Sage 100 ERP Consultant Announces 2013 Tax Changes for Businesses

As a Sage 100 ERP Consultant, we here at Convergence Technologies based in Ft. Wayne IN, wanted to share a few updates to changes that may affect your business and/or family with 2013 filings.   Here are a few updates we came across that may impact your business and/or family.  These updates include travel reibursement for mileage rates, self-employment (SE) income, IRS pension plan amounts, annual exclusion for gift increase and updated limitations for high-deductable health plans.  We hope you have a great 2013 and find this information useful.   Please visit us to see how we can help if you have any questions.  Happy Holidays and Happy New Year!

• 2013 Standard mileages rates have been increased to 56.5 cents per mile for business travel, 24 cents per mile for medical or moving expenses and 14 cents per mile for charity. (IRS News Release IR-2012-95). For 2012 the business travel rate was 55.5 cents per mile, 23 cents per mile for medical and moving expenses and 14 cents per mile for charity.

• For 2013, the first $ 113,700 of wages or SE income will be subject to Social Security component of the FICA tax.  There is no wage limit on the Medicare portion.  Also, the employee portion of the Medicare tax increases from 1.45% to 2.35% on wages and SE income in excess of $ 200,000 ($250,000 for Married Filing Jointly and $ 125,000 for Married Filing Separately).

• 2013 Pension Plan Amounts (IRS News Release IR-2012-77):
• Benefit limit for defined benefit plans $ 205,000.
• Defined contribution plan limit increases to $ 51,000.
• Compensation limit for determining benefits and contributions increases to $ 255,000.
• Definition of a highly-compensated employee is unchanged at $ 115,000.
• Elective deferral limit for employees who participate in 401(k), 403(b) and most 457 plans increased to $ 17,500.
• Limit on contributions to SIMPLE accounts increased to $ 12,000.

• 2013 Annual exclusion for gifts increases from $ 13,000 to $ 14,000.

• 2013 Updated limitations for a high-deductible health plan  for MSAs must have an annual deductible not less than $ 2,150 and not more than $ 3,200 for self-only coverage ($ 4,300 and $6,450 for family coverage), and annual limit on out-of-pocket expenses (other than premiums) of $ 4,300 for self-only coverage ($ 7,850 for family coverage).  IRB and News Release IR 2012-78.

Contact us if you’d like to learn more about how our Sage 100 ERP consultants can help your business uncover hidden revenue and cost-savings.

About Convergence Technologies, Ltd. - The mission of Convergence Technologies, ltd. is to provide quality business technology with exceptional service for our clients while promoting an enjoyable environment of continuous learning and growth for our staff.   Convergence Technologies, Ltd. Is based in Fort Wayne, IN and proudly serves the area and the nation helping clients grow their business.  Contact us at 877-483-0717 or visit http://www.converg-tech.com/contact-us.html  to learn more how our Sage 100 ERP Consultants  can help your business grow!