Vision Payroll

April 19, 2014

Important Notice for All Massachusetts Employers Regarding Unemployment Tax Rates

 

Release of Massachusetts Unemployment Rates Is Delayed

Release of Massachusetts Unemployment Rates Is Delayed

Due to late action by the Massachusetts legislature and the governor, unemployment rates will NOT be available by the legally mandated deadline of April 20, 2014.

At Vision Payroll, we will be submitting wage information by the filing deadline of April 30, 2014. Employer rates will not be available until May 19, 2014. Unemployment contributions must be paid by May 30, 2014.

Although the rate schedule used to determine the rates remains unchanged from 2013, most employers will have a different rate for 2014. That is because in addition to the rate tables, employer rates are determined by wages paid, unemployment benefits charged directly to your account, and the solvency assessment that the state charges employers to pay for benefits paid to the employees of other employers.

If your rate increases from 2013 to 2014, we will need to withdraw additional money beginning May 19, 2014 to pay the additional tax by the deadline. We will contact all employers with the additional amount due. Additionally, we will begin to collect with the new rate (higher or lower) with each payroll as soon as possible after rates are released. Further, with the last payroll of the second quarter, we will make the final adjustment for second quarter taxes.

Since we cannot finalize your first quarter quarterlies until the new unemployment rates are released, we are not going to post online or mail out quarterly packages for affected employers. If you need certain forms, e.g., for a workers comp audit, please contact our offices and we can make them available. Otherwise, we will be sending first quarter packages to affected employers in late May and early June.

Please contact Vision Payroll if you have any questions.

October 30, 2013

Tip of the Week: Social Security Administration Announces 2014 Increases

Filed under: News — Tags: , , , , , — Vision @ 12:09 pm
Acting Commissioner of Social Security Carolyn W. Colvin
Acting Commissioner of Social Security Carolyn W. Colvin
The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $113,700 in 2013 to $117,000 in 2014.

Social Security Increases Based on CPI Change

Since there was a 1.5% increase in the Consumer Price Index (CPI-W) from the third quarter of 2012 to the third quarter of 2013, the Social Security Administration announced a 1.5% cost-of-living adjustment for 2014. This compares to a 1.7% increase in 2013. The wage base increase is based on an increase in the national average wage index. Wages are taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $7,254.00. About 6% of workers who pay Social Security Tax are expected to reach the maximum in 2014.

Retirement Earnings Test Exempt Amounts Increase for 2014

For workers under full retirement age who are receiving Social Security benefits, $1 in benefits is withheld for every $2 above the Retirement Earnings Test Exempt Amount of $15,120 per year or $1,260 per month in 2013. This will increase to $15,480 per year or $1,290 per month for 2014. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $40,080 per year or $3,340 per month in 2013. This will increase to $41,400 per year or $3,450 per month for 2014. The month an individual reaches full retirement age there is no limit on earnings.

Quarter of Coverage Amounts Increases to $1,160

Also increasing for 2014 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2013, a credit is earned for every $1,160 of earnings, up to a maximum of four credits. That amount will increase to $1,200 for 2014.

Social Security Monthly Benefits to Increase in January 2014

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,533 to $2,642. See the table below for other changes in Social Security benefits for 2014.

2014 Social Security Benefits

20132014
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,533 per month$2,642 per month
SSI Federal Payment Standard:
Individual$710 per month$721 per month
Couple$1,066 per month$1,082 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,730$1,750
Annual Limit$6,960$7,060

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2014 or get further information at Important Facts and Figures.

March 15, 2010

South Dakota Increases Taxable Wage Base Through 2015

Filed under: News — Tags: , , , , , , , — Vision @ 9:24 am

South Dakota Governor Mike Rounds recently signed SB 186, which increases the taxable wage base from $10,000 in 2010, to $11,000 in 2011, $12,000 in 2012, $13,000 in 2013, $14,000 in 2014, and $15,000 in 2015. The surcharge was reduced from 1.5% to 1.0% in 2010 and to 0.75% in 2011. The maximum rate for 2010 was increased, however, from 8.5% to 9.5%. Contact Vision Payroll if you have any questions on the South Dakota unemployment tax law changes.

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