Payroll & Benefits Tax Guide

PAYROLL TAX GUIDE current as of January 10, 2019

2019

Qualified Retirement Plans

Health Savings Accounts (HSAs) Annual Contribution Limits 2019

2019

2018

2018

Individual

$ 3,500 $ 3,450 $ 7,000 $ 6,900 $ 1,000 $ 1,000

Maximum elective deferral to retirement plans [e.g., 401(k), 403(b)]

$ 19,000 $ 18,500

Family

Maximum elective deferral to SIMPLE IRAs

$ 13,000 $ 12,500

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

$ 19,000 $ 18,500

Limit on annual additions to defined contribution plans Minimum mandatory SEP plan participation

$ 56,000 $ 55,000

Dependent Care Benefits

$

600 $

600

2019

2018

Maximum annual compensation taken into account for contributions

$ 280,000 $ 275,000

Married

$ 5,000 $ 5,000 $ 2,500 $ 2,500

Married Filing Separately

Annual benefit limit under defined benefit plans

$ 225,000 $ 220,000

Catch-up Contribution Limits 401(k), 403(b), SEP and 457 plans

2019

2018

$ 6,000 $ 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 2019

2018

OASDI

HI

OASDI

HI

Maximum taxable wages/income

$ 132,900 No Limit $ 128,400 No Limit

Tax Rate Employer

6.2% 1.45%*

6.2% 1.45%*

1.45%† 2.35%†

1.45%† 2.35%†

Employee (<$200,000) Employee (>$200,000) Self-Employ (<$200,000) Self-Employ (>$200,000)

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 2019

* The employer HI rate is 1.45% on all wages. † The 2018-19 employee HI rate is 1.45% on all wages plus an additional 0.9% on wages over $200,000.

2018

Employee Parking

$ $

265 $ 265 $

260 260

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%

2019

2018

Business Moving*

58.0¢

54.5¢ 18.0¢ 14.0¢ 18.0¢

0.0¢

Supplemental Wages Withholding Federal Withholding 2019

Charitable

14.0¢ 20.0¢

Medical

2018

Less than $1,000,000

22.0% 37.0%

25.0% 39.6%

* Members of the armed forces on active duty are exception if moving pursuant to military orders.

Over $1,000,000