Honu Wealth Management
Garth A Williams, MBA, CFP®
Financial Advisor
1307 S Mary Ave, Suite 101
Sunnyvale, CA 94087
650-917-3400
garth@honuwealth.com
www.HonuWealth.com
 
 




2018 Key Numbers

 

Business Planning

Adoption Assistance Programs

Adoption assistance20172018
Maximum amount that can be excluded from employee's gross income$13,570 $13,810
Phaseout threshold amount$203,540 $207,140
Completed phaseout amount after$243,540 $247,140

Earnings subject to FICA taxes (taxable wage base)

FICA tax20172018
Maximum annual earnings subject to Social Security taxes$127,200$128,400
Social Security and Medicare combined tax rate15.30%115.30%1
OASDI portion (Social Security)12.40%12.40%
Hospital Insurance portion (Medicare)2.90%12.90%1

1 An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).

Health insurance deduction for self-employed

Health insurance premiums20172018
Deduction for health insurance premiums paid by self-employed persons100%100%

Qualified transportation fringe benefits

Qualified transportation fringe benefits20172018
Commuter vehicles and transit pass monthly exclusion amount$255$260
Qualified parking monthly exclusion amount$255$260
Qualified bicycle commuting reimbursement fringe benefit (monthly amount)$20N/A

Section 179 expensing

Section 179 expensing 20172018
Maximum amount that may be deducted under IRC Section 179$510,000 $1,000,000
Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount$2,030,000 $2,500,000

Small business tax credit for providing health-care coverage

Amount of credit20172018
Maximum credit percentage50%50%
Partial credit20172018
Number of full-time equivalent employees (FTEs) fewer than:2525
Maximum average annual wages less than:$52,400 $53,200
Full credit20172018
Number of full-time equivalent employees (FTEs) no more than:1010
Maximum average annual wages less than or equal to:$26,200 $26,600

Special additional first-year depreciation allowance

Bonus depreciation20172018
"Bonus" depreciation for qualified property acquired and placed in service during specified time periods50%100%

Standard mileage rate (per mile)

Business use of auto20172018
Use of auto for business purposes$0.535$0.545

Tax on accumulated earnings and personal holding company income

Accumulated earnings and personal holding company income20172018
Maximum tax on these items20%20%


This information was developed by Forefield, Inc. an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.