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| Social Security Wage Limit |
Increased from $90,000 in 2005 to $94,200 in
2006.
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| Social Security Percentage |
Will remain the same at 6.2% for both employer
and employee.
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| Medicare Tax of Social Security |
Will remain the same at 1.45% for both employer
and employee. All wages are subject to Medicare tax.
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| Maximum Social Security Tax Withheld (Does
Not Include Medicare Tax) |
Increased from $5,580.00 in 2005 to $5,840.40
in 2006.
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| Federal Unemployment Taxable Wage Limit |
Will remain the same at $7,000.
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| Federal Unemployment Net Tax Percentage |
Will remain the same at .8%.
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| Missouri Unemployment Insurance Taxable
Wage Limit |
Will remain the same at $11,000 .
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| Kansas Unemployment Insurance Taxable Wage
Limit |
Will remain the same at $8,000.
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| Requirements for Federal Employment and
Withholding Taxes |
You will be either a monthly or semiweekly
depositor. The IRS should notify you each November of your deposit
status for the coming calendar year.
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| 2003 Mileage Rate in Effect January
1, 2003 - $.36 per mile |
| 2004 Mileage Rate in Effect January 1,
2004 - $.37½ per mile |
| 2005 Mileage Rate in Effect January 1, 2005 thru August 31, 2005 - $.40½ per mile |
| 2005 Mileage Rate in Effect September 1, 2005 thru December 31,
2005 - $.48½ per mile |
2005 Mileage Rate in Effect January 1, 2006 - $.44½ per mile
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| Maximum Contribution for Elective Deferrals
to 401k Plan |
Increased from $14,000 in 2005 to $15,000 in 2006. An additional deferral may be available for employees age 50 or older of $4,000 in 2005 and $5,000 in 2006; however, your plan must include this catch-up provision before this can be implemented.
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| Maximum Contribution for Elective Deferrals to Simple Plan |
Will remain the same at $10,000 in 2005 and 2006. An additional deferral may be available for employees age 50 or older of $2,000 in 2005 and $2,500 in 2006.
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| Note |
The above listed payroll tax changes reflect
only changes for 2006 that have been published as of December, 2005,
and are subject to change.
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