Social Security Wage Base Will Increase 7.3% in 2017

October 18, 2016 by  
Filed under Employment Taxes

The Social Security Administration (SSA) announced that the maximum amount of annual earnings subject to Social Security taxes will increase to $127,200 in 2017, a 7.3% increase from the current $118,500 ceiling. This represents the largest single-year percentage increase since the wage base increased from $32,400 to $35,700 in 1983, an increase of 10.2%. SSA explained that the increase is due to the rise in average income and it estimates that the increase will affect roughly 12 million workers. Other cost-of-living increases released by SSA can be found here.

IRS Updates Guidelines for Substitute Wage Forms

March 29, 2016 by  
Filed under Information Reporting, IRS

The IRS released Revenue Procedure 2016-20 to update IRS and Social Security Administration guidelines for employers issuing substitute Forms W-2c, Corrected Wage and Tax Statements, and W-3c, Transmittal of Corrected Wage and Tax Statements. These guidelines assist employers with filing electronically; filing “red-ink” and “black-and-white” versions of Copy A of Form W-2c; and furnishing substitute privately printed versions of Copies B, C, and 2 of Form W-2c to employees. The guidance also provides rules regarding retention of both information and copies.

Revenue Procedure 2016-20 supersedes Revenue Procedure 2014-56, and several changes have been made. Although most of these changes are minor, one important change is the updated address for SSA inquiries about substitute black-and-white Forms W-2c Copy A and W-3c Copy A, which is now:

Social Security Administration Direction Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997