2015 FICA & FUTA LIMIT & PERCENTAGE RATES

Before running a payroll for a new calendar year (2015), the MTD, QTD and YTD (from 2014) on the employees’ records must be cleared out.  Running the Clear YTD, QTD, MTD Emp/Recurring­ program does this.  Go to:

• Payroll (Module 1)
  • System Management Functions (Task 32)
    • Clear YTD, QTD, MTD Emp/Recurring (Sub-task 3)

Clearing these fields will not interfere with the running of W-2s for 2014, since the information for the W-2s come from the Payroll History. Note:  If these fields are not cleared, the current year’s wages (2015) that print on the check stub will also include the wages from the prior year (2014).

• Also note that the FICA Maximum for 2015 has changed:
  • 2015 $118,500.00
  • 2014 $117,000.00
  • See below the change needed in field 5.  Unless you have an employee who is going to exceed the $118,500.00 before the 2014 W2’s are printed, then this change can be made after your W2’s are printed.
• The FICA employee tax rate for social security is still 6.2% as it was in 2014.   
• The FICA employer tax rate for social security stayed the same as 2014 at 6.2%.

FICA fields are found in:

• Payroll (Module 1)
  • System Management Functions (Task 32)
    • Update P/R Execution Parameters (Sub-task 4)
      • Field 5: FICA Maximum: 118,500.00
      • Field 6: FICA employee %:  6.20
      • Field 7: FICA employer %:  6.20]

ADDITIONAL NOTE:  Field 5: FICA Maximum needs to be the 2014 amount of $117,000.00 when the 2014 W2’s are printed and when the payroll reports are printed for the 2014 4^th quarter.

Verify the 2015 FUTA % & maximum:

• Payroll (Module 1)
  • System Management Functions (Task 32)
    • Update P/R Execution Parameters (Sub-task 4)
      • Field 20 Fed unemp max: 7000.00
      • Field 21 Fed unemp pct: 0.60

STATE:

• If your state has an unemployment maximum and an unemployment % you may need to update field 22 & 23.  Verify with your state website or your accountant.