Federal Publication 15 (2023), Employer Tax Guide

Publication 15 (Circular E), Employer's Tax Guide, is an IRS resource offering comprehensive guidance to employers. It covers various aspects of tax responsibilities, such as withholding rates, reporting requirements, and compliance procedures. This guide serves as a valuable reference for employers in understanding and fulfilling their tax-related obligations.

What's New in 2023: Social Security and Medicare Tax Updates

  • Social Security Tax Rate:

    • 6.2% each for employer and employee, totaling 12.4%.
    • Qualified sick and family leave wages are subject to a 6.2% tax rate.
    • The wage base limit is $160,200.
  • Medicare Tax Rate:

    • Remains at 1.45% for both employer and employee.
    • No wage base limit for Medicare tax.
  • Applicability:

    • Social security and Medicare taxes apply to household workers paid $2,600 or more in cash wages in 2023.
    • Election workers earning $2,200 or more in cash or equivalent compensation are also subject to these taxes.
  • Small Business Payroll Tax Credit:

    • Qualified small businesses can claim up to $250,000 credit for increasing research activities as a payroll tax credit.
    • The Inflation Reduction Act increases the election amount to $500,000 for tax years beginning after December 31, 2022.
    • Credit must be elected on Form 6765 and reported on Form 8974.
  • Form Changes in 2024:

    • Forms 941-SS and 941-PR discontinued after 2023.
    • Publications 51, 80, and 179 will no longer be available after 2023.

For current year's Employer Tax Guide, click here.