Federal Payroll Tax Compliance - 2017


FEDERAL 2017 (Effective 7/24/2009)
Minimum Wage $7.25
Minimum Cash Wage (tipped Employees) $2.13
Maximum Tip Credit $5.12
Youth Sub-Minimum Wage $4.25
Maximum Taxable Earnings No Limit
Employee and Employer Tax Rate 1.45%
Additional Medicare Tax Withholding on Wages greater than $200,000 - No Employer Match) 0.9%
Maximum 2017 Taxable Earnings (Increased from $118,500 in 2015) $127,200
Employee and Employer Tax Rate 6.2%
Maximum Taxable Earnings $7,000
Percent of Taxable Wages 6.0%
Maximum Credit 5.4%
Normal Net Tax 0.6%
Flat rate withholding method 25%
Tax Rate on Pay > $1,000,000 39.6%
Self-Only Contribution Limit for Employee & Employer (Increased from $3,350 in 2016) $3,400
Family Contribution Limit for Employee & Employer $6,750
Catch-up Contribution Limit for Employee & Employer $1,000
Contribution Limit - For 401(k) & 403(b) plans $18,000
Catch-up Contribution Limit - 401(k) & 403(b) for taxpayer over age 50 $6,000


The publisher is not rendering legal, accounting, tax or other professional services. If legal advice or other assistance is required, an attorney, CPA or tax adviser should be consulted. Minimum wage rates may vary by industry and may be superseded by Federal minimum wage rules


Earnings Under Social Security

A social security beneficiary under full retirement age can earn $15,720 before benefits are reduced. For every $2 a person under full retirement age earns over $15,720, $1 is withheld from benefits. In the year an employee reaches full retirement age, $1 in benefits will be withheld for each $3 they earn above $41,880 until the month the employee reaches full retirement age. Once an employee reaches full retirement age or older, their benefits are not reduced regardless of how much they earn.


Agency Websites:


Internal Revenue Service - IRS.GOV

U.S. Department of Labor. Compliance assistance, statistics, research. For local DOL services, click your state on the map.

U.S. Department of Labor: State Minimum Wage and Overtime Pay Laws. Click your state on a map to get a summary of the law for your state.

U.S. Department of Labor: Workers' Compensation Requirements. Find out about benefits and requirements for your state.

U.S. Department of Labor: The Federal Wage Garnishment Law Fact Sheet #30. For assistance interpreting garnishment orders and conflicts, contact both the Federal Department of Labor and the state equivalent agency.

U.S. Department of the Treasury Publication 1494 , which contains tables for determining the Amount Exempt from a Federal Tax Levy.

Publication 15-B. Employer's Tax Guide to Fringe Benefits.

Publication 517. Social Security and Other Information for Members of the Clergy and Religious Workers.

Publication 525. Taxable and Non-Taxable Income.

Publication 557. Tax-Exempt Status for Your Organization.

Publication 596. Earned Income Credit. Please call us if you think an employee is eligible for EIC payments.

Publication 969. Health Savings Accounts and Other Tax-Favored Health Plans.

Social Security Online. Information on federal disability benefits, how to get your personal Social Security statement, and other topics related to Social Security.

U.S. Citizenship and Immigration Services.

Workerscompensation.com, a non-government, comprehensive resource for Workers' Compensation in every state, including forms.

IRS forms and publications. Forms for the current and past years.

Form SS-5. Application for a Social Security Card.

Form W-9. Use this form to request the taxpayer identification number from a contractor.

Form 1040-ES. Householders can use this form to make payroll tax deposits each year.

Form 1040 Schedule H Instructions. Household employers in New York may need these instructions to comply with FUTA requirements.

Form 941-V Payment Voucher. If you are certain that you are entitled to make your federal tax payment with your quarterly 941 form filing, you can use this payment voucher located on the IRS website. The payment voucher is on the third page of the Form 941 document.

Pay taxes electronically via EFTPS. Household employers may pay taxes electronically by signing up at the IRS website.

Change of address notice to IRS (form 8822). Use this form also to change the name of your company.

Reporting Tips to Your Employer. Instructions and copies of Form 4070 for reporting tips to employers.

Closing a Business. Your tasks regarding the IRS.




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