Payroll Tax Update:
Revised for 2007 - Effective January, 2007

If you use the Mini-StoragePlus Payroll feature you will need to update tax and FICA rates for 2007. Circular E, Employer’s Tax guide contains this information and was recently mailed to all employers by IRS. If you did not receive your 2007 Circular E call 1-800-TAX-FORM (1-800-829-3676), fax 703-368-9694 or visit http://www.irs.gov/pub/irs-pdf/p15.pdf to view a copy.

NOTE: This information is provided and for convenience only.
             HI-TECH is not responsible for any errors or omissions.  

Employment Tax Rates and Wage Bases for 2007 are:

Social Security Tax: 6.2% tax rate for employers and employees $97,500 wage base

Medicare Tax: 1.45% tax rate for employers and employees All wages are subject to Medicare tax

Federal Unemployment Tax: 6.2% before state credits – employers only $7,000 wage base

Please edit your MSP Payroll Tax Rates after you have done the final payroll for 2006 to reflect the above changes for 2007. Select Accounting menu | Payroll | Maintain Payroll Tax Rates to enter the changes.

Payroll Tax Rate Tables                                  

+-----------------------Selected Table: Federal Withholding-------------------+

¦      (a) SINGLE person   ¦          ¦        (b) MARRIED person ¦           ¦

¦ Over--   But not over--  ¦Percent   ¦   Over--  But not over--  ¦Percent    ¦

¦ -------------------------+-------   ¦   ------------------------+-------    ¦

¦          0       51.00   ¦      0   ¦         .00      154.00   ¦      0    ¦

¦      51.00      195.00   ¦     10%  ¦      154.00      449.00   ¦     10%   ¦

¦     195.00      645.00   ¦     15%  ¦      449.00    1,360.00   ¦     15%   ¦

¦     645.00    1,482.00   ¦     25%  ¦    1,360.00    2,573.00   ¦     25%   ¦

¦   1,482.00    3,131.00   ¦     28%  ¦    2,573.00    3,907.00   ¦     28%   ¦

¦   3,131.00    6,763.00   ¦     33%  ¦    3,907.00    6,865.00   ¦     33%   ¦

¦   6,763.00               ¦     35%  ¦    6,865.00               ¦     35%   ¦

¦                          ¦          ¦                           ¦           ¦

¦                          ¦          ¦                           ¦           ¦

¦ --------------------------------------------------------------------------  ¦

¦                                                                             ¦

¦ One Withholding Allowance:      65.38                                       ¦

¦                                                                             ¦

+-----------------------------------------------------------------------------+

Update both the Single and Married person portions of the table.

Please check with your state tax office for your state tax requirements., and update the State Tax Withholding table in Mini-StoragePlus to reflect your state's withholding rates.