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*** 2016 tax bracket percentages did not change but almost all of the breakpoint & tax amounts DID change slightly from 2015 *** Please report any discrepancies or questions to the MVS Alliance support team ASAP.
Below are the Federal figures needed in the Tax Table Maintenance program (Task 23 in the Payroll module). The ‘codes’ indicate its purpose, for example: USWKLY means Weekly Single rates for Federal Withholding. US- United States; WK – Weekly; SL – Single. Please see the document titled: 2016 FICA & FUTA LIMIT & PERCENTAGE RATES for additional information, especially regarding FICA limits, printing W2 forms and first payroll for a new year.
These rates are based on the http://www.irs.gov/ website “Publication 15 (Circular E), Employer’s Tax Guide for use in 2016”.
Social security and Medicare tax for 2016. The social security tax rate is 6.2% each for the employee and employer, unchanged from 2015. The social security wage base limit is $118,500 which is also unchanged from 2015.
The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2015. There is no wage base limit for Medicare tax.
Social security and Medicare taxes apply to the wages of household workers you pay $2,000 or more in cash or an equivalent form of compensation. Social security and Medicare taxes apply to election workers who are paid $1,700 or more in cash or an equivalent form of compensation.
Withholding allowance. The 2016 amount for one with-holding allowance on an annual basis is $4.050.00 which is an increase of $50 from 2015.
Reminders
Additional Medicare Tax withholding. In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.
For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15. For more information on Additional Medicare Tax, visit IRS.gov and enter “Additional Medicare Tax” in the search box.
2016 FUTA:
For 2016, the FUTA tax rate is unchanged at 6.0%. Please note that if your state & specific situation qualify for the maximum credit of 5.4% then your effective FUTA rate in the Profits Plus payroll system should remain unchanged at 0.60% as well. The tax applies to the first $7,000 you pay to each employee as wages during the year. The $7,000 is the federal wage base. Your state wage base may be different.
To verify you may contact the IRS, Telephone assistance for Businesses: Toll-Free, 1-800-829-4933
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To update the Federal tax tables go to Payroll (Module 1)
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Tax table Maintenance (Task 23)
- Change existing tax record (Sub-task 2)
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Tax table Maintenance (Task 23)
USWKSL Exempt $ 77.90
WEEKLY, SINGLE BREAK TAX RATE
Field 9 8025.00 2317.93 39.6
Field 10 7992.00 2306.38 35
Field 11 3700.00 890.02 33
Field 12 1796.00 356.90 28
Field 13 767.00 99.65 25
Field 14 222.00 17.90 15
Field 15 43.00 00.00 10
Fields 16 – 20, all zeroes
USWKMR Exempt $ 77.90
WEEKLY, MARRIED BREAK TAX RATE
Field 9 9144.00 2511.06 39.6
Field 10 8113.00 2150.21 35
Field 11 4615.00 995.87 33
Field 12 3086.00 567.75 28
Field 13 1613.00 199.50 25
Field 14 521.00 35.70 15
Field 15 164.00 00.00 10
Fields 16 –20, all zeroes
USBISL Exempt $ 155.80
BIWEEKLY, SINGLE BREAK TAX RATE
Field 9 16050.00 4635.69 39.6
Field 10 15985.00 4612.94 35
Field 11 7400.00 1779.89 33
Field 12 3592.00 713.65 28
Field 13 1535.00 199.40 25
Field 14 443.00 35.60 15
Field 15 87.00 00.00 10
Fields 16 – 20, all zeroes
USBIMR Exempt $ 155.80
BIWEEKLY, MARRIED BREAK TAX RATE
Field 9 18288.00 5022.08 39.6
Field 10 16227.00 4300.73 35
Field 11 9231.00 1992.05 33
Field 12 6171.00 1135.25 28
Field 13 3225.00 398.75 25
Field 14 1042.00 71.30 15
Field 15 329.00 00.00 10
Field 16 – 20, all zeroes
USSMSL Exempt $ 168.80
SEMIMONTHLY, SINGLE BREAK TAX RATE
Field 9 17388.00 5022.15 39.6
Field 10 17317.00 4997.30 35
Field 11 8017.00 1928.30 33
Field 12 3892.00 773.30 28
Field 13 1663.00 216.05 25
Field 14 480.00 38.60 15
Field 15 94.00 00.00 10
Fields 16 – 20, all zeroes
USSMMR Exempt $ 168.80
SEMIMONTHLY, MARRIED BREAK TAX RATE
Field 9 19813.00 5440.97 39.6
Field 10 17579.00 4659.07 35
Field 11 10000.00 2158.00 33
Field 12 6685.00 1229.80 28
Field 13 3494.00 432.05 25
Field 14 1129.00 77.30 15
Field 15 356.00 00.00 10
Fields 16 –20, all zeroes
USMOSL Exempt $ 337.50
MONTHLY, SINGLE BREAK TAX RATE
Field 9 34775.00 10044.15 39.6
Field 10 34633.00 9994.45 35
Field 11 16033.00 3856.45 33
Field 12 7783.00 1546.45 28
Field 13 3325.00 431.95 25
Field 14 960.00 77.20 15
Field 15 188.00 00.00 10
Fields 16 – 20, all zeroes
USMOMR Exempt $ 337.50
MONTLY, MARRIED BREAK TAX RATE
Field 9 39625.00 10881.46 39.6
Field 10 35158.00 9318.01 35
Field 11 20000.00 4315.87 33
Field 12 13371.00 2459.75 28
Field 13 6988.00 864.00 25
Field 14 2258.00 154.50 15
Field 15 713.00 00.00 10
Fields 16 – 20, all zeroes