The 2018 edition reflects a new version of the Form I-9 and the 2017 FICA-OASDI taxable wage base
. (Ringgold, Inc., Portland, OR)
This means that the taxable wage base
does not restart for FICA and FUTA purposes.
IRS Updates Taxable Wage Base
For Permitted Disparity
Even though the employee has received no cash compensation for those two PTO days, the employer is required to include the cash value of those two days in that employee's taxable wage base
A striking difference between the solvent and insolvent groups is the size of their statutory taxable wage base
(the dollar amount of wages that taxes are levied on in each state).
Others emphasize the system's projected long-range funding shortfall and contend that steps should be taken soon (e.g., raising the retirement age, restraining the growth of initial monthly benefits for future retirees, reducing cost-of-living adjustments, increasing the taxable wage base
) so that changes can be phased-in, allowing workers more time to adjust their retirement expectations and plans to reflect what the program will be able to provide in the future.
Recommendation: To provide incentives for states to build up and maintain stronger UI trust fund reserves, the Congress may wish to consider raising the FUTA taxable wage base
from its current level of $7,000 and indexing this base to average annual wages.
The law gradually increases the taxable wage base
from $8,000 per worker to $14,000 over three years.
The taxable wage base
in 2003 for Social Security will be $87,000, up $2,100 from $84,900 in 2002.
Arkansas' taxable wage base
is the first $9,000 paid to each employee.
Chapter 3 looks at another automatic change in UI laws, the indexing of the taxable wage base
, and determines that such a policy can improve a state's trust fund position.