Monthly Archives

January 2012

Social Security Wage Base

By | 2012, Tax Tips

The Social Security wage base is $110,100 in 2012, a $3,300 increase over 2011 and the first jump since 2009. The employee social security tax rate of 4.2% has been extended by Congress for 2 months. It is expected that this will be extended for the full year of 2012.

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Retirement Plan Contributions

By | 2012, Tax Tips

There has been an increase in some retirement plan contributions for 2012. See the chart below for a comparison of 2011 and 2012 amounts:

2012 2011
401(k), 403(b), SARSEP, 457 $17,000 $16,500
SIMPLE Plans $11,500 $11,500
IRA $5,000 $5,000
Defined Contrilbution Wage Limit $50,000 $49,000

The over 50 catch up amounts remain $5,500 for 401(k). $2,500 for SIMPLE and $1,000 for IRA’s.

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Football Stadium District Sales Tax Expired December 31, 2011

By | 2012, Tax Tips

Beginning January 1, taxpayers will no longer pay the one-tenth of one percent Football District sales/use tax. The Metropolitan Football Stadium District (FD) tax will end on December 31, 2011 as planned in the law that established the tax.

Taxpayers should not pay this tax after December 31 and businesses should not collect the tax after December 31. The Football District has generally the same geographic boundaries as the Denver area’s Regional Transportation District (RTD). For more information regarding RTD and FD boundaries, please see the form DR 1002 on the Colorado Department of Revenue website www.colorado.gov/revenue.

Exceptions
Leases that are still in effect after December 31 may be subject to the Football Stadium District (FD) tax through the life of the contract. Businesses should use the form DR 0200, Colorado Baseball/Football District – Supplement to report the FD tax collected through leases. The same form should be used to report the Baseball Stadium District (BD) tax still being collected on leases entered into before January 1, 2001 that are still in effect.

The RTD and the Scientific and Cultural Facilities District (CD) taxes remain in effect in the Denver area. The RTD tax rates is 1% (one percent) and the CD tax rate is 0.1 % (one-tenth of a percent) for a total Denver metropolitan special district tax of 1.1%.

History
The Metropolitan Football Stadium District tax went into effect Janaury 1, 2001 to help fund construction of Invesco Field at Mile High, now known as Sports Authority at Mile High. The sales tax replaced the Denver Metropolican Major League Baseball Stadium District (BD) Tax.

Please make sure this change is made to your accounting systems effective 01/01/2012.

Contact Us or call today: 303.232.8300