Be aware that the wage base for Social Security (SS) has changed. Prior to 2017, anything above $118,000 was not taxable for SS purposes. That amount has risen to $127,200 for 2017.
SS is calculated in two parts, the amount withheld from the employee and the employer match. Both pay 6.2% of gross wages until the wage base is met. The maximum paid by both the employee and employer is now $7,886.40 ($127,200 x 6.2%) except for those who are self-employed. A self-employed individual pays both the employee and the employer portion of SS taxes. Self-employed will pay a maximum of $15,772.80 ($127,200 x 12.4%) for 2017.
Medicare remains at 1.45% of all earnings, unless the earned income is in excess of $200,000 ($250,000 if married filing jointly) when there is an increase of 0.9%.
Did you know we specialize in payroll processing? We can process your payroll for you, and stay on top of all the payroll tax changes so you don't have to. Call us today and let us take the burden of payroll reporting compliance off your shoulders.
SS is calculated in two parts, the amount withheld from the employee and the employer match. Both pay 6.2% of gross wages until the wage base is met. The maximum paid by both the employee and employer is now $7,886.40 ($127,200 x 6.2%) except for those who are self-employed. A self-employed individual pays both the employee and the employer portion of SS taxes. Self-employed will pay a maximum of $15,772.80 ($127,200 x 12.4%) for 2017.
Medicare remains at 1.45% of all earnings, unless the earned income is in excess of $200,000 ($250,000 if married filing jointly) when there is an increase of 0.9%.
Did you know we specialize in payroll processing? We can process your payroll for you, and stay on top of all the payroll tax changes so you don't have to. Call us today and let us take the burden of payroll reporting compliance off your shoulders.
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