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Payroll Tax Changes in 2014
Dec 16, 2013
Part of my job is to ensure that my clients understand the value of outsourcing their payroll to HireLevel. Understanding employer payroll taxes isn’t their job, it’s ours. I’ve learned through meetings and conversations with business owners that running their business and being profitable is what matters. As I reflect over the past year and look to the New Year, the IRS is also looking forward to 2014. I came across an article that highlights the IRS’ changes we will see in 2014 and thought it was important to share.
- If your salary allows it, you may be subject to a bit more tax liability for Social Security in 2014. The tax rate will stay the same at 6.2%; however the earnings base in 2014 is $117,000. That is up from $113,000 in 2013. Keep in mind that 6.2% is paid by the employer and employee.
- Attention employees who live in these states: Arkansas, California, Connecticut, Delaware, Georgia, Indiana, Kentucky, Missouri, New York, North Carolina, Ohio, Rhode Island, the Virgin Islands and Wisconsin. If your state has not paid their loan of its unemployment benefits liabilities to the federal government within the allowable time frame, you could owe more in Federal unemployment taxes. This is part of the FUTA credit reduction plan that is in place currently. For more information, please visit the IRS’ website.
- Wanting to contribute more to your 401(k) in 2014? You can’t; due to the IRS announcing the limits on contributions to 401(k) plans will remain unchanged in 2014. There are some increases expected to see with other pension plan limitations, however. To see the full list of pension plan limitations increases check out the IRS’ website for the announcement.
Make your New Year’s resolution be that you want to get your payroll process efficient. Live up to your resolution and contact us today! Here’s to a new year!
Read our other blogs for more payroll information for your business.
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