The following table provides some important federal tax information for 2019, as compared with 2018. Many of the dollar amounts are unchanged and some changed only slightly due to inflation.
| Social Security/ Medicare | 2019 |
2018 |
| Social Security Tax Wage Base | $132,900 | $128,400 |
| Medicare Tax Wage Base | No limit |
No limit |
| Employee portion of Social Security | 6.2% | 6.2% |
| Employee portion of Medicare |
1.45% | 1.45% |
| Individual Retirement Accounts | 2019 | 2018 |
| Roth IRA Individual, up to 100% of earned income | $ 6,000 | $ 5,500 |
| Traditional IRA Individual, up to 100% of earned Income | $ 6,000 | $ 5,500 |
| Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older | $ 1,000 | $ 1,000 |
| Qualified Plan Limits | 2019 | 2018 |
| Defined Contribution Plan limit on additions on Sections 415(c)(1)(A) | $ 56,000 | $ 55,000 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $225,000 | $220,000 |
| Maximum compensation used to determine contributions | $280,000 | $275,000 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) | $ 19,000 | $ 18,500 |
| 401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older | $ 6,000 | $ 6,000 |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $ 13,000 | $ 12,500 |
| SIMPLE additional “catch-up” contributions for employees age 50 and older | $ 3,000 | $ 3,000 |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $125,000 | $120,000 |
| Compensation defining key employee (officer) | $180,000 | $175,000 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) | $ 600 | $ 600 |
| Driving Deductions | 2019 | 2018 |
| Business mileage, per mile | 58 cents |
54.5 cents |
| Charitable mileage, per mile | 14 cents | 14 cents |
| Medical and moving, per mile | 20 cents |
18 cents |
| Business Equipment | 2019 | 2018 |
| Maximum Section 179 deduction | $1,020,000 | $1,000,000 |
| Phase out for Section 179 | $2.55 million | $2.5 million |
| Transportation Fringe Benefit Exclusion | 2019 | 2018 |
| Monthly commuter highway vehicle and transit pass | $ 265 | $ 260 |
| Monthly qualified parking | $ 265 | $ 260 |
| Standard Deduction | 2019 | 2018 |
| Married filing jointly | $24,400 | $24,000 |
| Single (and married filing separately) | $12,200 | $12,000 |
| Heads of Household | $18,350 | $18,000 |
| Domestic Employees | 2019 | 2018 |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. | $ 2,100 | $ 2,100 |
| Kiddie Tax | 2019 | 2018 |
| Net unearned income not subject to the “Kiddie Tax” | $ 2,200 | $ 2,100 |
| Estate Tax | 2019 | 2018 |
| Federal estate tax exemption | $11.4 million |
$11.18 million |
| Maximum estate tax rate | 40% | 40% |
| Annual Gift Exclusion | 2019 | 2018 |
| Amount you can give each recipient | $15,000 | $15,000 |
TESTIMONIALS
As we’ve grown, so have our administrative and payroll needs. That’s why we’ve partnered with HR&P. HR&P supports us every day with human resources, payroll, benefits and compliance so we can focus on being the best BB’s Cafe we can be!
Since 2010, my company has grown to over five hundred employees. With our tremendous growth we needed a human resources and payroll company that could grow with us. That company is HR&P. And as laws have changed, like the Affordable Care Act, HR&P has kept us in compliance. I focus on growing Twin Eagle. I trust HR&P with the rest.
We are the industry leader in Oil Spill Cleanup Products and have dealt with numerous Oil Spill disasters. Knowing up close what a disaster looks like we choose to avoid them in our offices. HR&P guides us through the land mines of HR, Payroll and Benefit compliance so my team can focus solely on helping our clients with their problems, and we avoid our own.
One of the best things we did for our business was to partner with HR&P. They’re the experts in human resources, payroll and benefits administration.
HR&P’s web based solutions make it easy for us to manage our employee’s needs. They also help us stay compliant with the Affordable Care Act and with “the alphabet soup” of constantly changing Governmental regulations.
I run a restaurant, from early in the morning to late at night, our team works hard to deliver great food in a fun atmosphere.
But there’s a lot more to running a business like human resources, payroll, benefits and compliance. So we turn to HR&P.
Outsourcing to HR&P keeps us focused on our business.
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