2019 Year End Memo to Clients

FICA Tax Changes for 2020: 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  $ 137,700.00

Maximum Social Security Tax – Employers                  8,537.40

Maximum Social Security Tax – Employees                  8,537.40

Maximum Wages Subject to  Medicare Tax               Unlimited

Social Security Tax Rate:                        

  Employees               6.20%                        

  Employers                6.20%

(Medicare Wages over $200,000.–becomes  2.35%for  employees  only)  
 Medicare Tax Rate:

  Employees                                                                           1.45%}-

  Employers                                                                            1.45%

  As  of  01/01/2020, minimum  wage  is $13.00 / hr. in Nassau, Suffolk & Westchester   $15.00 / hr. in NYC

       As of  01/01/2020, minimum wage for  NJ  is  –  $11.00 / hr.

       As of  01/01/2020, NYS Unemployment Wage Base is  –  $ 11,600.0 There is a rate increase for the New York Family Leave Act from 0.153% to 0.27% of an employee’s gross wages up to an annual maximum of $196.72 for the 2020 calendar year.

  • All Forms W-2 and 1099 are due to Recipient and Authorities by 01/31/20.
  • There is a new Form W-4 for employees hired after 01/01/20. (attached).
  • Form I-9, Employment Verification, dated 07/17/17, must be used for any new employee effective 08/01/17.
  • 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.
  • We are an authorized  Quickbooks-Pro  Advisor and,  as such,  can get you discounts on  Quickbooks,  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.
  • Visit  our  Facebook  page  under  ” Michael J. Berger and Co., CPA’s, LLP “

**    Additional information will be posted to our website: www.bergercpa.com.

Happy,  Healthy  New  Year!



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