Here are two tax changes for 2014 that you should be aware of.
1. Social Security Wage Baseline – Fortunately, you are limited on the earnings subject to taxation every year for Social Security. The tax rate stayed the same at 6.2%, however the earnings base in 2014 is $117,000, up from $113,700 in 2013. Put simply, you may be subject to a bit more tax liability for Social Security if your salary allows for it. Remember too, the 6.2 percent rate is paid by both employee and employer.
2. Pension and 401k limits – The contribution limit for your 401k is staying the same in 2014. However, some notable changes include: