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Social Security wage base to increase for 2014
10
12
14
2014
2013
Increase
6.20%
6.20%
-0-
6.20%
6.20%
-0-
Social Security
wagebase
$117,000
$113,7000
$3,300
Maximum Social
Security tax for
employees
$7,254.00
$7,049.40
$204.60
1.45%
1.45%
-0-
1.45%*
1.45%
-0-
No limit
No limit
N/A
* Employers must withhold an additional Medicare tax of 0.9% of wages in excess of $200,000. There is no employer
matching contribution.
2013 limit
2014 limit
$17,500
$17,500
$17,500
$17,500
$5,500
$5,500
$2,500
$2,500
Lesser of $205,000
or 100% of the
participants three-yearhigh compensation
Lesser of $210,000
or 100% of the
participants three-yearhigh compensation
Lesser of $51,000
or 100% of the
participants
compensation
Lesser of $52,000
or 100% of the
participants
compensation
$1,035,000/$205,000
$1,050,000/$210,000
$115,000
$115,000
$165,000
$170,000
$255,000
$260,000
$550
$550
$12,000
$12,000
$100,000/$205,000
$105,000/$210,000
Section 402(g)(1)
Deferral limit for deferred compensation plans of
state and local governments and tax-exempts
Section 457(e)(15)
Dollar limitation for catch-up contributions for
participants age 50 or over in 401(k), 403(b),
governmental 457 plans and SEPs
Section 414(v)(2)(B)(i)
Dollar limitation for catch-up contributions for
participants age 50 or over to a SIMPLE IRA or a
SIMPLE 401(k)
Section 414(v)(2)(B)(ii)
Defined benefit plan limit1
Section 415(b)(1)(A)
Defined contribution plan limit
Section 415(c)(1)(A)
Maximum ESOP account balance is subject to
a five-year distribution period/increments for
additional year
Section 409(o)(1)(C)(ii)
Highly-compensated-employee dollar threshold
Section 414(q)(1)(B)
Definition of key employee in a top-heavy plan
officer compensation threshold
Section 416(i)(1)(A)(i)
Annual limit on includable compensation for
benefits and allocations2
Footnotes
1 For a participant who separated from service before
Business standard
$0.565
$0.560
Charity
$0.140
$0.140
$0.240
$0.235
Fringe-benefit inflation
adjustments for 2014
In Revenue Procedure 2013-35, the IRS published the inflation adjustments that will apply to
various fringe benefits in 2014.
Self-only coverage
Family coverage
Adoption assistance
The limit on qualified adoption assistance for 2014 is $13,190, up from $12,970 in 2013.
Arizona
Sedona
(March 1April 30)
California
The per diem rates for each locality of travel both within and outside
of the United States can be found at www.gsa.gov.
Monterey
(July 1Aug. 31)
Monterey
Napa
(Oct. 1Nov. 30; April 1Sept.30)
Napa
San Diego
San Diego
High-cost area*
Low-cost area
San Francisco
San Francisco
$251
$170
Santa Barbara
Santa Barbara
$181
$113
Santa Cruz
$65
$52
Santa Cruz
(June 1Aug. 31)
$5
$5
Santa Monica
Mariposa
Description
Lodging, meals and incidentals
Lodging only
Colorado
Aspen
(Dec. 1March 31; June 1Aug. 31)
Pitkin
Denver/Aurora
Steamboat Springs
(Dec. 1March 31)
Routt
Telluride
(Dec. 1March 31; June 1Sept. 30)
San Miguel
Vail
(Dec. 1Aug. 31)
Eagle
District of Columbia
Washington, DC
Key city
Key city
Florida
New York
Nassau
Fort Lauderdale
(Jan. 1May 31)
Broward
Glens Falls
(July 1Aug. 31)
Warren
Lake Placid
(July 1Aug. 31)
Essex
Key West
Monroe
Miami
(Dec. 1March 31)
Miami-Dade
Naples
(Jan. 1April 30)
Collier
Saratoga Springs/Schenectady
(July 1Aug. 31)
Westchester
Illinois
Chicago
(Oct. 1Nov. 30; March 1Sept. 30)
Louisiana
New Orleans
(Oct. 1June 30)
Kill Devil
(June 1Aug. 31)
Hancock
Pennsylvania
Philadelphia
Jamestown, Middletown and Newport
(Oct. 1Oct. 31; May 1Sept. 30)
Baltimore City
(Oct. 1Nov. 30; March 1Sept. 30)
Baltimore City
Charleston
(May 1May 31)
Cambridge/St. Michaels
(June 1Aug. 31)
Texas
Ocean City
(June 1Aug. 31)
Worcester
Massachusetts
Boston/Cambridge
Falmouth
(July 1Aug. 31)
Marthas Vineyard
(June 1Aug. 31)
Nantucket
(June 1Sept. 30)
Newport
Midland
Utah
Park City
(Dec. 1March 31)
Summit
Virginia
Washington, DC, metro area
Dukes
Virginia Beach
(June 1Aug. 31)
Nantucket
Washington
Seattle
New Hampshire
Philadelphia
South Carolina
Maryland
Conway
(July 1Aug. 31)
Dare
Rhode Island
Maine
Bar Harbor
(July 1Aug. 31)
North Carolina
Carroll
King
Wyoming
Jackson/Pinedale
(July 1Aug. 31)
Credit reduction
Arkansas
0.9%
1.5%
California
0.9%
1.5%
Connecticut
0.9%
1.5%
Delaware
0.6%
1.2%
Georgia
0.9%
1.5%
Indiana
1.2%
1.8%
Kentucky
0.9%
1.5%
Missouri
0.9%
1.5%
New York
0.9%
1.5%
North Carolina
0.9%
1.5%
Ohio
0.9%
1.5%
Rhode Island
0.9%
1.5%
Virgin Islands
1.2%
1.8%
Wisconsin
0.9%
1.5%
Details
The Social Security Act requires a reduction in the FUTA tax credit
when a state has outstanding federal loans for on January 1 of two
consecutive years. The reduction in the FUTA tax credit is 0.3% for the
firstyear and an additional 0.3% (or more) for each succeeding year
until the loan is repaid.
Employers in Indiana will see a 1.2% FUTA credit reduction for
2013because this is the fourth penalty year. Indiana employers
potentially faced an even higher FUTA cost this year because the
state has carried its federal loans for five years however, the state
requested, and received, a waiver of the additional benefit cost
reduction (BCR) factor.
Virgin Islands employers again face the special 2.7 add-on FUTA
penalty that applied in 2012 because of having an average state UI
rate that is lower than allowed under federal law. However, the penalty
is lower for 2013, and the net FUTA rate that Virgin Islands employers
will pay at is 0.3% less than 2012.
Georgia requested that its FUTA credit reduction be capped for 2013
at the 2012 level; however, according to a U.S. Department of Labor
official, the state did not qualify for the cap. As a result, Georgia joins
the other states than began borrowing in 2009 in having a net FUTA
rate of 1.5%.
For the third year in a row, South Carolina requested, and received,
avoidance of the FUTA credit reduction for 2013. South Carolina
(and Indiana) employers potentially faced the addition of the BCR
factor because the state has carried its federal loans for five years
however, the state requested, and received, a waiver of the additional
penalty. As a result, although the state still has an outstanding loan
balance, South Carolina employers will pay at the minimum net FUTA
rate of 0.6% for 2013.
Legislation enacted earlier this year (HB 168) allows the Delaware
Department of Labor the option to repay its loan by borrowing
funds from the states general fund or other state fund; however, the
Department did not do so by the November 10, 2013, deadline. As
a result, Delaware employers will pay their 2013 FUTA taxes at a net
rate of 1.2%.
Arizona, Florida, Nevada, New Jersey and Vermont all repaid
their federal loans during 2013, reducing the net FUTA rate to the
minimum 0.6%. Several did so through the issuance of bonds, which
may result in state assessments to employers to repay the bonds
rather than increased FUTA taxes.
8,000*
37,400
2013
36,900
7,000*
7,000*
12,000*
12,000*
7,000*
% increase/
decrease
1.36%
11,300
Connecticut
15,000*
15,000*
Delaware8
18,500
10,500*
District of Columbia
9,000*
9,000*
Florida
8,000*
8,000*
Georgia
9,500*
9,500*
3.54%
76.20%
Hawaii
40,400
39,600
2.02%
Idaho
35,200
34,800
1.15%
Illinois
12,960
12,900
0.47%
Kansas7
9,500*
26,800
8,000*
9,500*
26,000
9,600
9,300
Louisiana
7,700
7,700
12,000*
12,000*
8,500*
8,500*
14,000*
14,000*
Maryland
Massachusetts
Michigan
9,500*
29,000
29,000
Mississippi
14,000*
14,000*
Missouri
13,000*
13,000*
Montana
29,000
27,900
9,000*
3.94%
9,000*
Nevada
27,400
26,900
New Hampshire
14,000*
14,000*
New Jersey
31,500
30,900
3.23%
9,500*
Minnesota
Nebraska
3.08%
8,000*
Kentucky1
Maine
0.62%
7,000*
11,700
Indiana
2014 employee
contributionrates
8,000*
Colorado
Iowa
2014
1.86%
1.94%
State
2014
2013
% increase/
decrease
New Mexico
23,400
22,900
2.18%
New York
10,300
8,500
21.18%
North Carolina
21,400
20,900
2.39%
North Dakota
33,600
31,800
5.66%
Ohio
9,000*
18,700
20,100
(7.49%)
Oregon
35,000
34,100
2.64%
Pennsylvania
8,7504
8,5004
2.94%
Rhode Island
South
Carolina2
South Dakota3
Tennessee
Texas
7,000*
7,000*
20,6006
20,2006
12,000
12,000
14,000
13,000
9,000*
9,000*
7.69%
9,000*
9,000*
Utah
30,800
30,300
Vermont
16,000*
16,000*
8,000*
8,000*
Virginia
1.98%
1.65%
Virgin Islands
22,500
23,600
(4.88%)
Washington
41,300
39,800
3.77%
West Virginia
12,000*
12,000*
Wisconsin
14,000
14,000
Wyoming
24,500
23,800
FUTA
7,000*
2.94%
7,000*
* Law sets the taxable wage base; legislation would be necessary to change.
Footnotes:
1
Kentucky. The taxable wage base will
continue to increase by $300 each calendar
year until the taxable wage base reaches
$12,000 in 2022.
2
South Carolina. The taxable wage base will
increase to $14,000 for 2015.
3
South Dakota. The taxable wage base will
increase by $1,000 per year through 2015:
2010 = $10,000; 2011=$11,000; 2012
= $12,000; 2013 = $13,000; 2014 =
$14,000; 2015 = $15,000.
9,000*
Oklahoma
Puerto Rico
2014 employee
contributionrates
4
Pennsylvania. The taxable wage base will
increase to $9,000 for calendar year 2015,
$9,500 for calendar year 2016, $9,750
for calendar year 2017, and $10,000 for
calendar year 2018 and after.
5
New Jersey. Employee rate includes the
Workforce Development/Supplemental
Workforce Funds surcharge.
6
Rhode Island. Employers assigned
the maximum tax rate of 9.79% pay
unemployment taxes up to a taxable wage
base of $22,100 for 2014.
7
Kansas. The taxable wage base will increase
to $12,000 in 2015 and to $14,000 in
2016.
8
Delaware. Legislation enacted in mid-August
2013 changesthe determination of the SUI
taxable wage base from a set amount of
$10,500 to a range of $10,500 to $18,500
for calendar year 2014 and beyond by tying
the wage limit to the balance of the states
unemployment trust fund the higher the
trust fund balance, the lower the taxable
wage base.
The Social Security and Medicare tax rates for both the employer and
the employee remain unchanged, at 6.2% and 1.45%, respectively.
For our guide to the 2014 federal and state rates and limits, go to our
year-end resource hub here.
Payroll period
Add additional
Daily or miscellaneous
$8.70
Weekly
$43.30
Biweekly
$86.50
Semimonthly
$93.80
Monthly
$187.50
Quarterly
$562.50
Semiannually
$1,125.00
Annually
$2,250.00
Withholding allowances
Payroll period
Daily or miscellaneous
Weekly
Biweekly
$151.90
Semimonthly
$164.60
Monthly
$329.20
Quarterly
$987.50
Semiannually
$1,975.00
Annually
$3,950.00
$-0-
Over
Of excess over
$2,250
$11,325
$0.00 + 10.0%
$2,250
$11,325
$39,150
$907.50 + 15.0%
$11,325
$39,150
$91,600
$5,081.25 + 25.0%
$39,150
$91,600
$188,600
$18,193.75 + 28.0%
$91,600
$188,600
$407,350
$45,353.75 + 33.0%
$188,600
$407,350
$409,000
$117,541.25 + 35.0%
$407,350
$409,000
And over
$118,118.75 + 39.6%
$409,000
$-0-
Over
$26,600
$26,600
$82,250
Of excess over
$0.00 + 10.0%
$8,450
$1,815.00 + 15.0%
$26,600
$82,250
$157,300
$10,162.50 + 25.0%
$82,250
$157,300
$235,300
$28,925.00 + 28.0%
$157,300
$235,300
$413,550
$50,765.00 + 33.0%
$235,300
$413,550
$466,050
$109,587.50 + 35.0%
$413,550
$466,050
And over
$127,962.50 + 39.6%
$466,050
Supplemental withholding
taxrate for 2014
Alabama
5.00%
Arkansas
7.00%
6.60%
California
Supplemental wages
Bonus and stock options
10.23%
Colorado
Georgia
4.63%
2.00%
$8,000$10,000
3.00%
$10,000$12,000
4.00%
$12,000$15,000
5.00%
Over $15,000
6.00%
Idaho
7.40%
Illinois
5.00%
Indiana
3.40%
Iowa
6.00%
Kansas
4.50%
Maine
5.00%
Maryland (1)
Massachusetts
5.20%
Michigan
4.25%
Minnesota
6.25%
Missouri
6.00%
Montana
6.00%
Nebraska
5.00%
New Mexico
4.90%
9.62%
North Carolina
5.80%
North Dakota
2.28%
Ohio
3.50%
Supplemental withholding
taxrate for 2014
Oklahoma
5.25%
Oregon
9.00%
Pennsylvania
3.07%
Rhode Island
5.99%
7.00%
South Carolina
Vermont (3)
Virginia
5.75%
West Virginia
3.00%
$10,000$24,999
4.00%
$25,000$39,999
4.50%
$40,000$60,000
6.00%
Over $60,000
Wisconsin
6.50%
+1 608 266 2776
4.60%
$10,220$20,439
6.15%
$20,440$153,279
6.50%
$153,280$224,999
6.75%
7.75%
* There is no supplemental rate of withholding for Arizona, Connecticut, Delaware, District of Columbia, Hawaii, Kentucky,
Louisiana, Mississippi, New Jersey, Puerto Rico or Utah.
Footnotes
(1) Maryland: For lump-sum distributions, withhold at 7.0% for nonresidents, 3.20% for residents
employed in Delaware, and 5.75% plus local rate for residents working in Maryland.
(2) New York: For state withholding tax purposes, the supplemental withholding rate is 9.62%. For
NewYork City residents, the supplemental withholding rate is 4.25%. For City of Yonkers, the
resident supplemental withholding rate is 1.443%, and for nonresidents, 0.50%.
(3) Vermont: According to the Department of Taxes 2013 income tax withholding booklet
and Publication TB 23 (revised January 2013), the supplemental withholding rate was
27% of the federal withholding amount for supplemental and nonperiodic payments.
Website
California
http://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm
Connecticut
http://www.ct.gov/drs/lib/drs/forms/2014withholding/2014_withholding_tables.pdf
Delaware
http://revenue.delaware.gov/services/wit_folder/section17.shtml
District of Columbia
http://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/46912_FR-230-122013.pdf
Indiana
http://www.in.gov/dor/files/dn01.pdf
Kansas
http://www.ksrevenue.org/pdf/kw1002014.pdf
Kentucky
http://revenue.ky.gov/NR/rdonlyres/6278107A-D950-4C09-B4ED-B156C922BA8E/0/7_201442A003T.pdf
Maine
http://www.maine.gov/revenue/forms/with/2014/14_whtables.pdf
Maryland
http://taxes.marylandtaxes.com/Business_Taxes/Business_Tax_Types/Income_Tax/Employer_Withholding/Withholding_
Tables/Percentage_Method.shtml
Massachusetts
http://www.mass.gov/dor/docs/dor/forms/wage-rpt/pdfs/circ-m14.pdf
Michigan
http://www.michigan.gov/documents/taxes/78_442440_7.pdf
http://www.michigan.gov/documents/taxes/446_2013_442640_7.pdf
Minnesota
http://www.revenue.state.mn.us/Forms_and_Instructions/2012/wh_inst_14.pdf
Missouri
http://dor.mo.gov/pdf/formula.pdf
New Mexico
http://www.tax.newmexico.gov/SiteCollectionDocuments/Publications/FYI-Publications/FYI-104__NEW%20MEXICO%20
WITHHOLDING%20TAX_12-3-13.pdf
New York
(state and City of Yonkers)
http://www.tax.ny.gov/pdf/publications/withholding/nys50_t_nys.pdf
North Carolina
http://www.dornc.com/downloads/nc30.pdf
North Dakota
http://www.nd.gov/tax/indwithhold/pubs/withholdingbooklet2014.pdf?20140106135101
Ohio
http://www.tax.ohio.gov/portals/0/forms/employer_withholding/2014/WTH_Instructions.pdf
http://www.tax.ohio.gov/portals/0/forms/school_district_income/2014/WTH_EmployerLetter.pdf
Oklahoma
http://www.tax.ok.gov/publicat/2014WHTables.pdf
Oregon
http://www.oregon.gov/dor/BUS/docs/withholding-tax-formulas_206-436_2014.pdf
Puerto Rico
http://www.hacienda.gobierno.pr/downloads/pdf/publicaciones/TABLAS_RETENCION_2014.pdf
Rhode Island
http://www.tax.ri.gov/forms/2014/Withholding/2014%20Withhholding%20Booklet.pdf
Vermont
http://www.state.vt.us/tax/pdf.word.excel/business/2014-Withholding-Instructions-Charts-Tables.pdf
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