Press "Enter" to skip to content

Posts published in “Pension”

Priority of Deductions

0

There are times when an employee’s actual gross pay (excluding taxable fringe items) is insufficient to accommodate all of their deductions in full.  In those cases where there is not enough net pay, there is an order in which deductions are to be processed until the check is zero.  I am going to cover the basics of that order without going into the details of each specific deduction, as this would end up being a super-sized blog.  Be sure to check out my previous blogs for details on some of the specific deductions.   Deductions are taken in the order below,…

States Begin to Mandate Worksite Retirement Plans

0

There is a direct correlation between the size of an employer’s workforce and the likeliness of their offering a retirement plan.  While about 92% of companies having greater than 10,000 employees offer a 401(k)-style plan, those with under 10 employees, the rate drops to 8%.   The flip side is that 86% of employers do not offer a plan, which translates to about 68 million Americans without access to a employer-sponsored plan, and states have taken notice. Beginning in 2017, a number of states have implemented laws requiring smaller businesses to implement a plan with many more in the legislative proposal…

2016; not much different than 2015

0

As 2015 is just starting to wind down, the government has already set  many limits for 2016.  In general, the limitations will not change as a result of the cost of living index not meeting the statutory thresholds that trigger a change. The Old-Age, Survivors, and Disability Insurance (OASDI), aka Social Security, wage limit remains unchanged at $118,500 and a tax rate of 6.20%.  The last time the OASDI wage limit did not increase was between 2009 to 2011 where it remained at $106,800.  Prior to 2009, the limit had always increased going all the way back to 1950. The deferral limits for your pension…