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
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2023 Key Numbers
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| | Business Planning
Adoption Assistance Programs
| Adoption assistance | 2022 | 2023 |
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| Maximum amount that can be excluded
from employee's gross income | $14,890 | $15,590 | | Phaseout threshold
amount | $223,410 | $239,230 | | Completed phaseout amount
after | $263,410 | $279,230 |
Earnings subject to FICA taxes (taxable wage base)
| FICA tax | 2022 | 2023 |
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| Maximum annual earnings subject to
Social Security taxes | $147,000
| $160,200
| | Social Security and Medicare combined
tax rate | 15.30%1 | 15.30%1 | | OASDI portion (Social
Security) | 12.40% | 12.40% | | Hospital Insurance portion
(Medicare) | 2.90%1 | 2.90%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 premiums | 2022 | 2023 |
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| Deduction for health insurance
premiums paid by self-employed persons | 100% | 100% |
Qualified transportation fringe benefits
| Qualified transportation fringe benefits | 2022 | 2023 |
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| Commuter vehicles and transit pass
monthly exclusion amount | $280 | $300 | | Qualified parking monthly exclusion
amount | $280 | $300 | | Qualified bicycle commuting
reimbursement fringe benefit (monthly amount) | N/A | N/A |
Section 179 expensing
| Section 179 expensing
| 2022 | 2023 |
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| Maximum amount that may be deducted
under IRC Section 179 | $1,080,000 | $1,160,000 | | Deduction reduced by the amount by
which the cost of §179 property placed in service during the year exceeds this
amount | $2,700,000 | $2,890,000 |
Small business tax credit for providing health-care
coverage
| Amount of credit | 2022 | 2023 |
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| Maximum credit
percentage | 50% | 50% |
| Partial credit | 2022 | 2023 |
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| Number of full-time equivalent
employees (FTEs) fewer than: | 25 | 25 | | Maximum average annual wages less
than: | $57,400 | $61,400 |
| Full credit | 2022 | 2023 |
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| Number of full-time equivalent
employees (FTEs) no more than: | 10 | 10 | | Maximum average annual wages less
than or equal to: | $28,700 | $30,700 |
Special additional first-year depreciation allowance
| Bonus depreciation | 2022 | 2023 |
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| "Bonus" depreciation for qualified
property acquired and placed in service during specified time
periods | 100% | 80% |
Standard mileage rate (per
mile) | Business use of auto | 2022 | 2023 |
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| Use of auto for business
purposes | $0.585 or $0.625* | $0.655 | | * The IRS raised mileage rates for the final 6 months of 2022, so the
higher rate noted above is effective as of July 1, 2022. |
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| 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.
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| Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2023. |
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