important -.doc

IMPORTANT To: Clients and Associates From: PRECISION PAYROLL Date: January 2016 Subject: Payroll Tax Highlights/Update Bulletin -2016 Enclosed you will find our annual Payroll Tax Highlights/Update Bulletin for Tax Year 2016. During this time of the year, you will start receiving several tax forms, notices of2016 rates, etc. from the various taxing jurisdictions. For those of you who use our payroll/tax services, it is extremely important that you, in turn, send them toour office for recording, etc. as soon as they are received. If you have any questions, please contact our office. This bulletin will also be available onour website. Log on today! roll Tax Bulletin “2016 ” Federal Withholding Tax You may withhold federal e tax by using either the wage-bracket tables or the percentage method tables. These official methods and applicable withholding schedules are published by the Internal Revenue Service in the ANNUALLY revised Circular E, Employer's Tax Guide, Publication 15. Social Security (FICA Tax) - OASDI and Medicare bined Social Security and Medicare EMPLOYER tax rate for 2016 is % -- % for social security (OASDI) and % for hospital insurance (Medicare). bined Social Security and Medicare EMPLOYEE tax rate for 2016 is % -- % for social security with a limit of $118,500 (OASDI) and % for hospital insurance (Medicare) with an additional increase of %