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2020 Wage and Deferral Limits

2020 Wage and Deferral Limits

Updated 2020 Wage and Deferral Limits have been released, including FICA, Unemployment Tax, Retirement Deferrals and Minimum Wage. Find the updated limits below.


Social Security: $137,700 Wage Limit, Employee withholding rate is 6.20%
Medicare: No wage limits. Employee withholding rates: 1.45% (wages up to $200,000) and 2.35% (wages over $200,000). Employer tax rate on all wages: 1.45%


FUTA: Taxed on the first $7,000 of wages per employee.
SUTA: Taxed on the first $9,000 of wages per employee. (Ohio)


401(k), 403(b), and 457 plans: Deferral limit $19,500 + $6,500 catch-up
SIMPLE 401(k) and IRA plans: Deferral limit $13,500 + $3,000 catch-up
HSA Contribution Limits: Self-Only $3,550 + $1,000 catch-up, Family $7,100 + $1,000 catch-up (Employee + Employer)
*Annual HSA Contribution limits vary by plan type selected (single or family) and need to be reset every year. Employees 55 or older are eligible for HSA catch-up contributions.


The 2020 Minimum Wage is $7.25 per hour (federal minimum wage) for:
• Those employees whose employers gross under $319,000 per year
• Employees under the age of 16

The 2020 Ohio Minimum Wage is as follows, effective January 1, 2020:
• $8.70 per hour for non-tipped employees
• $4.35 per hour for tipped employees (plus tips)


Have additional questions about managing deferral limits and minimum wage? Contact us today.

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