Halfway through 2016 - hard to believe!!
Amusement parks will soon be full of thrill seekers, twisting, twirling and being propelled up and down – which is awesome for roller coaster enthusiasts, but a little perplexing for payroll costs and small business owners.
Have you ever wondered why your payroll costs are so much higher at the start of the year and drop around this time of year? The drop in payroll costs is because employees reach wages limits for the fiscal year. The following shows the wage limit for taxes and FICA contributions for 2016;
• FICA the limit is $118,500
• MA Unemployment wage limit is $15,000
• NH Unemployment wage limit is $14,000
• Federal Unemployment - Wage limit $7,000
Most employees will have met the first two limits so you are no longer paying State or Federal Unemployment on their wages. When hiring a new employee that starts at any point in the year, they will be subject to the same limits.
Other limits to consider at this time of year are IRAs and 401(k)s:
Simple IRA Max - $12,500
401K Max - $18,000
Will you be 50 years old by 12/31/2016? You are eligible to participate in catch up that allows, this you an additional $6,000 for your 401K contributions and $3,000 for your IRA contributions.
For more information on catch-up contribution provisions or other investment related questions, please contact J. Bradford Investment Management.
And for more information on Payroll and HR Services, please contact the author of this blog, Zoe Hornsby of Advantage Payroll Services: firstname.lastname@example.org
- Investing and investment management involves risk, including the loss of your initial investment or any investment gains.
- Past performance is no guarantee of future results.
- This generic information is provided for educational purposes only and should not be construed as a recommendation for any individual to take a specific action.
- Please invest prudently and seek professional help from a financial advisor, investment manager, accountant, lawyer or other professional on matters that you are unsure of or that are unique to your personal circumstances.
- Financial Advisor and Investment Management Services provided by J. Bradford Investment Management, Nashua NH.