Government News
2024 Federal Rates
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SSA wage base $168,600
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Employee SS rate 6.2%
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Employer SS rate unchanged 6.2%
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Medicare rate 1.45%
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Medicare rate for wages greater than $200,000 2.35%
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Standard business mileage rate is $0.67 per mile
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Medical or Moving mileage rate $0.21 per mile
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Service of charitable organizations mileage rate $0.14 per mile
2024 RevenuE Fringe Benefit
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Adoption credit-$16,810
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The amount excludable from an employee’s gross income begins to phase out for taxpayers with an adjusted gross income of $239,230 and is completely phased out for taxpayers with an adjusted gross income of $279,230.
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Health FSA Limit - $2,750 (Max carryover amount is $640)
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Parking - $315.00
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Commuter Highway vehicle & Transit Passes - $315.00
- Medical Savings Accounts
- High Deductible
- Individual - $2,800-$4,150 (non-embedded), $3,200-$4,150 (embedded)
- Family - $5,550-$8,350 (non-embedded), $6,400-$8,350 (embedded)
- Maximum Out-of-Pocket
- Individual coverage - $8,050 (embedded/non-embedded)
- Family - $9,450 (non-embedded), $16,100 (embedded)
- High Deductible
- Long-term care insurance benefits
- Amount excluded from income capped at $410 per day
- Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) - For 2024, a qualified small employer health reimbursement arrangement (QSEHRA) is an arrangement that, among other requirements, makes payments and reimbursements for qualifying medical care expenses or family members
- Do not exceed $6,150 for self-only coverage
- Do not exceed $12,450 for family coverage
Pension Plan, Deferral Limits Announced for 2024
IRS announced the 2024 Pension Limits. See the list below.
Traditional and Roth IRA contributions - $7,000
Traditional and Roth IRA catch-up contributions - $1,000
Annual additions under IRC Sec. 415(c)(1)(A) for defined contribution plans: $69,000
Annual additions under IRC Sec. 415(b)(1)(A) for defined benefit pension plans: $275,000
Annual IRC Sec. 402(g) deferral limit for 401(k), 403(b) and 457(b) plans: $23,000
Catch-up contributions to 401(k), 403(b) and 457(b) plans: $7,500
Annual deferral limit for SIMPLE IRA and SIMPLE 401(k) plans: $16,000
Catch-up contributions for SIMPLE IRA and SIMPLE 401(k) plans: $3,500
Annual IRC Sec. 408(k)(2)(C) deferral limit for SEPs plans: 1. 25% of employee's compensation, or 2. $69,000
IRC Sec. 401(a)(17) compensation cap: $345,000
Highly compensated employee definition income threshold: $155,000
Top-heavy determination key employee definition income threshold: $220,000
SEP plan minimum annual employee income threshold for benefit eligibility: $750
For more information please visit the IRS [Notice 2023-75, 11-01-23].
2024 FUTA Credit Reduction States
For tax year 2023, California, New York, and the U.S. Virgin Islands are the states/territories subject to the FUTA credit reduction. This means the employers in these states will be required to pay additional FUTA taxes in the 4th quarter FUTA tax deposit due no later than January 31, 2024.
The reasons why the employers are subject to this tax are due to the states/territories being unable to pay back the outstanding federal unemployment loans by November 10, 2023. Below is a listing of the FUTA credit reductions and rates for these states/territories.
|
State/Territory |
2023 Credit Reduction |
2023 FUTA Rate |
|
Virgin Islands |
3.9% |
4.5% |
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California |
0.6% |
1.2% |
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New York |
0.6% |
1.2% |
State Updates
The following states below have announced their 2024 Wage Base Limits. (AS OF 1/11/2024)
| State | 2024 Wage Base | State | 2024 Wage Base | |
| ALABAMA | 8,000 | MISSISSIPPI | 14,000 | |
| ALASKA | 49,700 | MISSOURI | 10,000 | |
| ARIZONA | 8,000 | MONTANA | 43,000 | |
| ARKANSAS | 7,000 | NEBRASKA | 9,000-24,000** | |
| CALIFORNIA | 7,000 | NEVADA | 40,600 | |
| COLORADO | 23,800 | NEW HAMPSHIRE | 14,000 | |
| CONNECTICUT | 25,000 | NEW JERSEY | 42,300 | |
| DELAWARE | 10,500 | NEW MEXICO | 30,100 | |
| DISTRICT OF COLUMBIA | 9,000 | NEW YORK | 12,500 | |
| FLORIDA | 7,000 | NORTH CAROLINA | 29,600 | |
| GEORGIA | 9,500 | NORTH DAKOTA | 40,800 | |
| HAWAII | 56,700* | OHIO | 9,000 | |
| IDAHO | 49,900 | OKLAHOMA | 27,000 | |
| ILLINOIS | 13,271 | OREGON | 50,900 | |
| INDIANA | 9,500 | PENNSYLVANIA | 10,000 | |
| IOWA | 38,200 | RHODE ISLAND | 29,700*** | |
| KANSAS | 14,000 | SOUTH CAROLINA | 14,000 | |
| KENTUCKY | 11,400 | SOUTH DAKOTA | 15,000 | |
| LOUISIANA | 7,700 | TENNESSEE | 7,000 | |
| MAINE | 12,000 | TEXAS | 9,000 | |
| MARYLAND | 8,500 | UTAH | 44,800 | |
| MASSACHUSETTS | 15,000 | VERMONT | 14,300 | |
| MICHIGAN | 9,500 | VIRGINIA | 8,000 | |
| MINNESOTA | 42,000 | WASHINGTON | 68,500 | |
| MASSACHUSETTS | 15,000 | WEST VIRGINIA | 9,000 | |
| MICHIGAN | 9,500 | WISCONSIN | 14,000 | |
| MINNESOTA | 42,000 | WYOMING | 30,900 |
*Hawaii enacted an Unemployment Insurance Technology Special Fund Tax of 0.01% for all employers.
**Under Nebraska's Employment Security Law, a determination of liability or combined tax rate will be given to the employer's last known address or the address.
***Rhode Island's wage base is $29,700 for employers with the highest SUTA rate and $28,200 for all other employers.
Forms & Publications
Publication 15 (Circular E), Employer's Tax Guide
Publication 15-A Employer's Supplemental Tax Guide
Publication 15-B Employer's Tax Guide to Fringe Benefits
Publication 15-T Federal Income Tax Withholding Methods
Resource Links
Federal Office of Child Support Enforcement
National Archive & Records Administration
Society for Human Resource Management (SHRM)
State New Hire Reporting Websites
VA-4 Employee's Withholding Exemption Certificate
Virginia Statewide Payroll Conference
US Dept of Health & Human Services
Resource Material
Wolters Kluwer CCH Payroll Management Guide
Virginia Statewide Payroll conference Affiliated Payrollorg Chapters
Southwest Virginia Chapter of the APA
Charles Town West Virginia Chapter
