Federal tax rates have changed.
The Social Security Administration (SSA) has announced the 2024 wage base will be $168,600, up $8,400 from $160,200 in 2023.
The 7.65% combined rate for Social Security and Medicare remains unchanged for 2024. The Social Security portion of Old-Age, Survivors and Disability insurance (OASDI) is 6.2% on earnings up to the applicable taxable maximum amount. The Medicare porting is 1.45% of all earnings.
Also, as of January 2024, individuals with earned income of more than $200,000 ($250,000 for couples filing jointly) pay an additional 0.9% in Medicare taxes. Employers are not required to pay a matching 0.9% portion of the additional Medicare tax.
You can find the SSA Fact Sheet regarding the 2024 Social Security changes at https://www.ssa.gov/cola/
Mileage rates are $0.67 per mile for business use.
Retirement Changes 2024
- 401k Deferral Limit increases from $22,500 to $23,000
- If you are over 50 years old the limit increases to $30,500
- Simple IRA Limit increases from $15,500 to $16,000
- If you are over 50 years old the limit increases to $19,500
- Traditional and Roth IRA limits increase from $6,500 to $7,000
- If you are over 50 years old the limit increases to $8,000
Reminder – Federal and State Unemployment taxes start again in 2024 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 Payroll Service Solutions to handle your payroll needs.
2024 Announced Minimum Wage Changes
There are numerous changes coming to minimum wages in 2024. Pennsylvania is among the states which DOES NOT have a change coming to the minimum wage. New Jersey and Delaware, on the other hand, both have changes to the minimum wage coming for 2024. Click the link below to see a full table of minimum wage requirements broken down by state.