At Mackey Advisors we have two main lines of business. Our personal financial planning division and our business services arena offering financial advisory services to small businesses in the area of tax, accounting, Controllership and CFO consulting.
As President of the company, the bottom line is my responsibility, which has been no walk in the park this year. I have updated our revenue forecast and reprojected our budget more times this year than in all the 27 years of my business career combined. As business clients cut back their budgets, some cut their service level with Mackey Advisors. We took that time and repurposed our efforts to marketing.
Having more time to tell our story has paid off. We are now experiencing a higher level of growth than at any time in our 27 year history. Recession? Maybe it is just another word for opportunity.
Mackey McNeill, CPA/PFS
President and CEO
Mackey Advisors
www.CultivatingProsperity.com
Tuesday, October 27, 2009
Friday, October 16, 2009
Social Security wage base remains at $106,800 for 2010
The Social Security Administration has announced that the wage base for computing the Social Security tax (OASDI) in 2010 remains unchanged at $106,800.
With consumer prices down over the past year, monthly Social Security and Supplemental Security Income benefits for more than 57 million Americans will not automatically increase in 2010. This will be the first year without an automatic Cost-of-Living Adjustment (COLA) since they went into effect in '75. Since there is no COLA, the statute prohibits an increase in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts.
The FICA tax rate for employees and employers is 7.65% each—6.2% for Social Security and 1.45% for Medicare tax. For self-employed workers, the FICA tax is 15.3%—12.4% for Social Security and 2.9% for Medicare. There is a maximum amount of compensation subject to the Social Security tax, but no maximum for Medicare.
On a salary of $106,800 (or more), an employee and his employer each will pay $6,621.60 in Social Security tax in 2010, the same as in 2009.
A self-employed person with at least $106,800 in net self-employment earnings will pay $13,243.20 for the Social Security part of the self-employment tax in 2010, the same as in 2009.
The FICA tax rates have remained unchanged since '90.
With consumer prices down over the past year, monthly Social Security and Supplemental Security Income benefits for more than 57 million Americans will not automatically increase in 2010. This will be the first year without an automatic Cost-of-Living Adjustment (COLA) since they went into effect in '75. Since there is no COLA, the statute prohibits an increase in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts.
The FICA tax rate for employees and employers is 7.65% each—6.2% for Social Security and 1.45% for Medicare tax. For self-employed workers, the FICA tax is 15.3%—12.4% for Social Security and 2.9% for Medicare. There is a maximum amount of compensation subject to the Social Security tax, but no maximum for Medicare.
On a salary of $106,800 (or more), an employee and his employer each will pay $6,621.60 in Social Security tax in 2010, the same as in 2009.
A self-employed person with at least $106,800 in net self-employment earnings will pay $13,243.20 for the Social Security part of the self-employment tax in 2010, the same as in 2009.
The FICA tax rates have remained unchanged since '90.
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