Payroll Tax Info : Federal Tax Changes : Tax Data
*Federal Unemployment Tax for 2015The federal unemployment tax rate varies by state. 0.6% is the current base rate, but due to some states being behind in payments to the federal government, their tax rates have been increased. For companies in any of the following states: CA, KY, NC, NY and OH the adjusted rate for 2015 is 2.1% (0.021). Additionally, for companies in CT the rate is 2.6% (0.026) and for companies in IN, the rate is 2.4% (0.021). Companies in other states should use the base rate of 0.6% (0.006).Increase in the Federal Withholding Allowance for 2016Withholding allowances for self and dependents increases to $4,050.
Verify that the "ANNUAL EXEMPTIONS - SELF" and "DEPENDENTS" fields of the "US" (federal)
record of the Tax Data File is set to 4050.00.
No change in the FICA/Disability Employee Tax Rate for 2016The FICA/Disability Employee rate remains at 7.65%. Verify the "FICA/DISABILITY" field of the "US" (federal) record of the Tax Data File is set to 0.07650 for the EMPLOYEE TAX RATE. (Reference: Notice 1036) No change in the Social Security Base Wage Limit for 2016The Social Security wage base limit remains unchanged at $118,500 for wages paid in 2016. Verify the "FICA/DISABILITY - Employee Tax Rate" field of the "US" (federal) record of the Tax Data File is set to 118500.00 for the EMPLOYEE TAX WAGE LIMIT. (Reference: Notice 1036) Reference: Notice 1036 - Early Release Copies of the 2016 Percentage Method Tables for Income Tax Withholding, (Rev December 2015) |
