The New Page 11 in the Advisor
Check out the new page 11 in the Nov/Dec issue of The NASPP Advisor (arriving in your mailbox this week)! We have some exciting new features, including a snapshot of data from the NASPP’s 2013 Domestic Stock Plan Design Survey (co-sponsored by Deloitte)–complete with graphs and charts, “Seen & Heard,” and ten things you don’t know about Paz Dizon.
Working from Your Core
The NASPP’s career blogger, Andrea Best of Stock & Option Solutions, has posted a new entry in our Career Corner blog: “Working from Your Core: Step One, Self Reflection.”
NASPP To Do List
Here’s your NASPP “to do” list for this week.
– Barbara
Tags: NASPP To Do List
The IRS and the Social Security Administration have announced the COLAs for next year. That’s COLAs as in “cost of living adjustments” (in case you were wondering what the IRS and SSA have to do with soda pop).
A Quiet Year
Some years are quieter than others when it comes to tax-related changes. At this time last year we were looking at changes to FIT withholding rates, FICA withholding rates, a new Social Security wage cap, new Medicare taxes, a threshold increase relating to highly compensated employees, plus last minute tax legislation at the start of the year to restore some FIT withholding rates to 2012 levels. I count at least seven NASPP Blog entries on the tax rate changes that went into effect (and didn’t go into effect after all) at the start of 2013.
What a difference a year makes! Things are a lot quieter this year. At the federal level, it looks like the only change that impacts stock compensation is the Social Security wage cap. Bad news for Jenn and I since now we’ll have to come up with other ideas for six more blog entries but good news for you since you won’t have to sort through and implement a bunch of tax rate changes over the holidays.
FICA
As noted, the wage cap for Social Security tax purposes will increase to $117,000, up from $113,700 last year. The tax rate remains the same at 6.2%, so this increases the maximum Social Security withholding to $7,254 per employee. Incidentally, the SSA estimates that about 10 million workers will pay higher taxes as a result of the increase.
As far as I know, the Medicare rates and the threshold at which the additional Medicare tax applies will remain the same in 2014.
Highly-Compensated Employees
The threshold at which an employee is considered highly compensated for purposes of Section 423 will remain at $115,000 in 2014. (Section 423 allows, but does not require, highly compensated employees to be excluded from participation.)
More Information
NASPP Alert (including three law firm memos)
SSA Press Release
IRS Press Release
– Barbara
Tags: cost of living adjustments, FICA, highly compensated, income tax, IRS, medicare, social security, tax withholding
Here’s what’s happening at your local NASPP chapter this week:
Kansas/Missouri: Gary Hamilton of My Equity Comp presents “6039 Compliance, Tips, and Tricks Filing your 3921/3922 Forms The Right Way.” (Wednesday, November 6, 11:00 AM, webinar only)
Silicon Valley: Patricia Boepple of Global Shares and Barrett Scott of Stock & Option Solutions present “Build Your Case: The Keys to Successfully Negotiating Change for Equity Programs in Your Organization.” (Wednesday, November 6, 11:30 AM)
I’ll be at the Silicon Valley meeting; I hope to see you there!
– Barbara
Tags: NASPP chapter meetings