Government News

2016 Federal Rates

  • SSA wage base $118,500

  • 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 cents per mile

  • Medical or Moving mileage rate 19 cents per mile

  • Service of charitable organizations mileage rate 14 cents per mile


 2016 Fringe Benefit

The IRS released the Revenue Procedure 2015-53. This publication gives employers the 2015 rates for fringe benefits that are not pension plan related. Some of these items are familiar to some and not to others. Below are some of the 2015 Fringe Benefits 

  • Adoption credit- $13,460.00 

  •  FSA limit $2,500.00

  • Parking -$255.00

  • Transit Passes- $130.00

 Medical Savings Ac5ounts-Coverage Minimum

  • Self-only $2,200.00

  • Family $4,450.00


Pension Plan, Deferral Limits Announced for 2016

IRS announced the 2016 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 $18,000

  • 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 $1,000

  • Employees who participate in 415(c)(1)(A) is $53,000

  • Highly compensated employee under Section 414(q)(1)(B) salary threshold amount is $120,0

  • Key employee in top heavy plan under I.R.C. Section 416(i)(1)(A)(l) salary threshold is $170,000

  • Qualified Plan compensation general annual limit is $265,000

For more detail information visit the IRS link,  https://www.irs.gov/uac/Newsroom/IRS-Announces-2016-Pension-Plan-Limitations%3B-401(k)-Contribution-Limit-Remains-Unchanged-at-$18,000-for-2016.

 

For more information please visit the IRS Pension Plan website.   


2015 FUTA Credit Reduction States

On November 10, 2014, the U.S. Department of Labor (DOL) announced 6 states and the Virgin Islands will be subject to the  FUTA credition for 2014.  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, 2016.

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, 2015.  Below is the list of the 6 states and Virgin Islands along with their FUTA credit reduction rate for 2015. 

State

2015 Credit   Reduction

2014   FUTA Rate

California

1.5%

1.2%

Connecticut

2.1%

1.7%

Ohio

1.5%

1.2%

Virgin   Islands

1.5%

1.2%

 


State Updates

The following states below has announced their 2015 Wage Base Limits

State Wage Base State Wage Base Alabama

$8,000

Nebraska

9,000

Alaska

39,700

Nevada

27,800

Arizona

7,000

New Hampshire

14,000

Arkansas

12,000

New Jersey

32,000

California

7,000

New Mexico

23,400

Colorado

12,200

New York

10,500

Connecticut

15,000

North Carolina

21,700

Delaware

18,500

North Dakota

35,600

District of Columbia

9,000

Ohio

9,000

Florida

7,000

Oklahoma

17,000

Georgia

9,500

Oregon

35,700

Hawaii

42,200

Pennsylvania

9,000

Illinois

12,960

Puerto Rico

7,000

Indiana

9,500

Rhode Island

**21,200

Iowa

28,300

South Carolina

14,000

Kansas

14,000

South Dakota

15,000

Kentucky

10,200

Tennessee

9,000

Louisiana

7,700

Texas

9,000

Maine

12,000

Utah

31,300

 

**The Employees in the highest UI tax rate group will increase to $22,700 


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-2015
 

Resource Links

401K Helper

American Accounts Payable Association (AAPA)

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 Local APA Chapters

Colonial Capital Chapter

Hampton Roads Chapter

Richmond Chapter

Shenandoah Valley Chapter of the APA

Southwest Virginia Chapter of the APA