|Nov 03 2015||
2016 Payroll & Tax Changes
By: Donna Kakadeles
There will be no change to the 2015 401k limits or wage base. The limit remains at $18,000 for those under 50 and $24,000 over 50. The wage base will remain at $265,000.00.
There will only be a change to the FAMILY HSA contribution for 2016 = $6,750. The single HSA contribution will remain at $3,350. Participants over 55 may defer an additional $1,000.
Social security limit will remain at $118,500 (6.2% of earnings) and there is no limit for the 1.45% for Medicare.
Effective January 2016, eleven states will increase their minimum wages. The federal minimum wage was last changed in 2009 and many states follow the lead of the federal standard. Other states have implemented aggressive action to account for cost of living, cost of wages and desire for labor market competitiveness that are unique to their states. Many of the minimum wage increases that will be implemented in 2016 are part of a multi-year staggered approach to achieving a minimum wage targets.
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