INDIVIDUAL IS RESPONSIBLE FOR PAYING THE ADDITIONAL 0.9% MEDICARE TAX. Josh and Anna are married. Josh’s salary is $180,000, and Anna’s wages are $150,000. Assume they have no other wage or investment income. Their total combined wage income is $330,000 ($180,000 + $150,000). Since this amount is over the $250,000 threshold, they owe the additional [...]
ADDITIONAL 0.9% MEDICARE TAX Individuals must pay an additional 0.9% Medicare tax on earned income above certain thresholds. The employee portion of the Medicare tax is increased from 1.45% to 2.35% on wages received in a calendar year in excess of $200,000 ($250,000 for married couples filing jointly; $125,000 for married filing separately). Employers must [...]
IRS MODIFIES FSA USE-IT-OR-LOSE-IT RULE Health Flexible Spending Account (FSA) contributions left over at the end of the plan year are forfeited to the employer under the “use-it-or-lose-it rule,” although a plan can provide a grace period extending the period of incurring expenses for qualified benefits to the 15th day of the third month after [...]
2014 SOCIAL SECURITY WAGE BASE The Social Security Administration announced the wage base for computing social security tax for 2014 will increase to $117,000 from the 2013 wage base of $113,700. This means that for 2014, the maximum OASDI portion of the FICA tax an employee will pay is $7,254 ($117,000 x 6.2%), and employers [...]
LIFE INSURANCE AS A SOURCE OF FUNDS FOR THE TERMINALLY ILL An individual who is terminally or chronically ill and lacks funds to cover significant medical (e.g., experimental treatments) and other family expenses may find the solution through his or her life insurance policies. Although insurance policies have historically been held for the death benefits, [...]
Make QuickBooks Yours in 2014: Customize QuickBooks can be used as is (with some exceptions), but you can customize many elements to improve your workflow, your form output and your business insight. While many of the things you purchase and use in your daily work and professional lives don’t come with options, many do. Think [...]