Naples, FL -- (SBWIRE) -- 01/06/2017 -- In his latest Maxmoneyzone.org tax information article series, tax preparation planner Frank Ellis reveals that payroll tax rates for Social Security FICA this year will not change. He also reveals earnings thresholds and that Social Security tax is split between the employer and employee, totaling 12.4 percent. Significant fines and penalties are issued to those who fail to pay this tax. They're also responsible for interest due on unpaid amounts, Ellis says.
FICA tax rates are explained in more detail, with the combination of Social Security and Medicare payroll taxes described. The author mentions the requirements for self-employed individuals. The confusing process can be made easier by payroll systems that calculate the amounts.
Payroll rate changes are explained in detail as well. Although rates have stayed the same, the author says this is very unusual. Ellis also states that QuickBooks and other pay programs feature continuously updated payroll tax rates. He also links to a free payroll trial business can use when setting up their payroll system.
In addition, the article reveals the additional Medicare tax rates that will be paid by high earners. Ellis reveals how this applies to married taxpayers and single taxpayers. The payroll tax rates mentioned, he says, are changed by the government to be in line with cost of living adjustment calculations. This is so inflation doesn't affect purchasing ability of people who receive Social Security benefits.
QuickBooks for Dummies is also mentioned and the author provides a link to the publication. Ellis mentions that it is good for learning the basics of starting up a payroll system.
For a more detailed look at how to properly set up payroll, and to see the latest employment tax rates, read the article posted at http://maxmoneyzone.org/employment-tax-rates-for-2016-2017-for-payroll/
About Frank Ellis, MBA
Frank Ellis, MBA is a small business QuickBooks expert and published author. He is a graduate of the University of Michigan with a Major in Accounting and has worked for various high profile accounting firms, to include KPMG in the Cayman Islands. He has written accounting, tax and finance related articles for over 10 years and has published over 800 articles on the Internet.
Frank Ellis, MBA
Maximum Money Zone, LLC.
Address: 123 Napa Ridge Way, Naples, FL 34119