Payroll Updates for 2024
EMPLOYEE & EMPLOYER WITHHOLDINGS & LIMITATIONS FOR 2024
SOCIAL SECURITY
Rate for both the employee and employer stays the same at 6.2%. The wage base increases from $160,200 to $168,600.
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 $22,500 to $23,000, and the catch-up for participants aged 50 and over is $7,500.
SIMPLE PLAN
Limitation for elective deferrals increases from $15,500 to $16,000, and catch-up for participants aged 50 and over is $3,500.
PA state unemployment wage base
Remains at $10,000 in 2024.
PA state unemployment employee
Remains at 0.0007 in 2024.
Other Updates for 2024
MILEAGE RATES
- $0.67 per mile for business miles driven in 2024.
- $0.21 per mile for medical or moving purposes in 2024.
- $0.14 per mile driven in service of charitable organizations in 2024.
hsa CONTRIBUTION LIMITS
Individual increases to $4,150. Family increases to $8,300. Additional catch-up of $1,000 allowed for those 55 and over.
hDHP minimum required deductibles
Limits will increase to $1,600 for individual and $3,200 for family coverage.
out-of-pocket maximum limits FOR HDHP
Limits will increase to $8,050 for individuals and $16,100 for family coverage.
FILING DATES
New for This Year
The e-filing requirement for information returns this filing season has been significantly reduced from 250 to 10. This means a business that files 10 or more forms 1099s, W-2s and other information returns this year (in total) must file them electronically to be compliant with the requirements.
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, 2024.
1099-MISC/1099-NEC FILING
Recipient copy due to subcontractor, paper filing due to IRS, electronic filing due to IRS – ALL DUE January 31, 2024.
