2014 Disability Changes:
New Jersey employee disability rate change to .38%
The Department of Revenue released transportation tax rates for 2014. Effective Jan. 1, 2014, the Tri-Met tax rate is 0.7237 percent and the Lane County Mass Transit District tax rate is 0.70 percent.
2014 State Withholding Changes:
Maine, Minnesota, Connecticut, Kansas and North Carolina payroll withholding tables are changed for 2014.
FUTA Credit Reductions for 2013 Are Issued (11/12/13)
Thirteen states and the U.S. Virgin Islands have Federal Unemployment Tax Act credit reductions for 2013, the Labor Department said Nov. 12. For 2012, 18 states and the U.S. Virgin Islands had FUTA credit reductions.
Delaware has a 0.6 percent credit reduction that requires employers to pay up to $42 in additional FUTA costs for each employee for 2013.
A credit reduction of 0.9 percent, increasing FUTA costs by up to $63 for each employee for 2013, applies for employers in Arkansas, California, Connecticut, Georgia, Kentucky, Missouri, New York, North Carolina, Ohio, Rhode Island and Wisconsin.
Indiana has a credit reduction of 1.2 percent for 2013 that increases FUTA costs by up to $84 for each employee. However, the state prevented an extra credit reduction, the FUTA benefit cost rate add-on, that would have required employers to pay up to $98 for each employee in addition to the extra charge of up to $84 for each employee. Indiana prevented the benefit cost rate add-on with a fifth-year waiver application that was approved by the Labor Department.
The U.S. Virgin Islands has a credit reduction of 0.9 percent for 2013 plus an extra credit reduction of 0.3 percent. This extra reduction, the 2.7 add-on, can apply for jurisdictions that do not achieve solvency goals established by the Labor Department.
Five states that had credit reductions in 2012 repaid their federal unemployment loan balances and do not have credit reductions for 2013: Arizona, Florida, Nevada, New Jersey and Vermont.
South Carolina, despite its federal unemployment loan balance, does not have a credit reduction for 2013 because its credit reduction avoidance application was approved by the Labor Department.
2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations Resume
The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.
The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.
Ohio: The state minimum hourly wage is to increase to $7.95 from $7.85 and to $3.98 from $3.93 for tipped employees, effective Jan. 1, 2014, the state Department of Commerce said Oct. 10. The increased minimum wage would apply to employers with gross receipts of more than $292,000 a year.
New Jersey: is NOT a FUTA credit reduction state for 2013.
Missouri: will be a FUTA credit reduction state for 2013. The .9 per cent will increase employer costs by $63.00 per employee.
California: withholding tables will change for 2014.
Maryland: local income taxes for Caroline County, Carroll County and Charles County will change in 2014.
Kentucky: standard deduction will increase from $2360.00 to $2400.00 for 2014.
Arizona: Minimum wage will increase from $7.80 to $7.90 in 2014.
Florida: Minimum wage will increase from $7.79 to $7.93 and for tipped employees from $4.77 to $4.91.
The Old-Age, Survivors, and Disability Insurance
(OASDI) taxable wage base for 2014 increases to $117,000 from $113,700 in 2013, the Social Security Administration said Oct. 30.
The maximum 2014 OASDI portion of the Federal Insurance Contributions Act tax payable by each employee is $7,254, or 6.2 percent of the wage base. Employers match the employee amount with an equal contribution.
Of the estimated 165 million workers who are to pay Social Security taxes in 2014, about 10 million would pay higher taxes because of the higher taxable wage base, SSA said.
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 also is 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.
The agency also said a 1.5 percent cost-of-living increase amount is to take effect, affecting several thresholds for benefits and coverage. The Social Security tax annual coverage threshold amount for domestic employees for 2014 increases to $1,900 and remains at $1,600 for election workers.