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October 22, 2014

Tip of the Week: Social Security Administration Announces 2015 Increases

Filed under: News — Tags: , , , , , — Vision @ 5:29 pm

The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $117,000 in 2014 to $118,500 in 2015.

Social Security Increases Based on CPI Change

Since there was a 1.7% increase in the Consumer Price Index (CPI-W) from the third quarter of 2013 to the third quarter of 2014, the Social Security Administration announced a 1.7% cost-of-living adjustment for 2014. This compares to a 1.5% increase in 2014. 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 $7,347.00. About 6% of workers who pay Social Security Tax are expected to reach the maximum in 2015.

Retirement Earnings Test Exempt Amounts Increase for 2015

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 $15,480 per year or $1,290 per month in 2014. This will increase to $15,720 per year or $1,310 per month for 2015. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $41,400 per year or $3,450 per month in 2014. This will increase to $41,880 per year or $3,490 per month for 2015. 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 2015 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2014, a credit is earned for every $1,200 of earnings, up to a maximum of four credits. That amount will increase to $1,220 for 2015.

Social Security Monthly Benefits to Increase in January 2014

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,642 to $2,663. See the table below for other changes in Social Security benefits for 2015.

2015 Social Security Benefits

20142015
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,642 per month$2,663 per month
SSI Federal Payment Standard:
Individual$721 per month$733 per month
Couple$1,082 per month$1,100 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,750$1,780
Annual Limit$7,060$7,180

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2015 or get further information at Important Facts and Figures.

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.

October 16, 2012

Social Security Administration Announces 2013 Increases

Filed under: News — Tags: , , , , — Vision @ 9:59 am
Commissioner of Social Security, Michael J. Astrue
Commissioner of Social Security, Michael J. Astrue
The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $110,100 in 2012 to $113,700 in 2013.

Social Security Increases Based on CPI Change

Since there was a 1.7% increase in the Consumer Price Index (CPI-W) from the third quarter of 2011 to the third quarter of 2012, the Social Security Wage Base will also increase by 1.7%. This compares to a 3.6% increase in 2012. Wages are scheduled to be taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $7,049.40. There is a proposal to keep the current rate of 4.2% for employees, but it has not passed at this time. About 6% of workers who pay Social Security Tax are expected to reach the maximum in 2003.

Retirement Earnings Test Exempt Amounts Increase for 2013

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 $14,640 per year or $1,220 per month in 2012. This will increase to $15,120 per year or $1,260 per month for 2013. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $38,880 per year or $3,240 per month in 2012. This will increase to $40,080 per year or $3,340 per month for 2013. 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 2013 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2012, a credit is earned for every $1,130 of earnings, up to a maximum of four credits. That amount will increase to $1,160 for 2013.

Social Security Monthly Benefits to Increase in January 2013

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,513 to $2,533. See the table below for other changes in Social Security benefits for 2012.

2013 Social Security Benefits

20122013
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,513 per month$2,533 per month
SSI Federal Payment Standard:
Individual$698 per month$710 per month
Couple$1,048 per month$1,066 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,700$1,730
Annual Limit$6,840$6,960

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2013 or get further information at Important Facts and Figures.

June 19, 2012

Washington Unemployment Wage Base to Increase to $39,800

Filed under: News — Tags: , , , , — Vision @ 4:33 pm
WA ESD Commissioner Paul Trause
WA ESD Commissioner Paul Trause
The Washington Employment Security Department has announced an increase in the taxable wage base for 2013. The wage base will increase from $38,200 for 2012 to $39,800 for 2013.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Washington unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

November 22, 2011

California Announces 2012 UI, ETT, and EDI Rates

Filed under: News — Tags: , , , , — Vision @ 6:29 pm
Pam Harris, Chief Deputy Director, California EDD
Pam Harris, Chief Deputy Director, California EDD
The California Employment Development Department (EDD) recently released the 2012 UI, ETT, and SDI rates. An historical compilation of prior year rates is available in Form DE 3395.

2012 UI, ETT, and SDI Rates

The UI rate schedule in effect for 2012 is Schedule “F+.” This is Schedule F plus a 15% emergency surcharge, rounded to the nearest tenth. Schedule “F+” provides for UI contribution rates from 1.5% to 6.2%.

Exception for Employers Subject to §977(c)

Exception: Employers subject to §977(c) of the CUIC must pay at the highest rate provided by law plus an additional 2%.

Taxable Wage Limit Remains at $7,000

The taxable wage limit is $7,000 per employee.

The Voluntary UI program Is Not in Effect for 2012

The Employment Training Tax (ETT) rate for 2012 is 0.1%. The UI and ETT taxable wage limit remains at $7,000 per employee per calendar year.

SDI Rate Is Set at 1.0%

The State Disability Insurance (SDI) withholding rate for 2012 is 1.0%. The taxable wage limit is $95,585 for each employee per calendar year. The maximum to withhold for each employee is $955.85.

Notices Will Be Mailed December 30

UI, ETT, and SDI tax rates are combined on a single rate notice, Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088). The DE 2088 will be mailed in December, with a mailing date of December 30. Employers will have 60 days from the December 30 mailing date to protest any item on the DE 2088 except SDI and ETT, which are specifically set by law.

New Employer Rate Set at 3.4%

For new employers, the UI tax rate is 3.4% for up to three years. Owners that purchased an established business have the option of acquiring the previous owner’s UI tax rate.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the California unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

October 19, 2011

Tip of the Week: Social Security Administration Announces 2012 Increases

Filed under: News — Tags: , , , , , — Vision @ 10:23 am
Commissioner of Social Security, Michael J. Astrue
Commissioner of Social Security, Michael J. Astrue
The Social Security Administration announced today that the Maximum Taxable Earnings or Social Security Wage Base would increase from $106,800 in 2011 to $110,100 in 2012.

Social Security Increases Based on CPI Change

Since there was a 3.6% increase in the Consumer Price Index (CPI-W) from the third quarter of 2010 to the third quarter of 2011, the Social Security Wage Base will also increase by 3.6%. This is the first increase in the Social Security Wage base since 2009. Wages are scheduled to be taxed at 6.2%, so the maximum tax to be paid by each employee at that rate would be $6,826.20. There are proposals to keep the current rate of 4.2% for employees or to reduce it to 3.1%, but none has passed at this time. About 7% of workers who pay Social Security Tax are expected to reach the maximum in 2012.

Retirement Earnings Test Exempt Amounts Increase for 2012

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 $14,160 per year or $1,180 per month in 2011. This will increase to $14,640 per year or $1,220 per month for 2012. The year an individual reaches full retirement age, $1 in benefits is withheld for every $3 above the Retirement Earnings Test Exempt Amount of $37,680 per year or $3,140 per month in 2011. This will increase to $38,880 per year or $3,240 per month for 2012. The month an individual reaches full retirement age there is no limit on earnings.

Quarter of Coverage Amounts Increases to $1,130

Also increasing for 2012 is that amount needed to earn a Social Security credit, formerly known as a quarter of coverage. In 2011, a credit is earned for every $1,120 of earnings, up to a maximum of four credits. That amount will increase to $1,130 for 2012.

Social Security Monthly Benefits to Increase in January 2012

The maximum benefit for a worker retiring at full retirement age is also increasing from $2,366 to $2,513. See the table below for other changes in Social Security benefits for 2012.

2012 Social Security Benefits

20112012
Maximum Benefit:
Worker Retiring at Full Retirement Age$2,366 per month$2,513 per month
SSI Federal Payment Standard:
Individual$674 per month$698 per month
Couple$1,011 per month$1,048 per month
SSI Resources Limit:
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
Monthly Limit$1,640$1,700
Annual Limit$6,600$6,840

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the Social Security changes for 2012 or get further information at Important Facts and Figures.

October 15, 2011

North Dakota Unemployment Wage Base to Increase to $27,900 for 2012

Filed under: News — Tags: , , , , — Vision @ 5:11 pm
Maren Daley, Executive Director, Job Service North Dakota
Maren Daley, Executive Director, Job Service North Dakota
The Job Service North Dakota has announced an increase in the taxable wage base for 2011. The wage base will increase from $25,500 for 2011 to $27,900 for 2012.

Annual Increase Is Mandated by Law

This amount is set annually and is 70% of a statewide average wage.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the North Dakota unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

October 1, 2011

Nevada Unemployment Wage Base to Decrease to $26,400

Cynthia Jones, Administrator for the Employment Security Division
Cynthia Jones, Administrator for the Employment Security Division
The Employment Security Division of the Nevada Department of Employment, Training and Rehabilitation has announced an decrease in the taxable wage base for 2012.

Wage Base Decreases for Second Consecutive Year

The wage base will decrease from $26,600 for 2011 to $26,400 for 2012. This will be the second straight year that Nevada has reduced the taxable wage base.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on Nevada unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

September 27, 2011

Iowa Decreases Unemployment Rates, but Raises Wage Base for 2012

Filed under: News — Tags: , , , , , — Vision @ 8:21 pm
Iowa Workforce Development Director Teresa Wahlert
Iowa Workforce Development Director Teresa Wahlert
Iowa Workforce Development has announced that the 2012 unemployment rates will be based on Table 4; 2011 rates are based on Table 3. As a result, employers will see approximately $96 million in tax savings and the average rate will fall from 2.8% in 2011 to 2.4% in 2012.

Director Teresa Wahlert Comments on the Increase

According to Director Teresa Wahlert, “Most states across the country are experiencing significant increases in their tax rates in order to repay the federal government for loans. Due to successful management of our Unemployment Insurance Trust Fund, Iowa did not borrow from the federal government and is reducing the burden on employers.”

Wage Base Will Increase in 2012

In addition, the taxable wage base for 2012 has been announced. The wage base will increase to $25,300 for 2012, up from $24,700 for 2011. Consequently, some employers will see contributions to the fund increase even with the lower rates based on the higher wage base.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll with any questions on the Iowa unemployment insurance rates or wage base or visit our Unemployment Taxable Wage Base page.

September 25, 2011

Wyoming Unemployment Wage Base to Increase to $23,000

Filed under: News — Tags: , , , — Vision @ 9:29 pm
Wyoming Unemployment Wage Base to Increase to $23,000
Wyoming Unemployment Wage Base to Increase to $23,000
Director Joan K. Evans of the Wyoming Department of Workforce Services has announced a increase in the taxable wage base for 2012.

$700 Increase More Offsets Last Year’s Decrease

The wage base will increase from $22,300 for 2011 to $23,000 for 2012.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on Wyoming unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

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