On December 23, 2015, the Internal Revenue Service released the 2016 Publications 15-A, Employer’s Supplemental Tax Guide, and 15-B, Employer’s Tax Guide to Fringe Benefits.

 

Publication 15-A includes the 2016 federal percentage method withholding tables.  The publication also includes information on the extension of the work opportunity tax credit for tax-exempt organizations hiring qualified veterans and the treatment of payroll service providers as employers of film and television production workers under federal tax rules.

 

Additionally, Publication 15-A includes information on same-sex marriage and alternative federal income tax withholding tables for use in 2016; error corrections for previously filed employment tax returns; worker-status issues and employees of exempt organizations.

 

Publication 15-B includes information on the retroactive increase in excludable transit benefits for 2015. The publication confirms the standard business mileage rate for vehicular transportation or travel expenses for 2016.

 

Publications 15-A and 15-B are provided to supplement Publication 15, (Circular E), Employer’s Tax Guide, also released December 23, 2015.  Publication 15 confirmed the new January 31, 2017, due date for filing the 2016 Form W-2, Wage and Tax Statement, with the Social Security Administration.

 

Where Employers can Find More Details

To learn more about Publication 15 go to: https://www.irs.gov/pub/irs-pdf/p15.pdf

To learn more about Publication 15-A go to: https://www.irs.gov/pub/irs-pdf/p15a.pdf

To learn more about Publication 15-B go to: https://www.irs.gov/pub/irs-pdf/p15b.pdf

 

Thank you for choosing Paylocity as your Payroll Tax partner.  Should you have any questions please contact your Paylocity Account Manager.

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.