Helpful Tips

Withholding Deposit Rules: If you deposit your taxes at the same time you write each payroll, you need not change your method. If you are required to deposit your funds electronically, you will receive notification from the IRS.

Withholding Rules                       Federal

Less than $2,500                         Deposit with return

$2,500 and over                           *

$100,000 and over                      1 banking day

Up to $50,000 annual  liability  15th of following month    

 
Withholding Deposit Rules                 State

Less than $1,000 annually     If allowed by state, with annual 

                                            return 941-A. All else, monthly.  

$1,000-$12,000 annually         15th of following  month

$12,000 and over annually      Deposit at time of payroll 

 Remember all checks that are written for payment of Federal or State taxes should have the Company's Federal Identification number on it.

 Please categorize payments for meals, entertainment, and travel. 




Code Section 

                                                                                               Elective Deferrals 402 (g) (1) 16,500
catch- up 414 (v) (2) (B) (i)      5,500

SIMPLE Deferrals 408 (p) (2) (E)  11,500   
Catch- up 414 (v) (2) (B) (ii)           2,500


DC Plan Annual Additions Limit      49,000
       415 ( c) (1) (A)


DB Plan Limit Anuual Benefits        195,000
      415 (b) (1) (A)

 Compensation Limit                       245,000
Section 401 (a) (17) / 404( I) 


Highly Compensated Employee      110,000
 Compensation 414 (q) (1) (c)


Compensation Defining Key              160,000
Employee (officer) 416 (I) (1) (A) (i) 


Social Security Taxable Wage BAse     $106,800
                         (SSTWB)