Payroll Updates for 2017
Employee & Employer Withholdings & Limitations
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- Social Security – Rate for both the employee and employer stays the same @ 6.2% (.062). The wage base increases from $118,500 to $127,200.
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- MEDICARE – Rate for both the employee and employers stays the same @ 1.45% (.0145); also, the withholding tax rate for high-earning employees is still an additional 0.9% for wages paid to an employee over $200,000. This makes the effective Medicare tax rate for high-earning employees @ 2.35% (.0235) for wages over $200,000. This does not affect the employer rate.
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- 401(k), 403(b) & 457 Plans – Limitations for elective deferrals (contribution) for employees who participate remains at $18,000 and the catch-up for participants aged 50 and over remains at $6,000.
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- SIMPLE Plan – Limitations for elective deferrals will remain at $12,500 and catch-up for participants aged 50 and over remains at $3,000.
- PA State Unemployment Wage Base – Changed from $9,500 to $9,750.
Other Updates
Mileage Rates
- 53.5¢ per mile for business miles driven in 2017
- 17¢ per mile driven for medical or moving purposes in 2017
- 14¢ per mile driven in service of charitable organizations in 2017
HSA Contribution Limits – Individuals increased to $3,400, family remains at $6,750. Additional catch-up of $1,000 allowed for those 55 and over.
HDHP Minimum Required Deductibles – Limits will remain for individual at $1,300 and family at $2,600.
Out-of-Pocket Maximum Limits – Individuals $6,550 and family $13,100.
New Filing Dates
W-2 Filing 2017 Due Dates
- Recipient copy due to employee — January 31 (no change)
- Paper copy A due to Social Security Administration — January 31 (last year February 28)
- Electronic copy A due to Social Security Administration — January 31 (last year March 31)
1099-MISC Filing 2017 Due Dates
- Recipient copy due to employee — January 31 (no change)
- Paper filing due to IRS — January 31 (last year February 28)
- Electronic filing due to IRS — January 31 (last year March 31)
If you have other questions about employee and employer withholdings and limitations, contact Simon Lever today.
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