Treasurers’ payroll tax update

Railroad Retirement, Social Security, Medicare and Railroad Unemployment Insurance payroll taxes have changed for 2011.

Following are the tax rates:

 Railroad Retirement Tier I:

• Paid by employer: 6.20% on wages up to $106,800.
• Paid by employee: 4.2% on wages up to $106,800.

Social Security (non-railroad employment):

• Paid by employer: 6.2% on wages up to $106,800.
• Paid by employee: 4.2% on wages up to $106,800. 

Medicare (railroad and non-railroad employment):

• Paid by employer: 1.45% on all wages (no cap).
• Paid by employee: 1.45% on all wages (no cap).

 Railroad Retirement Tier II

• Paid by employer: 12.1% on wages up to a $79,200.
• Paid by employee: 3.9% on wages up to $79,200.

 Railroad Unemployment Insurance:

• Paid by employer: 3.15% on wages up to $15,960.
• No tax on employee.