2016 PAYROLL & TAX-RELATED REGULATORY CHANGES
Equip your business for the year ahead! The following tax guides were created to keep you informed and confident in your payroll management.
Scroll down for our payroll calendar, state-by-state information, federal wage & tax rates, and more.
Stay updated on the latest payroll and tax regulations with the following:
- State-by-State Quick Wage and Tax Guide for 2016
- Each State's Current Wage and Tax Information
- Social Security Taxable Wage Base and Tax Rates
- Medicare Taxable Wage Base and Tax Rates
- FUTA Taxable Wage Base and Tax Rate
- Federal and State Minimum Wage Rates
- Pension Limits for Contributing to 401(k) Plans and SIMPLE IRAs
All guides were published on January 15, 2016. Please check back for updates.
Get the complete, state-by-state guide for free by clicking here:
FEDERAL WAGE & TAX RATES
Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. This limit is adjusted each year with changes in the national average wage index. This annual limit is called the contribution and benefit base.
For earnings in 2016 (unchanged from 2015), the Social Security taxable wage base is $118,500.
FICA - Social Security (OASDI Only) [top]
|Social Security Taxable Wage Base per Employee||$118,500|
|Employer Tax Rate for Social Security||6.2%|
|Employee Tax Rate for Social Security||6.2%|
|Self-Employed Tax Rate for Social Security||12.4%|
FICA – Medicare (Hospital Insurance Only) [top]
|Medicare Taxable Wage Base per Employee||No Limit|
|Employer and Employee Tax Rate for Medicare||1.45%|
|Self-Employed Tax Rate for Medicare||2.9%|
|FUTA Taxable Wage Base per Employee||$7,000|
|Employer Net Tax Rate||0.6%|
Below are the federal minimum wage rates. Please note that some states have minimum wages that are higher than federal rates. Effective 7/24/2009.
|Minimum Wage||Tipped Employee: Min. Wage||Tip Credit (MAX)|
For information on state minimum wage rates, head to the Department of Labor’s website by clicking here: State minimum wage rates.
The federal government sets dollar limits as to how much an employee can contribute to their company’s qualified retirement plan each tax year. These limits are based on the cost-of-living index. If an employee reaches the age of 50 during the current tax year, they will qualify for the “Catch-Up Provision"… only if it is an established provision of the company’s 401(k) plan.
These limits have remained the same from 2015.
|401(k) Limit for||$18,000||$24,000|
|SIMPLE IRA Plan for||$12,500||$15,500|