Payroll Updates for 2023
January 06, 2023 |
EMPLOYEE & EMPLOYER WITHHOLDINGS & LIMITATIONS
Rate for both the employee and employer stays the same at 6.2%. The wage base increases from $147,000 to $160,200.
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.
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.
- 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.
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
Recipient copy due to subcontractor, paper filing due to IRS, electronic filing due to IRS – ALL DUE January 31, 2023