Who Form 944 Pr Payroll 2024-2025

Hi, I'm Brian O'Laughlin for Pennies Now. Good news, Payroll Pros! The IRS has released a 2015 version of one of payroll's favorite forms. Okay, well maybe some of you don't have a favorite form, but this is what all payroll departments are familiar with. In mid-February, the IRS released Form 941, the Employer's Quarterly Federal Tax Return, together with the 2015 instructions for Form 941. The form remains relatively unchanged, while the instructions have been updated with tips for navigating IRS.gov. Now, for a few friendly reminders. The Social Security tax rates for the employee and the employer remain unchanged from 2014. Those contribution rates stay at 6.2 percent each. However, the Social Security wage base limit has increased to $118,500 for 2015. The Medicare tax rate also remains unchanged from 2014 and stays at 1.45 percent each for the employee and the employer. And remember, there's no wage base limit for the Medicare tax. Additionally, Social Security and Medicare taxes apply to the wages of household workers who are paid $1,900 or more in 2015, and election workers who are paid $1,600 or more in 2015. Those amounts remain unchanged from 2014. Employers must also withhold 0.9 percent additional Medicare tax from wages paid to an employee in excess of $200,000 in a calendar year. In 2015, this additional Medicare tax is only imposed on the employee. Remember, there is no employer contribution. An employer must begin withholding additional Medicare tax in the pay period it pays wages in excess of $200,000 to that employee and continues to withhold each pay period until the end of the calendar year. It's important to remember that all wages that are subject to the Medicare tax are subject to the additional Medicare tax withholding for wages paid in excess of the $200,000 threshold. For more...