2024 Wage and Deferral Limits

Updated 2024 Wage and Deferral Limits have been released, including FICA, Unemployment Tax, Retirement Deferrals and Minimum Wage. Find the updated limits below.

FICA

Social Security: $168,600 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%

UNEMPLOYMENT TAXES

FUTA: Taxed on the first $7,000 of wages per employee.
SUTA: The American Payroll Association has provided a chart of State Unemployment Insurance Taxable Wage Bases for 2024, 2023, 2022, and 2021. https://pages.americanpayroll.org/taxable-wage-base 

DEFERRALS

401(k), 403(b), and 457 plans: Deferral limit $23,000 + $7,500 catch-up
SIMPLE 401(k) and IRA plans: Deferral limit $16,000 + $3,500 catch-up
HSA Contribution Limits:

• Self-Only $4,150 + $1,000 catch-up^
• Family $8,300 + $1,000 catch-up^
  (Employee + Employer)

2024 MINIMUM WAGE

The 2024 Federal Minimum Wage is $7.25 per hour

Ohio to Increase Minimum Wage in 2024, increases that go into effect on January 1, 2024

• In Ohio, employers with annual gross receipts of $385,000 or less per year after January 1, 2024 ($371,000 in 2023) must pay no less than the Federal Minimum Wage to their non-tipped employees
• Also in Ohio, employees under the age of 16 must be paid no less than the Federal Minimum Wage rate

For State Minimum Wage changes, as well as rules governing minimum wage, visit the Department of Labor website: https://www.dol.gov/agencies/whd/minimum-wage/state

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