Millions of Big Earners Should Expect Higher Payroll Taxes in ‘17
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/
Martin Frey
Transcript: Alan Olsen: I’m visiting here today with Martin Frey, he’s a Guinness world record holder and, and also in individually has a passion for working with the youth and getting them off the internet and doing things in life. Welcome to today’s show. Thank you glad to be here. So Martin know, first of…
Restoring Quality of Life Through Joint Replacements | Alexander Sah
Transcript of Alexander Sah interview for the American Dreams Show, “Restoring Quality of Life Through Joint Replacements”: Alan Olsen: So just for the listeners, I’ve had personal experience with you. You’re my surgeon who helped you do a partial knee replacement. And thank you very much. But for the listeners here, can you give us…
Impact’19: Dr. Linda Farley
About Dr. Linda Farley Linda E. Farley, Ed.D, joined Girl Scouts Heart of Central California (GSHCC) in 2013 as its Chief Executive Officer. A lifelong advocate for youth development, Linda holds a doctorate in leadership from the University of St. Thomas, St. Paul. She has dedicated her career to creating opportunities for young people to…
Impact’19: Tom Kandris
About Tom Kandris Tom Kandris is a regional business leader from Northern California, and a serial entrepreneur and investor. Kandris spent the first half of his career entrenched in the semiconductor industry where he held domestic and overseas senior executive and board-level roles in major American, Japanese and European corporations. In 2000, Kandris cofounded PackageOne,…