Instructions 944 Form 2016

Instructions for Form 944 Department of the Treasury Internal Revenue Service Employer s ANNUAL Federal Tax Return Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 944 and its instructions such as legislation enacted after they were published go to www.irs.gov/form944. What s New Social security and Medicare tax for 2016. The social security tax rate is 6. 2 each for the employee and employer unchanged from 2015. Instructions for Form 944 Department of the Treasury Internal Revenue Service Employer s ANNUAL Federal Tax Return Section references are to the Internal Revenue Code unless otherwise noted* Future Developments For the latest information about developments related to Form 944 and its instructions such as legislation enacted after they were published go to www*irs*gov/form944. What s New Social security and Medicare tax for 2016. The social security tax rate is 6. 2 each for the employee and employer unchanged from 2015. The social security wage base limit is 118 500 unchanged from 2015. The Medicare tax rate is 1. 45 each for the employee and employer unchanged from 2015. There is no wage base limit for Medicare tax. household workers you pay 2 000 or more in cash wages in 2016. Social security and Medicare taxes apply to election workers who are paid 1 700 or more in cash or an equivalent form of compensation in 2016. Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended* The unemployed veterans who begin work after December 31 2014 and before January 1 2020. Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C. For more information visit IRS*gov and enter work opportunity tax credit in the search box. Reminders COBRA premium assistance credit. Effective for tax periods beginning after December 31 2013 the credit for Form 944. Instead after filing your Form 944 file Form 944-X Adjusted Employer s ANNUAL Federal Tax Return or Claim for Refund to claim the COBRA premium assistance credit. Filing a Form 944-X before filing a Form 944 for the year may result in errors or delays in processing your Form 944-X. For more information visit IRS*gov and enter COBRA in the search box. If you re entitled to claim the COBRA premium TIP assistance credit but aren t otherwise required to file Form 944 file a Form 944 with -0- entered on line 11 before filing a Form 944-X to claim the credit. Additional Medicare Tax withholding. In addition to withholding Medicare tax at 1. 45 you must withhold a 0. 9 Additional Medicare Tax from wages you pay to an employee in excess of 200 000 in a calendar year. You re required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of 200 000 to an employee and continue to withhold it each pay period until the end of the calendar year.