Social Security – Looking forward to 2022
The social security wage base for 2022 is $147,000, an increase of $4,200. The social security tax rate stays at 6.2%, meaning an employee's first $147,000 of wages are subject to 6.2% social security tax. However, the 1.45% Medicare tax on compensation is not capped. High-earners will also pay an additional 0.9% Medicare surtax on wages and self-employment income over $200,000 for single filers and $250,000 for married couples. The surtax does not apply to employers.
MILEAGE RATES & VEHICLE DEDUCTION CLAIMS
Note: At the time of writing, mileage rates for the 2022 tax year have not been approved and released by the IRS.
If you are going to claim vehicle deductions, you are required to keep a detailed and accurate log of all business trips for each vehicle. Examples of information to be logged include the date of the trip, beginning and ending odometer readings, mileage driven, destination, specific business purpose for the trip, and other expenses incurred ( e.g., parking and tolls). IRS rules dictate such a log must be maintained in a timely fashion. Also, vehicles for which drivers claim the IRS's standard mileage rate are not eligible for depreciation expense.