Jan 12, 2024
Below are federal payroll tax rates and benefits contribution limits for 2024.
Social Security tax
In 2024, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2023. The Social Security wage base is $168,600 for employers and employees, increasing from $160,200 in 2023. Self-employed people must pay 12.4% on the first $168,600.
Medicare tax
In 2024, the Medicare tax rate for employers and employees is 1.45% of all wages, unchanged from 2023. Self-employed people must pay 2.9% on all net earnings.
Additional Medicare tax
In 2024, the additional Medicare tax remains unchanged at 0.9%. This tax applies to wages and self-employment income over certain thresholds ($200,000 for single filers and $250,000 for joint filers).
401(k) limits
In 2024, the maximum contributions to traditional and safe harbor plans are as follows:
Employees can contribute up to $16,000 to a SIMPLE 401(k) plan, up from $15,500 in 2023.
Health savings account and high-deductible health plan limits
In 2024, the maximum contributions to an HSA are as follows:
In 2024, the limits for an HDHP are as follows:
Flexible spending account limits
In 2024, employees can contribute:
Qualified Small Employer Health Reimbursement Arrangement limits
In 2024, employers with a QSEHRA can reimburse employees for health care expenses as follows:
Commuter benefits limit
In 2024, employees can contribute up to $315 per month for qualified commuter benefits (e.g., mass transit and parking), up from $300 per month in 2023. This limit includes any employer contributions.
Adoption assistance exclusion limit
In 2024, up to $16,810 in employer-sponsored adoption assistance may be excluded from an employee's gross wages, increasing from $15,950 in 2023.
Remember, these are all federal rates and limits. Be sure to check with the necessary agencies for state and local rates.
Note that this is a summary of some very complex provisions. Don't make any assumptions about your situation until you've spoken with a qualified tax professional.
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