2023 Year End Memo to Clients
MEMORANDUM
TO: All Clients
DATE: December 2023
FICA Tax Changes for 2024:
FICA Tax includes both Social Security coverage and Medicare coverage, and are both a deduction from employee wages and matched by the employer.
Maximum Wages Subject to Social Security Tax
$168,600.00
Maximum Social Security Tax – Employers-6.20%
$10,453.20
Maximum Social Security Tax – Employees-6.20%
$9,932.40
Maximum Wages Subject to Medicare Tax-1.45%
Unlimited
Medicare Tax Rate: Wages
Employees
1.45%}- (Medicare Wages over 1.45%)- $200,000.— becomes 2.35% for employees only)
Employers
1.45%
As of 01/01/2024, minimum wage is $16.00 / hr. in Nassau, Suffolk & Westchester
16.00 / hr. in NYC
As of 01/01/2024, minimum wage for NJ is - $14.13 / hr.
As of 01/01/2024, NYS Unemployment Wage Base is - $ 12,500.00
The rate for the New York Family Leave Act is 0.373% of an employee's gross wages up to an annual maximum of $333.25 for the 2024 calendar year.
As of 01/01/2024, minimum wage for Home Care Workers is $18.55 / hr. in Nussau, Suffolk, Waterchester & NYC.
- All Forms W-2 and 1099 are due to Recipient and Authorities by 01/31/24
- NYS annual requirement for employee wage notifications is no longer required, except at new hire.
The Federal & State agencies have been aggressively looking for ways to assess taxes & penalties. Forms 1099 have become an area for target. All non-corporate entities for whose services you have paid $600.00 or more per year, must complete Form W-9 for you to have on file so we may prepare and issue a Form 1099. Businesses must issue Forms 1099 to all non-corporate entities who are paid $600.00 or more per year for services provided. Businesses must also issue a Form 1099 to their Landlord (unless the Landlord is a Corporation), for rent paid of $600.00 or more per year. Additionally, payments of $600.00 or more paid to Attorneys, including Corporations, are to be issued a Form 1099. For all sales that are exempt from sales tax, you must have a signed resale certificate or exemption certificate on file from the customer. If you need any forms or have any questions, please do not hesitate to contact our office.
- Please be advised that it is a misdemeanor offense to be collecting Sales Tax without having your Certificate of Authority on display at your place of business and, if you have employees, you must also have your Workers' Compensation and Disability Insurance Certificates displayed.
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** Additional information will be posted to our website: www.bergercpa.com.