Below are federal payroll tax rates and benefits contribution limits for 2024.
Social Security Tax
In 2024, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2023. The Social Security wage base is $168,600 for employers and employees, increasing from $160,200 in 2023. Self-employed people must pay 12.4% on the first $168,600.
Medicare Tax
In 2024, the Medicare tax rate for employers and employees is 1.45% of all wages, unchanged from 2023. Self-employed people must pay 2.9% on all net earnings.
Additional Medicare Tax
In 2024, the additional Medicare tax remains unchanged at 0.9%. This tax applies to wages and self-employment income over certain thresholds ($200,000 for single filers and $250,000 for joint filers).
401(k) Limits
In 2024, the maximum contributions to traditional and safe harbor plans are as follows:
- Employee (age 49 or younger): $23,000, up from $22,500 in 2023.
- Employee catch-up (age 50 or older): $7,500, unchanged from 2023.
- Employee and employer (age 49 or younger): $69,000, up from $66,000 in 2023.
- Employee and employer (age 50 or older): $76,500, up from $73,500 in 2023.
Employees can contribute up to $16,000 to a SIMPLE 401(k) plan, up from $15,500 in 2023.
Health Savings Account and High-Deductible Health Plan Limits
In 2024, the maximum contributions to an HSA are as follows:
- Employer and employee: $4,150 (self only) and $8,300 (family).
- Catch-up amount (age 55 or older): $1,000.
In 2024, the limits for an HDHP are as follows:
- Minimum deductibles: $1,600 (self only) and $3,200 (family).
- Maximum out-of-pocket amounts: $8,050 (self only) and $16,100 (family).
Flexible Spending Account Limits
In 2024, employees can contribute:
- Up to $3,200 to a health care FSA, increasing from $3,050 in 2023.
- Up to $5,000 to a dependent care FSA if filing single or jointly and up to $2,500 if married but filing separately.
Qualified Small Employer Health Reimbursement Arrangement limits
In 2024, employers with a QSEHRA can reimburse employees for healthcare expenses as follows:
- $6,150 (self-only), up from $5,850 in 2023.
- $12,450 (family), up from $11,800 in 2023.
Commuter Benefits Limit
In 2024, employees can contribute up to $315 per month for qualified commuter benefits (e.g., mass transit and parking), up from $300 per month in 2023. This limit includes any employer contributions.
Adoption Assistance Exclusion Limit
In 2024, up to $16,810 in employer-sponsored adoption assistance may be excluded from an employee’s gross wages, increasing from $15,950 in 2023.
Remember, these are all federal rates and limits. Be sure to check with the necessary agencies for state and local rates.
Note that this is a summary of some very complex provisions. Don’t make any assumptions about your situation until you’ve spoken with us.