October 29, 2014
The Social Security Administration has announced that the wage base for computing the Social Security tax (OASDI) in 2015 will increase to $118,500 from $117,000, which was the wage base for 2014. The $1,500 increase , which is about 1.3%, is due to an increase in average total wages.
The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees, and self-employed workers—one for Old Age, Survivors and Disability Insurance (OASDI; commonly known as the Social Security tax), and the other for Hospital Insurance (HI; commonly known as the Medicare tax).
For 2015, the FICA tax rate for employers is 7.65% each—6.2% for OASDI and 1.45% for HI. For 2015, an employee pays:
For 2015, the self-employment tax imposed on self-employed people is:
There is a maximum amount of compensation subject to the OASDI tax, but no maximum for HI.
Federal Editorial Materials
Federal Taxes Weekly Alert Newsletter
Preview Documents for the week of 10/30/2014 – Volume 60, No. 44
Full – Preview articles for the week of 10/30/2014 – Volume 60, No. 44
© 2014 Thomson Reuters/Tax & Accounting. All Rights Reserved.
It’s graduation season, and for many parents that means it’s almost time to start shelling out for college tuition. For those well-prepared parents with established 529 plans in place, the time has come to tap into that money pool. Of course, when it comes to tax-advantaged savings, trust that the IRS is keeping close watch, so it’s important to avoid making any rookie mistakes. It’s also important to keep saving as you move forward.
Having a remote workforce can be challenging, especially if you are trying to build a positive, collaborative work environment. So, how do you create a sense of comradery when you have staff in remote locations? These tips can help:
If you are expecting a refund this year, you may be tempted to splurge on something not-so-practical. Before you do, take some time to think about ways to use your refund to bolster your financial health. We’ve put together a few ideas for you to consider: