Tax Advantage Accounts
Life Events FAQs
Defined Benefit Plans
The 2020 social security wage base is $137,700, up from $132,900 in 2019. The social security tax rate for employees is 6.2% and the employer portion remains the same at 6.2%. The maximum social security tax employees pay in 2020 is $8,537.40 and the employers pay is $8,537.40, both up from $8,239.80 in 2019.
IRS Section 132(f) limitations on excludable income for transportation fringe benefits that may be excluded from employee's income, federal employment taxes, FIT, FICA and FUTA are:
The 2020 standard deduction will be:
The IRS issued documentation giving the optional mileage rates for use in computing the deductible costs of operating an automobile for business and other purposes.
There is no limit to the wages subject to the Medicare tax. All covered wages are subject to a 1.45% tax. For employees' wages over $200,000, the tax increases by 0.9% to 2.35%.
The adoption expense exclusion from employee income in employer-provided qualified adoption program in 2020 is $14,300, increased from $14,080 in 2019.