Tax Year 2015 Business Tax Updates

As we move into 2016, here are a few tax updates and reminders you should be aware of:

  • Florida Minimum Wage as of 1/1/16 – $8.05 ($5.03 for tipped employees) 
  • North Carolina Minimum Wage as of 1/1/16 – $7.25 (equal to Federal)
  • Payroll Taxes
    • Social Security tax remains 6.2% up to $118,500 in wages.
    • Medicare tax is 1.45% on all wages. If salary is more than $200,000, an additional 0.9% is withheld. When preparing your 2015 individual income tax return, and your combined earned income is greater than $200,000 ($250,000 if married filing joint, $125,000 if married filing separate), this tax will be reported and offset against your Medicare withholding.  If the Medicare withholding is greater than the additional Medicare tax, the excess amount will be applied to your federal income tax withheld.

Florida Reemployment Rates for Employers

  • Tax is on the first $7,000 of wages per employee
  • The minimum rate 0.10% for 2016
  • The maximum rate remains 5.4%
  • The rate for a new employer account remains 2.7% for the first 2 years.

 

  • 2015 Mileage Rates
    • Business Miles 5 cents/mile
    • Medical reasons 23 cents/mile
    • Moving 23 cents/mile
    • Charitable Services 14 cents/mile
  • 2016 Mileage Rates
    • Business Miles 54 cents/mile
    • Medical reasons 19 cents/mile
    • Moving 19 cents/mile
    • Charitable Services 14 cents/mile

 

  • If your business has and individual or LLC receive payments of $600 or more for services and/or rent, a Form 1099 is required to be issued. Payments to corporations are exempt UNLESS the payment was for Legal or medical services.
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