Payroll News

2017 Tax Withholding

Social Security Tax

Social Security withholding tax will be 6.2% for 2017.  The wage limit on which Social Security tax is calculated is $127,200 for 2017.

Medicare Tax for 2017

The current Medicare tax rate has not changed over the last few years and will remain at 1.45% up to $200,000. Medicare tax increases to 2.35% for wages received in excess of $200,000.

Federal Income Tax Withholding

Federal tax withholding tables for 2017 have been adjusted for inflation.  Refer to IRS Publication 15 (pdf) more information.

State of Iowa Income Tax Withholding

The State of Iowa income tax withholding tables will not change for 2017.  However, you may see an adjustment in Iowa income tax withholding on future paychecks as Iowa income tax withholding tables include federal withholding in the calculation of Iowa tax withholding.  Depending upon how your federal income withholding may change on future paychecks, it could have an effect on your Iowa income tax withholding.

State of Illinois Income Tax Withholding

Effective July 1, 2017, the Illinois Department of Revenue has increased their state withholding tax rate from 3.75% to 4.95%.  For more information, refer to Illinois Tax Bulletin FY2018-02.