Payroll Updates for 2023

 In Articles

January 06, 2023 |

EMPLOYEE & EMPLOYER WITHHOLDINGS & LIMITATIONS

SOCIAL SECURITY

Rate for both the employee and employer stays the same at 6.2%. The wage base increases from $147,000 to $160,200.

MEDICARE

Rate for both the employee and employers stays the same at 1.45%; also, the withholding tax rate for high-earning employees is still an additional 0.9% for wages paid to an employee over $200,000. This makes the effective Medicare tax rate for high-earning employees 2.35% for wages over $200,000. This does NOT affect the employer rate.

401(k), 403(b) & 457 plans

Limitation for elective deferrals (contribution) for employees who participate increases from $20,500 to $22,500, and the catch-up for participants aged 50 and over is $7,500.

SIMPLE PLAN

Limitation for elective deferrals increases from $14,000 to $15,500, and catch-up for participants aged 50 and over is $3,500.

pa state unemployment wage base

Remains at $10,000 in 2023.

pa state unemployment employee

Increases to 0.0007 in 2023.

 

Other Updates

MILEAGE RATES

  • 65.5¢ per mile for business miles driven in 2023.
  • 22¢ per mile driven for medical or moving purposes in 2023.
  • 14¢ per mile driven in service of charitable organizations in 2023.

hsa CONTRIBUTION LIMITS

Individual increases to $3,850. Family increases to $7,750. Additional catch-up of $1,000 allowed for those 55 and over.

hDHP minimum required deductibles

Limits will increase to $1,500 for individual and $3,000 for family coverage.

out-of-pocket maximum limits FOR HDHP

Limits will increase to $7,500 for individuals and $15,000 for family coverage.

 

FILING DATES

W-2 FILING

Recipient copy due to employee, paper copy A due to Social Security Administration, electronic copy A due to Social Security Administration – ALL DUE January 31, 2023

1099-MISC/1099-NEC FILING

Recipient copy due to subcontractor, paper filing due to IRS, electronic filing due to IRS – ALL DUE January 31, 2023

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