FEDERAL TAXESTAXABLE EMPLOYER EMPLOYEE MAXIMUM MAXIMUM

TYPE OF TAX WAGE BASE TAX RATE TAX RATE EMPLOYER TAX EMPLOYEE TAXSOCIAL SECURITY $127,200 6.20% 6.20% $7,886.40 $7,886.40MEDICARE NO LIMIT 1.45% 1.45%* NO LIMIT NO LIMITFUTA $7,000 0.60% N/A $ 42.00 N/AFEDERAL INCOME TAX There will be new "Circular E" tables issued with an effective date of January 2017.*An additional 0.9% Medicare tax should be withheld on wages in excess of $200,000 for any employee. Employers are not required to match this tax.

STATE AND LOCAL INCOME TAXESWITHHOLDING

STATE TAX RATEPA 3.07%LOCAL (PA) Withhold local earned income tax at proper rate from each employee which is the GREATER of;

(1) The tax rate where the employee is employed (the employer non-resident rate); or(2) The tax rate where the employee lives, which is the employee resident rate

Visit http://munstats.pa.gov/Public/FindLocalTax.aspx to find your withholding rates by address

LST (PA) Varies by municipality (refer to link above)DE, MD, NJ Use wage bracket tax tables provided by state taxing authorities

STATE UNEMPLOYMENT TAXTAXABLE EMPLOYEE

STATE WAGE BASE TAX RATE REMARKSPA $9,750 0.07% *DE $18,500 -MD $8,500 -NJ $33,500 0.765% ** ** employee withholding rate applies to first $33,500 of wages

MINIMUM HOURLY WAGEFEDERAL/STATE Minimum Per Hour REMARKS

FEDERAL $ 7.25 Effective 7/24/09PA $ 7.25 Effective 7/24/09DE $ 8.25 Effective 6/1/15MD $ 8.75 Effective 7/1/16, Increases to $9.25 on 7/1/17 and $10.10 on 7/1/18NJ $ 8.44 Effective 1/1/17For all states, there are special rules for tips and meals.

2017 PAYROLL QUICK REFERENCE

REMARKS

*employee withholding rate applies to all wages

For all states, employer contribution rate is per your contribution rate notice.

SOCIAL SECURITY & MEDICARE BENEFITS

AGE LIMITMAXIMUM AMOUNT REMARKS

Age 62 to 65 $16,920 Maximum amount retirees can earn before losing Social Security benefits.Age 66 & over No Limitation A $44,880 earnings limit for 2017 applies to workers who retire in the calendar year when they turn 66. The limit is $3,740 per month for 2017 until the month the worker reaches full retirement.

(higher for married couples w/$170,000+ MAGI & singles w/$85,000+ MAGI)

RETIREMENT PLANS2016 2017$5,500 $5,500$1,000 $1,000$18,000 $18,000$6,000 $6,000$18,000 $18,000$6,000 $6,000

$18,000 $18,000$6,000 $6,000

$53,000 $54,000$265,000 $270,000

STANDARD DEDUCTION/PERSONAL EXEMPTIONMaximum Contribution / Deferral Limits: 2016 2017

$12,600 $12,700$6,300 $6,350$9,300 $9,350$6,300 $6,350$4,050 $4,050

MISCELLANEOUSStandard Mileage Rate: 53.5 cents per mileW-2 New Filing Due Date: The new due date for filing W-2s and W-3s with SSA is now January 31, 2017when you file using paper forms and electronically. Many states have also accelerated the filing deadlines forannual reconciliations returns and form W-2s.W-2 Reporting for Health Insurance: If 250+ W-2s were filed in a previous year, employers must report

reporting is informational only and not subject to tax.1099-MISC New Filing Due Date For Nonemployee Compensation: The new due date for reporting non-employee compensation (Independent Contractor) on 1099-MISC, box 7 with IRS is now January 31, 2017when you file using paper forms and electronically. All other types of 1099s are due February 28, 2017 iffiled using paper or March 31, 2017 if filed electronically.Year-end Bonus Reminder: Year-end bonuses may trigger to exceed federal tax liability of $100,000 and may alter taxability deposit schedules and requirements. Please contact your RKL advisor for guidance on this topic.

2017 PAYROLL QUICK REFERENCE (continued)

IRA/Roth IRAIRA/Roth IRA: Catch-up contribution for individuals aged 50 and older401(k) plans 401(k) plans: Catch-up contribution for participants aged 50 and older

Maximum Contribution / Deferral Limits:

the cost of employer-provided health insurance costs on the current year W-2s, Box 12, Code DD. This

2017 Medicare Part B Premium: $134/month

Joint return or surviving spouseSingle (other than head of household of surviving spouse)

Married filing separate returnsPersonal exemption

Head of household

403(b) plans403(b) plans: Catch-up contributions for participants aged 50 and older457 plans457 plans: Catch-up contributions for participants aged 50 and olderDefined contribution plan maximum dollar limitAnnual plan compensation limit