Dollar Limits Adjusted for Inflation in 2024

Each year, many dollar limits affecting payroll are adjusted for inflation. Here are the limits have been announced so far:

1) Social Security Taxable Wage Base (SSTWB) for 2024 will be $168,600, up from the 2023 limit of $160,200.

2) Retirement Plan Contribution Limits for 2024 are as follows:

401(k) Salary Deferrals for employees under age 50 - $23,000 (up from $22,500 in 2023)
401(k) Catch-Up contributions for employees age 50+ - $7,500 (same as 2023)
SIMPLE Plan Salary Deferrals for employees under age 50 - $16,000 (up from $15,500 in 2023)
SIMPLE Plan Catch-Up contributions for employees age 50+ - $3,500 (same as 2023)
IRA contribution limit - $7,000 (up from $6,500 in 2023)
IRA catch up contribution limit for individuals age 50+ - $1,000 (same as 2023)

3) The maximum amounts that can be contributed to a Health Savings Account (HSA) in 2024 are:

Self-only coverage - $$4,150
Family coverage - $8,300
Catch up contributions for age 55+ - $1,000

4) The maximum amount that can be contributed to a Medical Reimbursement Flexible Spending Accounts will be $3,200. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount will be $640.

Chicago, IL - Paid Leave Expansion

Chicago, IL is expanding its Paid Sick Leave ordinance to a Paid Leave and Paid Sick and Safe Leave ordinance effective 1/1/2024. The Paid Sick Leave ordinance accrues one hour for every 40 hours worked for paid sick leave and has no accrual for paid leave. The current ordinance is replaced by the new, expanded ordinance.

In the expanded ordinance:

Employees will accrue one hour of paid sick leave plus one hour of paid leave for every 35 hours worked.
The maximum is 40 hours of paid sick leave and 40 hour of paid leave.
Employees can carryover 16 hours of accrued, unused paid leave, and 80 hours of accrued, unused sick leave to the next year.
Employers can front-load 40 hours of each, paid sick leave and paid leave hours at the beginning of each year.
Accruals begin January 1, 2024 or the first day of a covered employee’s employment.
Covered employee definition has not changed.
Any employee who worked at least 80 hours for an employer in Chicago within any 120-day period.

Minimum Wage Changes Effective January 1, 2024

Get ready for a pivotal shift in the employment landscape as we usher in the New Year! Starting January 1, 2024, changes to minimum wage rates will take effect, impacting businesses across the board. It's crucial to stay informed and prepared for these modifications, ensuring compliance with the latest regulations. In the link below, we break down the upcoming minimum wage adjustments.

Minimum Wage Changes

Tools You Can Use

Electronic Pay Solutions

Employees like to get paid on time. Sometimes that’s harder than it might seem. With delivery issues, severe weather, and wildfires frequently in the news and maybe even your back yard, getting paychecks to employees can be difficult. That’s where electronic payroll solutions like direct deposit and pay cards can be a great solution.

Electronic pay solutions can also save you money. The costs of both printing and delivery are going up, which increases your payroll fees. With direct deposit and pay cards, employees can access their pay stubs and year-end Forms W-2 and 1095 online through the Mize payroll portal.

Read more about the benefits of electronic pay from our Insights blog by clicking here.

Earned Wage Access

Even if employees get paid on time, sometimes that money doesn’t stretch until the next payday. Stuff happens – the washing machine overflows, the car breaks down, or somebody gets sick. Sometimes employees need money sooner than later, but there aren’t a lot of great options. Payday loans, overdrawing their checking account, and incurring credit card debt can chock up high fees. The employer can give a pay advance or loan, but that can put you in a difficult position.

That’s where an Earned Wage Access (EWA) program can help. EWA programs are a new employee benefit that advances employees a certain amount or percentage of their accrued wages. The employee’s next paycheck is automatically reduced by the advanced amount, with no risk or liability to the employer.

For more information about ZayZoon, the EWA program offered through Mize CPAs, click here or visit with your Mize professional.

MizeCPAS .com