What’s New for 2014 Payroll- Related Taxes
Employees may notice changes in their first paychecks of 2014 due to some updated federal and state tax requirements. To help you understand these changes and help you to explain them to your employees, we've included what's staying the same and what's changing below. Our Accounting Services Department is happy to be of assistance if you have any additional questions.
Social Security and Medicare Tax
The taxable limit for social security has increased to $117,000.00. The tax rate has stayed the same at 6.2% each for employee and employer. The Medicare tax rate is 1.45% each for employee and employer, and is unchanged for 2014. The additional Medicare rate of.9% on wages over $200,000 (single) or $250,000 (joint) is also unchanged and is taxable for the employee only.
Federal Income Tax
The 2014 withholding tables and the withholding allowance have changed. Please refer to Internal Revenue Service Publication 15, Section 16 for the updated tables HERE.
Federal Unemployment Rate
The FUTA tax rate remains unchanged at 0.6% on each employee’s earnings up to $7,000.00.
Colorado State Unemployment Taxable Limit
SUTA taxable limit has increased to $11,700.00 per employee.
2014 Deferred Compensation/Pension Plan Limits:
TYPE OF PLAN
|
EMPLOYEE CONTRIBUTION LIMIT
|
EMPLOYEE CATCH UP*
|
401(k)
|
$17,500.00
|
$5,500.00
|
SIMPLE 401(k)
|
$12,000.00
|
$2,500.00
|
Roth 401(k)
|
$17,500.00
|
$5,500.00
|
Roth SIMPLE 401(k)
|
$12,000.00
|
$2,500.00
|
SIMPLE IRA
|
$12,000.00
|
$2,500.00
|
403(b)
|
$17,500.00
|
$5,500.00
|
|
|
|
Roth 403(b)
|
$17,500.00
|
$5,500.00
|
|
|
|
408(k) (SARSEP)
|
$17,500.00
|
$5,500.00
|
457
|
$17,500.00
|
$5,500.00
|
|
|
|
*Employee Catch-up: Employees age 50 and above.
|