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UHY LLP Michigan Practice
NOVEMBER 2016
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SOCIAL SECURITY WAGE BASE INCREASES 7% FOR 2017
By Tom Bowen, CPA
The Social Security Administration (SSA) recently announced a 2017 cost-of-living adjustment for the Social Security taxable wage limit. The maximum amount of earnings subject to Social Security tax for 2017 will increase by 7% to $127,200 from $118,500 in 2016.
The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees, and self-employed workers. The first one is for Old Age, Survivors and Disability Insurance (OASDI or Social Security tax) and the second one is for Hospital Insurance (HI or Medicare tax).
The employer matching rate for 2017 remains unchanged with the FICA tax rate being 7.65% which consists of 6.2% for Social Security tax and 1.45% for Medicare tax.
For 2017, an employee will pay: - 6.2% Social Security tax on the first $127,200 of wages (maximum tax for this portion is $7,886.40), plus
- 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns and $125,000 for married taxpayers filing a separate return), plus
- 2.35% Medicare tax (1.45% Medicare tax + 0.9% additional Medicare tax) on all wages in excess of $200,000 ($250,000 for joint returns and $125,000 for married taxpayers filing a separate return).
For 2017, a self-employed person will pay:
- 12.4% of Social Security tax on the first $127,200 of self-employment income (maximum tax for this portion is $15,772.80), plus
- 2.9% Medicare tax on the first $200,000 of self-employment income ($250,000 of combined self-employment income on a joint return and $125,000 on a separate return), plus
- 3.8% (2.9% Medicare tax + 0.9% additional Medicare tax) on all self-employment income in excess of $200,000 ($250,000 of combined self-employment income on a joint return and $125,000 for married taxpayers filing a separate return).
For more information or questions on this adjustment, please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com. |
ARIZONA TAX AMNESTY PROGRAM EXPIRES OCT. 31
Arizona Tax Amnesty Program is in process and expires October 31, 2016. If you have an existing tax liability for tax due or failed to file tax returns, you may be eligible to participate in the program. If approved, interest and penalties can be waived for the periods in question. The following taxes are covered under the program: individual Income (resident and non resident), corporate income, and transaction privilege (sales tax). The periods that are eligible cover taxes due on an annual basis for any tax year ending before 1/1/14. For monthly and quarterly filings, the tax periods are those ending before 2/1/15.
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AARON WITALEC, MANAGING DIRECTOR OF UHY CORPORATE FINANCE, M&A THOUGHT LEADER As reported in Dykema's 2016 M&A Outlook Survey: For the first time since the 2008 survey, respondents said that US financial buyers topped strategic buyers for having the most influence on US deal valuation over the past year. Financial buyers might have been more influential in the past 12 months because of increased interest in deals worth $5 million or less from private equity firms, according to Aaron Witalec of UHY Corporate Finance. "They're coming down-market and influencing the valuations versus strategics. As a result, strategics are slowing down their bidding and focusing more on inward operations." Click here to view the full report.
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OHIO COMMERCIAL ACTIVITY TAX PAYMENT DUE NOV. 10 The Ohio commercial activity tax (CAT) third quarter return and payment is due November 10, 2016. Electronic filing and payment is mandatory. Use the Ohio Business Gateway to file and pay.
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UHY ADDS MEMBER FIRM IN AFGHANISTAN
Strengthening UHYI's presence in the Asia-Pacific region, Ahmed Hassan Naeem Chartered Accountants (Afghanistan) brings extensive experience in audit, accounting, tax and management consultancy combined with an inspiration to nurture talent and create a quality hub to cater for the ever-increasing demands of their existing client portfolio and the wider business community in the region, including Iran and Tajikistan. Click to see the full press release, or to view a map of all UHY locations.
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EVENTS CALENDAR
11/3 UHY LLP Annual Construction Outlook Click here
11/10 UHY LLP Annual Not-For-Profit Update Click here
12/8 UHY LLP Annual Accounting & Business Conference Click here
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Published by UHY LLP News.
Copyright � 2016 UHY LLP. All rights reserved.
Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.
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