CCP 12-13-1999 - Laserfiche WebLink

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DEC-09-1999 10:42 ,., e r"".. , " RS Announces New Mileage :tales for 2000 ~eginnjng JanUll.!)' I, 2000, the ntemal Revenue Service (IRS) has lIIllounced that it will restore the mleage rate for business use of an lutomobile to 32.5 cents from !be :um:nt 31 cents. The mileage rates for charitable purposes will remain at 14 cents per mile, and !be rates for medical and moving purposes will ~_~changed at 10 cents per ~s information can be found in Revenue Pt'ocedure 99-38, pub- lished in [ntenu:l Revenue Bulletin 1999-43, dated October 25. 1999. 0 . LEAGUE OF MN CITIES "UlOIi:lI "~lOUIIlY vvaye UG:'C all'" P.02/02 ........ . ......~~.... The maximum annual earnings subject to Sodal Secutity taxes will rise to $76,200 in 2000, up from $72,600 in 1999. The employee's and employer's rates for Sodal Secutity and Medicare payroll taxes will not change-6.2 percent for Social Security and I.4S percent for Medicare. The increase in the wage base, however, means the maximum Social Security taxes paid by the employee and employer will total $4,724.40 each in 2000, up from $4,501.20 each in 1999_ There is no wage limit for the Medicare payroll tax. Self-Employed Indi..iduals-Social Security and Medicare payroll tax rates for self-employed individuals remain at 15.3 percent for 2000-12.4 percent for Social Security and 2_9 percent for Medicare. As a result of the wage base increase, the maximum Social Security tax wHl now be $9,448.80, up from $9,002.40 in 1999. Social Security Beneliciarias- The cost-ot-Iiving increase for Social Security benefits will be 2.4 percent. Beneficiaries under age 65 can earn up to SlO,080 in 2000 without forfeiting benefits. For beneficiaries aged 65 through 69, the maximum amount will be $17,000_ Social SeCUrity benefits are not reduced for workers aged 70 and OVer, regardless of the amount of wages earned_ For re- cipients under age 65, $1 in benefits will be withheld for every $2 in earnings over SI0,080. Those aged 65 through 69 will have $1 in benefits withheld tor every $3 in earnings over $17,000. For additional information, please conract Debra Sawyer at (202) 879-4960. · IRS announces standard mileage rates for 2000 The IRS allows employees, self-employed individuals, and other taxpayers to use an optional standard mileage rate when computing the deductible costs of operating an automobile for business. charitable, medical, or moving expense purposes. Beginning on Januaty 1, 2000, the rates will be: ~ 32.S cents per mile (up from 31 cents) for business purposes, ~ 14 cents per mile (unchanged) for charitable purposes, and ~ 10 cents per mile (unchanged) for medical and moving expenses. Use of the srand..rd mileage method is not m..ndatoty-a taxpayer may use actual allowable expenses if he/she maintains adequate records or other sufficien[ evidence to substantiate the deduction_ For more information, please contact Don Herskovitz at (202) 879-4945. · TOTAL P.02