Federal Tax: The IRS released revised Federal withholding tables for 2014. Please refer to the site provided for further information. (http://www.irs.gov/pub/irs-pdf/n1036.pdf)
Social Security Wage Base: The 2014 social security wage base will be $117,000, an increase of $3,300 from the 2013 wage base of $113,700.
Social Security Tax Rate: The tax rate is 6.2% on wages up to the taxable wage limit of $117,000. The maximum Social Security tax that an employee would pay will be $7,254.
Medicare Tax Rate: Increases from 1.45% to 2.35% on wages earned over $200,000. The employer is required to withhold an additional Medicare tax at the point in the pay period when an employee’s annual wages exceed $200,000.
Each employee is required to submit a completed W-4 form to payroll when they are hired. The W-4 form remains in effect unless you submit a new form to the payroll office. We ask that every employee take a moment each year to review your current exemptions to determine if they are still accurate. To review your current W-4 exemptions; log into the portal and click on “Tax Forms” and then “W-4 Withholding Allowances”.
Claiming Exemption from Federal Withholding?
If you have claimed an exemption from income tax withholding on the W-4 form, the IRS requires employees to renew that status at the beginning of each year by completing a new W-4.
Need Assistance completing the W-4 form?
The IRS provides a Withholding Calculator to help ensure that you pay the correct amount of Federal Income Tax. The calculator will help to make sure that you do not have too much or too little income tax withheld from your pay. Click the link to the IRS website http://www.irs.gov/Individuals/IRS-Withholding-Calculator