Publication 15-A Provides Useful Information for Employers

Posted by BAS - 23 February, 2017

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The IRS issued its 2017 version of Publication 15-A, Employer's Supplemental Tax Guide.  Publication 15-A provides detailed employment tax information, including information about the employment tax treatment of noncash compensation.  Employers find this publication helpful for structuring the filing and reporting of tax information for employees. 

Publication 15-A begins with a discussion of the different business relationships between employers and individuals.  It discusses independent contractors, common-law employees, statutory employees and statutory non-employees. The document also addresses the potential penalties for misclassifying workers.

The document confirms that the social security tax rate is 6.2% for employees and employers, which is unchanged from 2016.  The social security wage base limit is $127,200.  The Medicare tax rate is 1.45% for employees and employers, which is also unchanged from 2016.  There is no wage base limit for Medicare tax. 

The publication also includes the 2017 Formula Tables for Percentage Method Withholding; Wage Bracket Percentage Method Tables; Combined Federal Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables; and Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members.

A copy of Publication can be accessed here.  

 


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