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2017 Employer Tax Guide

 

 

 

 

 

 

PAYROLL GUIDE FOR THE YEAR 2017

Revised 1/6/2017

 

 EMPLOYEE DEDUCTIONS: 

§        SOCIAL SECURITY 6.2% The maximum amount of taxable earnings subject to the Social Security tax is $127,200.00.  The tax rate will be 6.2% for employers and employees. 

§        MEDICARE – 1.45% on all earnings.  The tax rate will be 1.45% for employers and (employees if wages are under the individual threshold amount of $200,000).  Note: For earnings exceeding $200,000($250,000 for couples) the additional Medicare Tax will be 0.9 percent.   

§        FEDERAL WITHHOLDING – Refer to Publication 15 Tax Tables (Circular E) Employer’s Tax Guide For 2017.   Also posted on the IRS website at www.irs.gov under the heading of "Forms and Pubs". 

§        PENNSYLVANIA INCOME TAX WITHHELD3.07%

§        PENNSYLVANIA  UNEMPLOYMENT COMPENSATION TAX –  07% or .0007 tax on employee wages, or .70 cents for each $1,000 earned.  (NEW)  Increase in Wage base from $9,500 to $9,750. 

§        LOCAL TAX RATE – Hermitage 2.25%;  Sharon 2.25%;  Farrell (R) 2.5%, Farrell (N/R 1.8%; West Middlesex 1.0%;  Sharpsville 1.0%;  South Pymatuning Twp. 1.0%; Greenville Boro (R) 1%, Greenville Boro (N/R) 1%;  New Castle (R) 2.1%, New Castle (N/R) 2.0%; Grove City Boro 1%.                                                                                  Website for Local Rates:                                                  http://munstats.pa.gov/Public/Default.aspx

(R) = resident    (N/R) = non-resident  (rates are subject to change)              

§        LOCAL SERVICES TAX or LST TAX – Please refer to the following website for the amount of LST Tax deduction for your municipality:  http:\munstats.pa.gov/Public/Default.aspx.  If an employee is exempt from LST tax, he or she must complete form “Local Services Tax – Exemption Certificate, Application For Exemption From Local Services Tax”.   Website for LST Tax Rates:  http://munstats.pa.gov/Public/Default.aspx

  

FORMS THAT ARE REQUIRED BY LAW TO BE FILLED

OUT BY EACH EMPLOYEE AND/OR EMPLOYER:

l    RESIDENCY CERTIFICATION FORMLocal Earned Income Tax Withholding. (keep in your records)

Form website:  http://www.hab-inc.com/forms/

l FORM W-4 – Remind all employees to submit a new Form W-4 if their withholding allowances or               filing status has changed.  (keep in your records)

       l FORM I-9  - (Employment Eligibility Verification)  You must verify that each new employee is legally                  eligible to work in the United States.  (keep in your records) 

l NEW HIRE REPORTING FORM – All Pennsylvania & Ohio Employers are required to report all newly   hired employees. (fax/mail/web address)

 PA Employers: https://www.cwds.pa.gov/cwdsonline/NewHire/NewHireProgramInformation/NewHireInformation.aspx

OH Employers: https://oh-newhire.com/