Here’s the latest on what’s changing for 2015:
1. Social Security wage base increase – The 2015 Social Security wage base has increased from $117,000 to $118,500.
2. Additional Medicare Tax – Wages in excess of $200,000 will continue to be subject to an extra 0.9% Medicare tax in 2015.
3. Credit reduction states – If you pay wages in a credit reduction state, they will pay more in federal unemployment tax (FUTA) when you file Form 940 for 2014. The following states are credit reduction states: CA, CT, IN, KY, NC, NY, OH. Visit the IRS website for more information.