Government News

2018 Federal Rates

  • SSA wage base $128,400

  • Employee SS rate 6.2%

  • Employer SS rate unchanged 6.2%

  • Medicare rate 1.45%

  • Medicare rate for wages greater than $200,000  2.35%

  • Standard business mileage rate 54.5 cents per mile

  • Medical or Moving mileage rate 18 cents per mile

  • Service of charitable organizations mileage rate 14 cents per mile


 2018 RevenuE Fringe Benefit

  • Adoption credit-$13,840.00

  • FSA Limit- $2,650.00

  • Parking- $260.00

  • Transit Passes-$260.00

Medical Savings Accounts- Coverage Minimum

  • Self- $1,350.00

  • Family $2700.00


Pension Plan, Deferral Limits Announced for 2018

IRS announced the 2018 Pension Limits. See the list below.  

  • Employees who participate in 401(k), 403(b), most 457 plans and federal government’s Thrift Savings Plan maximum limit is $18,500

  • Catch-up amount for employees 50 and over who participate in the 401(k), 403(b), most 457 plans and federal government’s Thrift Savings Plan maximum limit is $6,000

  • The limit of IRA annual contribution is $5,500

  • Catch-up amount for IRA for employees 50 and over is $0

  • Employees who participate in 415(c)(1)(A) is $55,000

  • Highly compensated employee under Section 414(q)(1)(B) salary threshold amount is $120,000

  • Key employee in top heavy plan under I.R.C. Section 416(i)(1)(A)(l) salary threshold is $175,000

  • Qualified Plan compensation general annual limit is $275,000

For more information please visit the IRS Pension Plan website.   


2017 FUTA Credit Reduction States

On November 2, 2017, the U.S. Department of Labor (DOL) announced 1 state and the Virgin Islands will be subject to the  FUTA credition for 2017.  This means the employers in these states will be requried to pay additional FUTA taxes in 4th quarter FUTA tax deposit due no later than January 31, 2018.

The reasons why the employers are subject to this tax is due to their states unable to pay back the outstanding federal unemployment loans by November 10, 2017.  Below is the list of the 1 state and Virgin Islands along with their FUTA credit reduction rate for 2017. 

State

2017 Credit   Reduction

2017   FUTA Rate

California

2.1%

2.7%

Virgin   Islands

2.1%

 2.7%

 

California and the Virgin Islands requested a waiver of the additional Benefit Cost Rate (BCR) for 2017 and were approved.


State Updates

The following states below has announced their 2018 Wage Base Limits

Alabama

$8,000

Nevada

30,500

Alaska

39,500

New Hampshire

14,000

Arizona

7,000

New Jersey

33,700

Arkansas

10,00

New Mexico

24,200

California

7,000

New York

11,100

Colorado

12,600

North Carolina

23,500

Connecticut

15,000

North Dakota

35,500

Delaware

16,500

Ohio

9,500

District of Columbia

9,000

Oklahoma

17,600

Florida

7,000

Oregon

39,300

Georgia

9,500

Pennsylvania

10,000

Hawaii

45,900

Puerto Rico

7,000

Idaho

38,200

Rhode Island

**23,000

Illinois

12,960

South Carolina

14,000

Indiana

9,500

South Dakota

15,000

Iowa

29,900

Tennessee

7,000

Kansas

14,000

Texas

9,000

Kentucky

10,200

Utah

34,300

Louisiana

7,700

Vermont

17,600

Maine

12,000

Virgin Islands

24,200

Maryland

8,500

Virginia

8,000

Massachusetts

15,000

Washington

47,300

Michigan

*9,500

West Virginia

12,000

Minnesota

32,000

Wisconsin

14,000

Mississippi

14,000

Wyoming

24,700

Missouri

12,500

West Virginia

12,000

Montana

32,000

Wisconsin

14,000

Nebraska

9,000

Wyoming

24,700

 

*Michigan - Effective third quarter 2015, the taxable wage base decreases to $9,000 for contributing employers that are not delinquent on UI payments (i.e., most employers). The reduction will continue for calendar year 2018.

**Rhode Island - The 2018 taxable wage base for employers in the highest UI tax rate group is $24,500


Forms & Publications

Form 1096

Form 1099 Misc.

Form I-9

Form W-2

Form W-2C

Form W-3

Form W-4

Form WH347

Form 940

Form 940 (Schedule A)

Form 941

Form Form 941 Schedule B

Form 943

Form 944

Publication 15 (Circular E), Employer's Tax Guide

Publication 15-A Employer's Supplemental Tax Guide

Publication 15-B Employer's Tax Guide to Fringe Benefits

Publication 509 Tax Calendars
 

Resource Links

401K Helper

American Payroll Association (APA)

APA's new website on Paycards

Direct Deposit Information 

EEOC 

Employment Taxes

Department of Labor

Federal Office of Child Support Enforcement

Federal Tax Withholding

IRS 

IRS Services Guide

NACHA

National Archive & Records Administration 

Society for Human Resource Management (SHRM)

VA-4 Employee's Witholding Exemption Certificate

Tax Calendars (IRS Publication 509)

Virginia New Hire Form

Virginia Statewide Payroll Conference

Unclaimed Property

Understanding W-2 Forms

US Dept of Health & Human Services  

U S Immigration

Resource Material

Bloomberg BNA 

IRS Service Guide

RIA and WG&L

Tax Analysts

Wolters Kluwer CCH Payroll Management Guide

Virginia Affiliated APA Chapters

Colonial Capital Chapter

Hampton Roads Chapter

Richmond Chapter

Shenandoah Valley Chapter of the APA

Southwest Virginia Chapter of the APA

Washington Metro Area Chapter

Charles Town West Virginia Chapter