RubinBrown's Payroll & Benefits Tax Guide
PAYROLL TAX GUIDE current as of January 7, 2020
2020
Qualified Retirement Plans
Health Savings Accounts (HSAs) Annual Contribution Limits 2020
2020
2019
2019
Individual
$ 3,550 $ 3,500 $ 7,100 $ 7,000 $ 1,000 $ 1,000
Maximum elective deferral to retirement plans [e.g., 401(k), 403(b)]
$ 19,500 $ 19,000
Family
Maximum elective deferral to SIMPLE IRAs
$ 13,500 $ 13,000
Catch-up Contributions
Employers must report contributions to an employee’s HSA on Form W-2, Box 12, Code W
Maximum elective deferral to 457 plans of exempt employers
$ 19,500 $ 19,000
Limit on annual additions to defined contribution plans Minimum mandatory SEP plan participation
$ 57,000 $ 56,000
Dependent Care Benefits
$
600 $
600
2020
2019
Maximum annual compensation taken into account for contributions
$ 285,000 $ 280,000
Married
$ 5,000 $ 5,000 $ 2,500 $ 2,500
Married Filing Separately
Annual benefit limit under defined benefit plans
$ 230,000 $ 225,000
Catch-up Contribution Limits 401(k), 403(b), SEP and 457 plans
2020
2019
$ 6,500 $ 6,000 $ 3,000 $ 3,000
Group-Term Life Insurance Exceeding $50,000 Paid by Employer 5-Year Age Bracket
SIMPLE IRAs
Monthly Cost/$1,000 of Coverage
Under 25 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 69
$ $ $ $ $ $ $ $ $ $ $
0.05 0.06 0.08 0.09 0.10 0.15 0.23 0.43 0.66 1.27 2.06
Social Security & Medicare Tax 2020
2019
OASDI
HI
OASDI
HI
Maximum taxable wages/income
$ 137,700 No Limit $ 132,900 No Limit
Tax Rate Employer
6.2% 1.45%*
6.2% 1.45%*
Employee (<$200,000) Employee (>$200,000) Self-Employ (<$200,000) Self-Employ (>$200,000)
1.45%† 2.35%†
1.45%† 2.35%†
6.2%
6.2%
2.9% 3.8%
2.9% 3.8%
12.4%
12.4%
70 and above
OASDI = Old Age, Survivors and Disability Insurance HI = Medicare Hospital Insurance
Tax-Free Commuting Benefits Per Month 2020
* The employer HI rate is 1.45% on all wages. † The 2019-20 employee HI rate is 1.45% on all wages plus an additional 0.9% on wages over $200,000.
2019
Employee Parking
$ $
270 $ 270 $
265 265
Transit Passes/Van Pools
Federal Unemployment Tax Wage Limit Rate
Max. Credit Deposit Rate
Standard Mileage Rates
$
7,000
6.00%
5.40%
0.60%
2020
2019
Business
57.5¢ 14.0¢ 17.0¢
58.0¢ 14.0¢ 20.0¢
Charitable
Supplemental Wages Withholding Federal Withholding 2020
Medical
2019
Less than $1,000,000
22.0% 37.0%
22.0% 37.0%
Over $1,000,000
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