• 401k Deferral Limit increases from $23,000 to $23,500
  • If you are 50-59 years old the limit increases to $31,000
  • If you are 60-63, the new SECURE Act 2.0 allows the limit to be increased to $34,750
• Simple IRA Limit increases from $16,000 to $16,500
  • If you are 50-59 years old the limit increases to $20,000
  • If you are 60-63, the new SECURE Act 2.0 allows the limit to be increased to $21,750
• Traditional and Roth IRA limits remain unchanged at $7,000
  • If you are 50-59 years old the limit remains unchanged at $8,000

• The Social Security Administration (SSA) has announced the 2025 wage base will be $176,100 (up $7,500 from $168,600 in 2024).
• The 7.65% combined rate for Social Security and Medicare remains unchanged for 2025. The Social Security portion of the Old-Age, Survivors and Disability Insurance (OASDI) is 6.2% on earnings up to the applicable taxable maximum amount. The Medicare portion is 1.45% of all earnings.
• You can find the SSA Fact Sheet regarding the 2025 Social Security changes at https://www.ssa.gov/cola

REMINDER – Federal and State Unemployment taxes start again in 2025 until the limits are reached for each employee.

Please note that the information provided here is for your convenience and may be subject to change. It is important to clarify that this information does not constitute legal or tax guidance. If you have any questions or concerns that go beyond the realm of our payroll services, we highly recommend consulting a qualified CPA, tax attorney or tax advisor. Thank you for choosing PSS to handle your payroll needs.