The IRS has released the 2017 personal exemption amount, which doubles as the value of one withholding allowance for an annual pay period.
One less programming headache: The personal exemption amount remains $4,050 for 2017, which means that the value of withholding allowances may not increase, either.
The IRS has also released other key 2017 payroll-related figures. (Rev. Proc. 2016-55, IRB 2016-45)
If you handle payroll compliance, beware: The IRS is hunting down payroll-law violations more aggressively this year. That means intense new scrutiny of your W-2s, 1099s, 1095s and other payroll tax reporting compliance. Year-end preparation is the key. Get ready with help from Payroll Compliance: Preparing for Year-End and 2017.
Projected withholding allowance amounts. The IRS publishes the official withholding allowance amounts in Notice 1036, along with the percentage method tables. The estimated value of one allowance per pay period in 2017 is:
- Weekly: $77.90
- Biweekly: $155.80
- Semimonthly: $168.80
- Monthly: $337.50
- Quarterly: $1,012.50
- Semiannual: $2,025.00
- Annual: $4,050.00
- Daily or miscellaneous: $15.60.
Make even one critical error in your W-2 reports and you'll be bumped down into non-filer status and become easy penalty bait for the IRS. Plus, this year-end promises to be the most challenging in a generation—new (and accelerated) filing due dates, new rules severely limiting filing extensions, and new safe harbors that have yet to be entirely fleshed out. Join us Wednesday, December 21, for Payroll Compliance: Preparing for Year-End and 2017.
Pension COLAs. Employees can continue to defer $18,000 into their 401(k) accounts on a pretax basis. The overall amount they can defer—including pretax, after-tax and employer contributions—is the lesser of 100% of their compensation or $54,000.
Qualified transportation fringes. The monthly tax-free reimbursement for qualified employer-provided parking and pretax mass transit benefits remains $255.
Health benefits. The salary limit for the 50% small employer tax credit increases to $26,200, from $25,900. The maximum pretax amount employees can salt away in their health flexible spending accounts remains $2,600.
Our timely new webinar, led by payroll expert Alice Gilman, Esq., editor of Payroll Legal Alert, will show you: - What's changed with W-2s and how you should respond
- 8 steps for completing 1099s that will keep the IRS off your back—forever
- Step-by-step instructions and tips on how to complete new Forms 1095/1094 to
report offers of health benefits to full-time employees - How to gain cooperation from other departments to ensure a smoother year-end process
- How to protect payroll against scammers and ID thieves who are becoming more aggressive
- What's on the IRS's regulatory plate for 2017 and 2018
- Mandatory reporting of employees' health benefits—even if you're off the hook for the employer mandate penalties this year
- And more!
This 75-minute training session gives you practical, easy-to-understand solutions to the complex issues you'll face in December and January. Plus, you'll get answers to your specific questions during our interactive Q&A session.
Bonus: Each attendee will receive a copy of our 2017 Payroll Checklist, a 14-page, step-by-step compliance guide to each pay period, month and calendar quarter of the year. Plus, get all the critical information you need to satisfy your ACA reporting duties.
Year-end payroll mistakes can cost a pretty penny … and cause upper management to lose confidence in your payroll department. Don't let that happen! Guard yourself with Payroll Compliance: Preparing for Year-End and 2017.
Very informative Blog. Thank you for sharing this information.
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