2018 Year End Memo to Clients
YEAR END MEMO – 2018
TO: All Clients
DATE: January 2019
FICA Tax changes for 2019:
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 $ 132,900.00
Maximum Social Security Tax – Employers $8,239.80
Maximum Social Security Tax – Employees $8,239.80
Maximum Wages Subject to Medicare Tax Unlimited
Social Security Tax Rate:
Medicare Tax Rate:
Employees 1.45% (Employees earning over $200,000 are subject to additional 0.09 Medicare Tax)
NYS Unemployment wage base $11,400.00
The Federal & State agencies have been aggressively looking for ways to assess taxes & penalties.
Forms 1099 are still an area for target. All payments of $600. per year to non-corporate entities for services will need a signed and completed Form W-9 on file so we can complete a Form 1099 at yearend. 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.
We are an authorized Quickbooks-Pro Advisor and, as such, can get you discounts on Quick-books, Quickbooks upgrades, and Quickbooks supplies directly from Quickbooks. Our contact is Keith Van Order and his direct number is 214-387-2840. We were told our clients would receive a 30% discount when they mention our name.
We now have a Facebook page under ” Michael J. Berger and Co. CPA’s, LLP “