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HomeArchived E-NewslettersPayce Setter Newsletter – November 2014


Payce Setter Newsletter – November 2014

August 24, 2017

Payroll Help Desk

As we celebrate the upcoming Thanksgiving holiday, we reflect back over this year and want to extend Thanks to all of our clients, friends and partners! Caring and sharing is one of our priorities in providing top notch service. Payce has been able to give back this year to many businesses and charitable organizations. Our employees have joined in for our year end giving campaign as well, and will receive certificates reflecting their donated amount along with our Employer Match Campaign.

“Perhaps your business will consider a charitable organization that your employees will embrace?” Payce can help set up the monthly or per pay amounts to make this an easy effort in giving back.

Have a wonderful Thanksgiving holiday, from your friends at Payce!

Tax News and Notes

The IRS just released the 2015 Form W-4, Employee’s Withholding Allowance Certificate Employees who have claimed “Exempt” from taxes on form W-4, must complete a new Form W-4 in 2015 so employers can withhold the correct federal income tax from compensation. The new regulation stipulates that individuals cannot claim exemption from withholding in 2015 if their income exceeds $1,050 and includes more than $350 in unearned income. All new hires must also complete this form at their start of employment.

Did you know?

The IRS has announced some cost of living adjustments for year 2015 on the following items:

  • Flexible Spending Accounts – voluntary salary deductions are now available up to $2,550 annually.
  • Adoption Assistance – For 2015, the maximum amount that can be excluded from an employee’s gross income for qualified adoption expenses under an employer’s adoption assistance program is $13, 400 ($13,190 in 2014). The maximum amount that can be excluded in connectionw with the adoption of a child with special needs is $13,400 ($13,190 in 2014).
  • Standard Deducation – 2015 increase to $12,600 for married couples filing jointly or surviving spouses (up from $12,400 in 2014), $9,250 for heads of household (up from $9,100 in 2014), and $6,300 for single taxpayers and married taxpayers filing separately (up from $6,200 in 2014).
  • Personal Exemption – The personal exemption amount for 2015 is $4,000 ($3,950 in 2014).
  • Social Security wage base – the 2015 social security wage base will be $118,500, an increase of $1,500 from the 2014 wage base of $117,000. The FICA tax rate, which is combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, will be 7.65% for 2015 up to the social security wage base. The maximum social security tax employees and employers will each pay in 2015 is $7,347. This will be an increase of $93 for employees and employers.
  • 401k, 403b and most 457 plans – increased from %17,500 to $18,000. The catch up contribution limit for employees aged 50 and over, are increased from $5,500 to $6,000.
  • IRA contributions remains unchanged at $5,500. The catch up also remains at $1,000.

Seasonal Items

It’s almost W-2 time! While we are working hard preparing your W2 statements for January there has been a push to accelerate the W2 filing deadline in an effort to minimize fraud. Similar proposals were also in President Obama’s proposed fiscal year 2015 budget. Fraud is a major concern for many! The US Government Accountability office conducted a report in September addressing theft refund fraud. The report suggested that the IRS should investigate the possibility of accelerating filing dates to reduce this type fo fraud. To date, there has been no announcement of the new deadline for filing W2’s or 1099-MISC forms.

In association with tax refund and combating fraud through identity theft, the IRS has new procedures effective January 2015 to limit the number of refunds electronically deposited into a single financial account or prepaid debit card to three. Any subsequent refunds automatically convert to a paper refund check and will be mailed to the taxpayer. This limit is imposed to prevent criminals from easily obtaining multiple refunds. Most will not be affected by this new procedure and are encouraged to continue using direct deposit for prompt and safe refunds.

The IRS has seen an increase in business identity theft. Unfortunately, stolen business entity is used to file fraudulent individual tax returns and obtain the tax refunds of their victims. As a result the IRS is keeping track of business accounts that have been victims of stolen identity.

Dates to Remember

Thursday, November 27th, 2014 – Payce and Banks are closed

Thursday, December 25th, 2014 – Payce and Banks are closed

Thursday, January 1st, 2015 – Payce and Banks are closed