plus 5.525%
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of excess over $40,000
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$75,001 - $500,000
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$2,651.25 plus 6.370%
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of excess over $75,000
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Over $500,000
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8.97% of excess over $500,000
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