As we enter 2024, employers should be aware of updated payroll and benefits limits that may impact their business. Key changes highlighted in the recent document include:
- Higher Social Security and Medicare taxable wage bases of $168,600 and $200,000 respectively. This will increase maximum Social Security withholding to $10,453 for employees earning over the wage base.
- 401(k) and IRA contribution limits have increased to $23,000 and $7,000. Older employees can contribute even more with higher catch-up limits.
- The minimum wage continues climbing in Oregon and Washington, reaching over $19/hour in parts of Seattle. Employers will need to adjust compensation accordingly.
- Paid family leave programs are expanding in Oregon and Washington, with new employee and employer premiums to fund the programs.
Staying up-to-date on payroll limits and requirements is crucial for employers. This information can help businesses plan for any changes to tax withholding, benefits contributions, and employee compensation in 2024.