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.