Tag: Changes (page 2 of 2)

2021 Minimum Wage in NYS

As of 12/31/2020, the basic minimum wage will be $12.50 per hour in most of New York State.

The minimum wage rate differs based on: the fast food industry, tipped workers, Long Island, Westchester County, large and small employers in New York City.

General Minimum Wage Rate Schedule
NYC – Large & Small Employers $15.00
Long Island & Westchester $14.00
Remainder of New York State $12.50

For more information on the increased minimum wage specific to your industry, please click here.

Employers must post a Minimum Wage Information poster as well as various other posters in their place of work visible to all employees.

2021 NYS Misc Workers Minimum Wage Poster

Various Posters for the Workplace (NYS)

Minimum Wage for 2020 in NYS

Starting 12/31/2019 through 12/30/2020, the basic minimum wage will be $11.80 per hour in most of New York State.

The minimum wage rate differ based on: the fast food industry, tipped workers, Long Island, Westchester County, large and small employers in New York City.

General Minimum Wage Rate Schedule
NYC – Large & Small Employers $15.00
Long Island & Westchester $13.00
Remainder of New York State $11.80

For more information on the increased minimum wage specific to your industry, please click here.

Employers must post a Minimum Wage Information poster as well as various other posters in their place of work visible to all employees.

2020 NYS Misc Workers Minimum Wage Poster

Various Posters for the Workplace (NYS)

 

 

New W4 Form for 2020

The beginning of a new year is a great time for employees to review their withholding and determine if any adjustments are necessary.

The IRS has released the 2020 Form W4 which has been redesigned to reduce complexity and increase the accurateness of the withholding system.

The 2020 W4 form should be used by new hires and any employees making withholding changes in 2020.

Click here to view the 2020 Form W4

Click here for more information regarding the 2020 Form W4

How Much Can You Save for Retirement in 2020?

The IRS has announced the contribution limit for employees who participate in a 401K, 403B and most 457 plans will increase to $19,500 for the tax year 2020 (up from $19,000 in 2019).

The catch-up contribution limit for employees aged 50 and over who participate in these plans will increase to $6,500 (up from $6,000 in 2019).

Recent Name Change?

Taxpayers change their names for several reasons (i.e. new marriage, recent adoption, divorce).

Regardless of the reason, taxpayers should notify the Social Security Administration (SSA) of any name changes as soon as possible. The IRS checks the SSA records to ensure that the names and social security numbers on the forms match.

Failing to notify the SSA of a name change can delay the processing of a taxpayer’s federal tax returns as well as any tax refunds.

Increased Minimum Wage in NYS

Starting 12/31/2018 through 12/30/2019, the basic minimum wage will be $11.10 per hour in most of New York State.

The minimum wage rate differ based on: the fast food industry, tipped workers, Long Island, Westchester County, large and small employers in New York City.

General Minimum Wage Rate Schedule
NYC – Large Employers (of 11 or more) $15.00
NYC – Small Employers (10 or less) $13.50
Long Island & Westchester $12.00
Remainder of New York State $11.10

For more information on the increased minimum wage specific to your industry, please click here.

Employers must post a Minimum Wage Information poster as well as various other posters in their place of work visible to all employees.

2019 NYS Misc Workers Minimum Wage Poster

Various Posters for the Workplace (NYS)

The IRS Releases the 2019 Standard Mileage Rates

Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
  • 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
  • 14 cents per mile driven in service of charitable organizations.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.

For more details see Notice-2019-02.

Social Security Tax Increase for 2019

As of January 1, 2019, the maximum wage base that is subject to the Social Security payroll tax will increase from $128,400 to $132,900.

There is no limit on earnings subjected to the Medicare payroll tax.

New Tax Reform, Tax Cuts & Jobs Act

President Trump recently signed the tax reform bill into law which resulted into major changes to the code for both individuals and corporations. Here is a brief summary of the changes that will affect most of you.

  •  Tax Brackets – Same number of brackets, different tax rates and different ranges. If your taxable income is the same in 2018 as was 2017, you will pay less federal taxes. A lot of the difference are in the changes leading to “taxable income”.

 

  •  The marriage penalty is almost gone. – Under the old law the combined income for a married couple was taxed at a higher rate than the same total income for 2 individuals. For example: a single person with taxable income of $90K would be in the 25% bracket. A couple with $180k in taxable income is in the 28% bracket. Under the new law, both cases are in the 25% bracket.

 

  • New Standard Deductions

 

Filing Status Old Law New Law
Single $6,500 12,000
MFJ 13,000 24,000
MFS 6,500 12,000
HOH 9,350 18,000

 

  • Capital Gains (stock sales and sales of other appreciated assets)
    • Short term gains are taxed as ordinary income (no difference)
    • Long term rates are as follows:
Single MFJ HOH MFS
0% up to: $38,600 $77,200 $51,700 $38,600
15% up to: 425,000 479,000 452,400 239,500
20% over 425,000 479,000 452,400 239,500

 

  • Tax Breaks for Parents. The child tax credit is increased from $1,000 per child to $2,000 per child. Of that amount $1,400 is refundable. In addition, the phase out for eligibility is expanded.
Tax Status Old Law New Law
MFJ $110,000 $400,000
Individuals $75,000 $200,000
    • If children are 17 years and older or you care for elderly relatives, you can claim a nonrefundable credit of $500 each.

 

  • Home mortgage interest can only be taken for mortgage balances up to $750,000. This was previously $1 million. This applies to loans taken after Dec. 15, 2017. Interest on home equity debt can no longer be deducted.

 

  •  State and Local Tax Deduction (SALT) is now limited to $10,000.

 

  •  Deductions that are disappearing:
    •  Casualty and theft losses
    • Unreimbursed employee expenses
    • Moving expenses

 

  • Pass-through income from sole proprietorship, LLCs, partnerships, and S corporations will be able to deduct 20% of the profit. There are phaseout income limits that apply to “professional services” business owners. They are $157,500 and $315,000 for individuals and married couples respectively.

 

  • Corporate tax rates have been reduced for most corporations, but not for all. A corporation with profit below $50,000 will pay more in taxes. The new rate is 21% for all profits. The old rates were:
From To Rate
$0 $50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%

 

  •  Interesting: If in 2017 your corporate profit was $50,000; your federal tax was $7,500 (50K * 15%). That tax increases under the new law to $10,500 (50K * 21%).  Let’s hope this is corrected soon.

Increased Minimum Wage in NYS

From 12/31/2017 to 12/30/2018, the basic minimum wage is $10.40 per hour in most of New York State.

 

There are different minimum wage rates for: the fast food industry; Long Island; Westchester County; and large and small employers in New York City.

 

General Minimum Wage Rate Schedule

NYC – Large Employers (of 11 or more) $13.00

NYC – Small Employers (10 or less) $12.00

Long Island & Westchester $11.00

Remainder of New York State $10.40

 

For more information on the increased minimum wage specific to your industry, please visit the NYS Department of Labor.

 

Employers must post a Minimum Wage Information poster in their place of work.

 

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