HR TECH OUTLOOK MAGAZINE: TOP WORKFORCE MANAGEMENT SERVICE COMPANIES

I am truly humbled to have been named one of the top 10 Workforce Management Service Companies for 2024 by HR Tech Outlook Magazine. It is an incredible honor, and I am equally excited and grateful to be nominated again for 2025.

A heartfelt thank you to my amazing clients. Your trust and continued support enable me to do what I love. You are the reason I have work, and it is a privilege to collaborate with each and every one of you.

Looking forward to another year of helping your businesses thrive!

2024 YEAR-END

Don’t wait until it’s too late! To avoid unnecessary W-2 reruns next year, take action now by addressing these key tasks:

1. Verify Employee Information – Double-check that all employee names, Social Security numbers, and addresses are accurate.
2. Review Payroll Data – Ensure all earnings, taxes, and deductions are properly recorded and up to date.
3. Correct Errors Immediately – Resolve any discrepancies or errors in payroll data as soon as they are identified.
4. Communicate with Your Payroll Provider – Stay in touch with your payroll service to ensure all records are ready for W-2 processing.

Taking these steps now will save you time and hassle down the road. Be proactive and stay ahead!

ADP TAX AWARENESS GUIDES

ADP is excited to provide you with access to two comprehensive Tax Awareness Guides. These guides are designed to be valuable resources, helping you confidently navigate your tax responsibilities.

I believe these guides will serve as a helpful aid, offering important insights and practical advice to ensure you're well-prepared and informed throughout the tax season.

Feel free to reach out if you have any questions or need further assistance!

ADP 1:1 MEETINGS

A new feature for 1:1 Meetings is now available for you to activate in ADP Workforce Now.

1:1 Meetings allows for easy scheduling and management of 1:1s between a manager and their employees, so they can create agendas, take notes, set action items, and strengthen their relationships.



Activating this feature will let you set an organization-wide meeting cadence and grant access to manager and employee profiles.

2025 RETIREMENT PLAN CONTRIBUTION LIMITS

2025 401(k) and 403(b) Employee Contribution Limit

The total employee contribution limit to all 401(k) and 403(b) plans for those under 50 will be going up from $23,000 in 2024 to $23,500 in 2025. The catch-up contribution limit will stay the same at $7,500 in 2025, so if you're 50+, your 401(k) employee contribution limit will be $31,000 in 2025. But if you are aged 60-63 by the end of 2025, your catch-up contribution will be $11,250.

2025 401(k)/403(b)/401(a) Total Contribution Limit

The total of all employee and employer contributions per employer will increase from $69,000 in 2024 to $70,000 in 2025 for those under 50. With the catch-up remaining at $7,500, the total contribution for those 50+ will be $77,500. If you're 60-63, that contribution increases to $81,250. Note that the 401(a) limit is separate from the 403(b) limit. So, you could theoretically get $70,000 into each of them.

2025 457(b) Contribution Limit

457(b) contribution limits will increase from $23,000 in 2024 to $23,500 in 2025. 457(b)s have unique catch-up contribution rules, so consult with your plan administrator if you are interested in putting more in your 457(b).

2025 Traditional and Roth IRA Contribution Limits

IRA contribution limits and catch-up contributions will remain the same from 2024. That means you can contribute $7,000 or $8,000 if you're 50 in 2025.

2025 SEP-IRA Contribution Limits

SEP-IRA contribution limits will increase to $70,000 per year for 2025, up from $69,000 in 2024.

2025 SIMPLE IRA and SIMPLE 401(k) Contribution Limits

The SIMPLE IRA and SIMPLE 401(k) contribution limits will increase from $16,000 in 2024 to $16,500 in 2025.

2025 Health Savings Account (HSA) Contribution Limits 

For single people, the HSA contribution limit will increase from $4,150 in 2024 to $4,300 in 2025. Family coverage will increase from $8,300 to $8,550. The $1,000 catch-up contribution for those 55+ remains the same.

2025 Flexible Savings Account (FSA) Contribution Limits

Healthcare FSA contribution limits will increase from $3,200 in 2024 to $3,300 in 2025. Note that there are other types of FSAs (such as dependent care FSAs) with different limits.

Other Interesting Increases

The 401(a) compensation limit (the amount of earned income that can be used to calculate retirement account contributions) will increase from $345,000 in 2024 to $350,000 in 2025. This is always 5X the maximum 401(k) plan total contribution limit.

The deductibility phaseout for IRA contributions for those with a retirement plan at work increases from $77,000-$87,000 in 2024 for singles to $79,000-$89,000 in 2025, and it'll move from $123,000-$143,000 in 2024 for those Married Filing Jointly to $126,000-$146,000 in 2025.

The Roth IRA Direct Contribution Limit phaseout will increase from $146,000-$161,000 in 2024 for singles to $150,000-$165,000 in 2025 and from $230,000-$240,000 for 2024 for those Married Filing Jointly to $236,000-$246,000 in 2025. If your MAGI is above that, you'll need to contribute indirectly via the Backdoor Roth IRA process.

While Social Security benefits increased by 8.7% for 2023, the bumps for 2024 and 2025 were much more modest at 3.2% and 2.57%, respectively.

The definition of a highly compensated employee was $155,000 in 2024. In 2025, that number has increased to $160,000.