Millions of Big Earners Should Expect Higher Payroll Taxes in ‘17

shutterstock_260489408

 

For those who have been excited to see their tax bill go down under a Trump administration, there might be cause for some concern, especially for some of the country’s highest earners. That’s because for the millions of workers who pass a certain threshold a tax hike is coming. So why the increase?

First, this change was in place before President Trump won the election in November. This scheduled change comes in the form of an adjustment to Social Security payroll taxes, and it will affect a lot of high earners. Over the past several years, workers have paid a 6.2 percent payroll tax to Social Security, which is matched by employers and automatically deducted from their paychecks.

That number will remain the same in 2017, but there is a catch. It used to be that workers only paid that amount on the first $118,500 they earned for the year. This year, that threshold increases to $127,200. That will amount to hundreds of dollars for anyone affected. Meantime, for self-employment workers, the news is even worse because they are forced to pay the full Social Security tax themselves without splitting the cost with an employer.

So how many people are we talking about? Anyone that makes less than $118,500 won’t be affected but the estimated 12 million workers that make more than that will see a hit, which amounts to one of the biggest changes in the tax code in nearly 30 years.

http://time.com/money/4628475/payroll-taxes-social-security-2017/

Posted in

Committing to Humanity is So Important

Heidi Kuhn – Founder of Roots of Peace Heidi Kuhn is passionate about humanitarian work and has dedicated her life to making a difference in the world. As the founder of Roots of Peace, a humanitarian-nonprofit organization that is working to replace the scourge of landmines with sustainable agricultural farmland, Heidi, via Roots of Peace,…

Jason Earl

The Evolution of Business Education

The Evolution of Business Education Dr. Jason Earl, Director for the Willes Center for International Entrepreneurship at BYU-Hawaii Dr. Jason Earl Transcript: Alan   Can you share a little about your background?   Jason   I started down the path of engineering, ended up in corporate finance, ran a startup company, which sold to a private equity…

Mark Lachance, Building One of the Largest Social Media Marketing Agencies in the World

Building One of the Largest Social Media Marketing Agencies in the World

Mark Lachance, CEO of Maxy Media Renowned figure, Mark Lachance is a serial entrepreneur, strategic thinker, and investor. He is the CEO and lead investor of Maxy Media Inc., one of the largest TikTok, Facebook, Snapchat, and Google Display Network performance marketing agencies in the world. Currently, Maxy Media is the number one advertiser in…

Amazon, Alan L. Olsen, CPA

Amazon Best Seller, “My Path” Donates 100% of Proceeds

Alan L. Olsen, CPA and Author of the Amazon best selling book “My Path, Living the Life You Deserve”, is donating all proceeds from the book towards supporting the James Alma Lee Learning Center and Southern Virginia University. The Book is now an Amazon best seller! We are excited and proud to announce that after…