Payroll Taxes: Rates and Changes

Following is a list of scheduled payroll tax rates and changes effective 2017. As additional payroll tax rates and changes are released, we will update this information.

It is important to be familiar with changes in payroll taxes each year to accurately process payroll.

FUTA Credit Reductions

  • California – 1.8% FUTA credit reduction.
  • U.S. Virgin Islands – 1.8% FUTA credit reduction.
See More FUTA Updates

FICA Rate and Wage Bases

  • The Social Security wage base for 2017 is $127,200.
  • The FICA contribution rate is 6.2%.
  • For the Medicare (HI) portion of the FICA taxes, there is no wage base and all wages earned are subject to the HI tax, which is also paid by employers and employees. Each pays at a 1.45 percent rate, although employees pay an additional 0.9 percent on wages greater than $200,000 for individuals ($250,000 for married couples filing jointly).
  • There is a 0.3 percent cost-of-living increase for 2017, affecting several thresholds for benefits and coverage.

SUTA Wage Bases

  • Colorado: $12,200 to $12,500
  • Montana: $30,500 to $31,400
  • Oklahoma: $17,500 to $17,700
  • Vermont: $16,800 to $17,300
See More SUTA Updates

The information on this page is subject to change at any time based on tax regulation updates. To stay current on payroll processing issues and payroll tax news, subscribe to the APS Blog.

How APS Can Help

APS was one of the first payroll providers approved to file 94x returns on the new modernized e-file program with the IRS. This means that the APS unified cloud solution can provide correct data in the proper format for processing by IRS systems. APS guarantees tax payments and filings to be accurate and on time and takes the burden off your company for payroll tax liabilities and compliance*.

Sources

IRS Announces 2017 Pension Plan Limitations; 401(k) Contribution Limit Remains Unchanged at $18,000 for 2017
In 2017, Some Tax Benefits Increase Slightly Due to Inflation Adjustments, Others Are Unchanged
Department of Labor UI Statistics Page
DOL Comparison of State Unemployment Laws

*APS guarantees tax payments and filings to be accurate and on time, as long as the data provided to APS is accurate and timely and the customer’s account is sufficiently funded to cover all payroll tax liabilities. If a tax penalty is the result of our error, we’ll maintain the abatement process and absorb any fines or interest due.

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