USA Federal Tax Information

FIT (Federal Income Tax)

FICA (Federal Insurance Contributions Act) - SOCIAL SECURITY

Description	Amount	Effective Date
Maximum Taxable Earnings (Social Security Wage Base)	$168,600	Increased from $160,200 in 2023
Maximum Social Security tax for employees	$10,453.20	Increased from $9932.40 in 2023
Tax Rate (Employee & Employer)	6.2%	Unchanged from 2023

FICA (Federal Insurance Contributions Act) - MEDICARE

Description	Amount	Effective Date
Maximum Taxable Earnings (Medicare Wage Base)	No Limit
Tax Rate (Employee & Employer)	1.45%	Unchanged since 2023
Additional Medicare Tax Withholding on Wages > $200,000 (single filers), $250,000 (joint filers) (No Employer matching contribution)	Additional 0.9% (Total 2.35%)

Description

Amount

Effective Date

Maximum Taxable Earnings (Medicare Wage Base)

No Limit

Tax Rate (Employee & Employer)

1.45%

Unchanged since 2023

Additional Medicare Tax Withholding on Wages > $200,000 (single filers), $250,000 (joint filers)

(No Employer matching contribution)

Additional 0.9% (Total 2.35%)

FUTA (Federal Unemployment Tax Act) - EMPLOYER PAID

Description	Amount	Effective Date	Forms
Maximum Taxable Earnings (FUTA Tax Wage Base)	$7,000	Unchanged	Form 940 Employer's Annual Federal Unemployment (FUTA) Tax Return
Percentage of Taxable Wages	6.0%
Maximum Credit	5.4%
Normal Net Tax	0.6%

SUPPLEMENTAL WAGE / BONUS RATES

Includes bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, back pay, retroactive pay increases etc. See Publication 15

Description	Amount	Effective Date
Flat rate withholding method	22%	Unchanged since 2023
Pay over $1 Million	37%	Unchanged since 2023

HEALTH SAVINGS ACCOUNTS

Description	Amount	Effective Date
Self-Only Contribution Limit (Employee & Employer)	$4,150	Increased from $3,850 in 2023
Family Contribution Limit (Employee & Employer)	$8,300	Increased from $7,750 in 2023
Additional contribution of $1,000 is permitted for individuals age 55 and older. Those enrolled in Medicare are not eligible to participate. Catch-up Contribution Limit (Employee & Employer)	$1,000	Unchanged from 2023

Description

Amount

Effective Date

Self-Only Contribution Limit (Employee & Employer)

$4,150

Increased from $3,850 in 2023

Family Contribution Limit (Employee & Employer)

$8,300

Increased from $7,750 in 2023

Additional contribution of $1,000 is permitted for individuals age 55 and older. Those enrolled in Medicare are not eligible to participate.

Catch-up Contribution Limit (Employee & Employer)

$1,000

Unchanged from 2023

RETIREMENT PLANS

Description	Amount	Effective Date
Participant pretax contribution limit for 401(k) and 403(b) plans	$23,000	Increased from $22,500 in 2023
Dollar limitation for catchup contributions for participants age 50 or over in 401(k), 403(b).	$7,500	Unchanged from 2023
Dollar limitation for catchup contributions for participants age 50 or over to a SIMPLE IRA or a SIMPLE 401(k).	$3,500	Unchanged from 2023

NEW HIRE

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

Website	Frequency/ Method	Forms:	Required Data
Federal New Hire laws New Hire Reporting (See specific websites for reporting in each state).	Maximum New Hire Reporting time: Within 20 days from hire or rehire date. The hire date is the first day the employee: performs any services for which they will be paid wages, tips, commissions or any other type of compensation is eligible to earn commissions, for services based solely on commissions. If reporting electronically, must make two monthly transmissions not less than 12 or more than 16 days apart. Note: States are given the option of establishing reporting time frames that may be shorter than 20 days. (See each State). If employer has employees working in more than one state,(a multi-state employer), must submit new hire reports electronically.	I-9 , Employment Eligibility Verification	Each New Hire report must contain seven data elements: Employee name, address, Social Security number (SSN) and date of hire (the date an employee first performs services for pay) Employer name, address associated with (FEIN) and Federal Employer Identification number (FEIN) Although most states require only these seven basic data elements, some states require or request additional data. (See each State).

Website

Frequency/ Method

Forms:

Required Data

Federal New Hire laws

New Hire Reporting

(See specific websites for reporting in each state).

Maximum New Hire Reporting time:

Within 20 days from hire or rehire date. The hire date is the first day the employee: performs any services for which they will be paid wages, tips, commissions or any other type of compensation is eligible to earn commissions, for services based solely on commissions. If reporting electronically, must make two monthly transmissions not less than 12 or more than 16 days apart.

Note: States are given the option of establishing reporting time frames that may be shorter than 20 days. (See each State).

If employer has employees working in more than one state,(a multi-state employer), must submit new hire reports electronically.

I-9 , Employment Eligibility Verification

Each New Hire report must contain seven data elements:

Employee name, address, Social Security number (SSN) and date of hire (the date an employee first performs services for pay)

Employer name, address associated with (FEIN) and Federal Employer Identification number (FEIN)

Although most states require only these seven basic data elements, some states require or request additional data. (See each State).

Depositing Taxes (Employer & Employee contributions) - Due either Monthly or Semi-Weekly.

How to enroll in Electronic Federal Tax Payment System (EFTPS) .

Form W-2 - Wage & Tax Statement (Annual). May file electronically. W2 & W3 forms to be filed with Social Security Administration (SSA) by January 31st.

Disclaimer: This information is for reference only. To ensure accurate set up, we highly recommend that the information is verified with the applicable federal and state/provincial agencies. TimeTrex makes no claims, guarantees, or promises about the accuracy, current status, or completeness of the information provided. In no event shall TimeTrex be liable for any errors or omissions with respect to any resource information.

Last Updated: Dec 2022