Brace for higher Social Security taxes — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
The Social Security Administration has announced an increase in the Social Security tax wage base for next year (SSA Fact Sheet 10/20/06). For 2007, the 6.20 percent Social Security tax (12.4 percent for selfemployeds) will apply to the first $97,500 of wages (up from $94,200 in 2006). The 1.45 percent Medicare portion of the tax (2.9 percent for self-employeds) will continue to apply to all wages.
If you handle payroll compliance, beware: As other tax revenue sources dry up, the IRS is hiring 700 new revenue agents whose only job will be to hunt down payroll-law violations. That means intense new scrutiny of your W-2s, 1099s, 1095s and other payroll tax reporting compliance....Click here to find out more.