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/
Nancy Gale, Founder of JAMAH
Nancy Gale is an inspiring individual with a fascinating story of overcoming hardship and creating something beautiful out of the pieces…
Venktesh Shukla: His Journey into the VC World
Interview Transcript, Venktesh Shukla: His Journey into the VC World: Alan Olsen: Can you tell us a little about your background? Venktesh Shukla: I was born and brought up in India. I did bachelor’s in electrical engineering my sister was in US and she thought that every self-respecting electrical engineer should be in Silicon Valley so…
Henry Wong, Founder of Diamond Tech Ventures
Interview Transcript, Henry Wong, Founder of Diamond Tech Ventures: Alan Olsen: Welcome back I’m visiting here today with Henry Wong. He’s a venture capitalist here in Silicon Valley and the founder of Diamond TechVentures. Welcome to today’s show. Henry Wong: Thank you. Alan Olsen: Now you’ve done a lot in your career, but so for…
How to Stop Cyber Criminals From Stealing Your Info
How to Stop Cyber Criminals From Stealing Your Info Tax season has come and gone, and we won’t have to worry about the next one for several months. But just because you’re taking a rest from taxes, it doesn’t mean potential cyber criminals are too. Cyber criminal activity is on the rise and these scammers…