Tax & Accounting Blog

Payroll Compliance Information: New Rates in 2017

Accounting Firms, CS Professional Suite Payroll Solutions, Payroll December 1, 2016

2017 brings new state and federal rates, accelerated W-2 filings and ACA reporting requirements.

Due to a low consumer price increase this year, many rates stay the same with a glaring exception—the 2017 Federal Insurance Contributions Act (FICA) wage base. And remember, January 2017 brings Affordable Care Act reporting for applicable large employers (ALEs)—all ALEs will have to provide every employee with a Form 1095-C by March 2, 2017. (One-month extension given.)

Additionally, here’s a rundown of the changes in the most commonly used rates and limits. We highly recommend exploring the payroll guidance solutions provided by Checkpoint, as rates constantly change.

ELECTRONIC STATE W-2 DUE DATES

STATE DUE DATES
AK None
AL Jan. 31 (accelerated)
AR Feb. 28
AZ Feb. 28
CA N/A
CO Mar. 31
CT Jan. 31 (accelerated)
DC Jan. 31 (accelerated)
DE Mar. 31
FL None
GA Feb. 28
HI Last day of Feb.
IA N/A
ID Feb. 28
IL Feb. 15 (accelerated)
IN Jan. 31 (accelerated)
KS Last day of Feb.
KY Jan. 31 (accelerated)
LA First business day after Feb. 27
MA Mar. 31
ME Mar. 31
MD Feb. 28
MI Feb. 28
MN Feb. 28
MO Last day of Feb.
MS Feb. 28
MT Feb. 28
NC Jan. 31 (accelerated)
ND Mar. 31
NE Feb. 1 (accelerated)
NH None
NJ Last day of Feb
NM Last day of Feb
NV None
NY N/A
OH Feb. 28
OK N/A
OR Mar. 31
PA Jan. 31 (accelerated)
PR Jan. 31 (accelerated)
RI Last day of Feb.
SC Last day of Feb.
SD None
TN None
TX None
UT Jan. 31 (accelerated)
VA Jan. 31 (accelerated)
VT Mar. 1
WA None
WI Jan. 31 (accelerated)
WV Feb. 28
WY None

 

2017 Rates

ITEM 2016 2017
Social Security $118,500 $127,200
 – FICA (6.2%) $7,347.00 $7,886.40
 – Medicare (1.45%) $200,000 $200,000
 – Medicare (2.35%)  > $200,000  > $200,000
 
Domestic Worker Threshold $2,000 $2,000
Elections Workers $1,700 $1,800
Transit Passes / Van Pool / Bike $255 / $255 / $20 $255 / $255 / $20
Parking $255 $255
415(b)(1)(A) Defined Benefit Max $210,000 $215,000
Max Contribution $53,000 $54,000
Roth Limits (married; single) $184,000-$194,000; $117,000-$132,000 $186,000-$196,000; $118,000-$133,000
 – 401(k) $18,000 $18,000
 – 403(b) $18,000 $18,000
 – 408(p) Simple $12,500 $12,500
401(k) Catch-Up $6,000 $6,000
414(v) Catch-Up Simple $3,000 $3,000
IRA $5,500-6,500<50 $5,500-6,500<50
Foreign Income Exclusion $101,300 $102,100
Minimum Annual Comp 408 $600 $600
Adoption Exclusion Limits $13,460 $13,570
 – Phase Out Adjusted Gross Income (AGI) $201,920 $203,540
 – Total Exclusion AGI $241,920 $243,540
Definition of Control Employee / Commuting $215,000 / $105,000 $215,000 / $105,000
 – Corp Officer $105,000 $105,000
 – Earnings Test $210,000 $215,000
Definition of Highly Comp. $120,000 $120,000
 – Key Employee Top Heavy Plan $170,000 $175,000
 – Flexible Spending Account (FSA) $2,550 $2,600
Long-Term Premiums
 – <40 $390 $410
 – 40-50 $730 $770
 – 50-60 $1,460 $1,530
 – 60-70 $3,900 $4,090
 – >70 $48,700 $5,110
Limitations
 – Highly Compensated 414 $120,000 $120,000
 – Annual Compensation Limits
 – 414, 404, 408 Self-Employee Pension (SEP) $265,000 $270,000
 – Annual Compensation Limits
 – 401 Government plans in effect 7/1/93 $395,000 $400,000
Health Savings Account (HSA)
 – Annual Deduction Limit Single/Family $1,300 / $2,600 $1,300 / $2,600
 – Maximum Out of Pocket Single/Family $6,550 / $13,100 $6,550 / $13,100
 – Maximum Annual Contribution Single/Family $3,350 / $6,750 $3,400 / $6,750
 – Maximum Annual Catch-Up (55 years old) $1,000 $1,000

 

States with Mandated Disability

STATE 2017 BASE RATE
CA $106,742 0.9% incl. Personal Family Leave
CA Family Paid Leave
HI $960.68 (weekly) 0.5% max; $4.70 wk
NJ $32,600; Family leave – $36,000 0.2% disability; 0.08%
NY $120 (weekly) 0.5% max; $0.60 wk
PR $9,000 0.30%
RI $66,300 1.2% benefits $817-$1102
WA Postponed indefinitely

All numbers are current as of November 9, 2016, and subject to changes and additions.