Federal Payroll Compliance Highlights for 2017.
The current federal minimum wage is $7.25 per hour, however some states have a higher minimum wage rate. When the state minimum wage rate is higher than the federal rate, workers are paid the higher amount. Minimum Cash Wage (Tipped Employee) $ 2.13, Maximum TIp Credit $5.12 and Youth Minium Wage: $4.25.
Supplemental Wage / Bonus Rates: 25% (Unchanged from 2016)
Pay over $1 Million: 39.6% (Unchanged from 2016)
| Social Security (OASDI) Program Rates & Limits | 2017 | |
|---|---|---|
| Tax Rates (percent) | ||
| Social Security (Old-Age, Survivors, and Disability Insurance) | ||
| Employers and Employees, each a | 6.20 | |
| Medicare (Hospital Insurance) | ||
| Employers and Employees, each a | 1.45 | |
| Maximum Taxable Earnings (dollars) | ||
| Social Security | 127,200 | |
| Medicare (Hospital Insurance) | No limit | |
| Earnings Required for Work Credits (dollars) | ||
| One Work Credit (One Quarter of Coverage) | 1,,300 | |
| Maximum Taxable Earnings (dollars) | 5,200 | |
| Earnings Test Annual Exempt Amount (dollars) | ||
| Under full Retirement Age for Entire Year | 16,920 | |
| For Months Before Reaching Full Retirment Age in Given Year | 44,880 | |
| Beginning with Month Reaching Full Retirment Age | No limit | |
| Maximum Monthly Social Security Benefit for Workers Retiring at Full Retirement Age (dollars) | 2,687 | |
| Full Retirement Age | 66 | |
| Cost-of -Living Adjustment (percent) | 0.3 | |
| b. This rate does not reflect the additional 0.9 percent in Medicare taxes certain high-income taxpayers are required to pay. See IRS information on this topic. | ||
| Source: Social Security Administration (Quickfacts) | ||
| Supplemental Security Income (SSI) Rates & Limits | 2017 |
|---|---|
| Monthly Federal Payment Standard (dollars) | |
| Individual | 735 |
| Couple | 1,1103 |
| Resource Limits (dollars) | |
| Individual | 2,000 |
| Couple | 3,000 |
| Earnings Required for Work Credits (dollars) | |
| Monthly Income Exclusions (dollars) | |
| Earned Income | 65 |
| Unearned Income | 20 |
| Substantial Gainful Activity Level for the Nonblind Disables (dollars) Retirement Age for Entire Year | 1,170 |
| a. The earned Income exclusion consists of the first $65 of monthly earnings, plus one-half remaining eanings. | |
| Source: Social Security Administration (Quickfacts) |
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