Paychex, Inc. explained the main focal points of the American Taxpayer Relief Act and its impact on Paychex customers and other small businesses and taxpayers. Paychex provides payroll, human resource and benefits outsourcing solutions for small and medium-sized businesses.
The Act, passed by Congress on Tuesday and signed by President Obama Wednesday night, allows for new payroll tax rates for 2013. Paychex customers will see the changes implemented in their payrolls beginning Friday, January 4, 2013.
“Paychex has a dedicated team of tax and payroll compliance professionals who have closely monitored every development related to the fiscal cliff,” said Martin Mucci, President and CEO of Paychex. “As soon as Paychex received the new tax tables from the IRS this morning, our team implemented the changes, and they are now in place for our clients’ payrolls effective tomorrow. I am proud of the Paychex employees who have not only closely monitored the complexities of these changes, but have quickly put them in place for our clients, continuing our commitment to provide exceptional service.”
The highlights of the American Taxpayer Relief Act include the expiration of the 2 percent payroll tax holiday as well as increase in tax rates for individuals earning more than $400,000 and families with incomes higher than $450,000. The tax rate increased from 35 percent to 39.6 percent. This will likely impact small businesses that file tax returns as individuals.