- Our Team
February 21, 2023
Below are federal payroll tax rates and benefits contribution limits for 2023.
Social Security tax
In 2023, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2022. The Social Security wage base is $160,200 for employers and employees, increasing from $147,000 in 2022. Self-employed people must pay 12.4% on the first $160,200.
In 2023, the Medicare tax rate for employers and employees is 1.45% of all wages, unchanged from 2022. Self-employed people must pay 2.9% on all net earnings.
Additional Medicare tax
In 2023, the additional Medicare tax remains unchanged at 0.9%. This tax applies to wages and self-employment income over certain thresholds ($200,000 for single filers and $250,000 for joint filers).
In 2023, the maximum contributions are as follows:
Employees can contribute up to $15,500 in 2023, up from $14,000 in 2022,to a SIMPLE 401(k) plan.
HSA and HDHP limits
In 2023, the maximum contributions to a health savings account are as follows:
In 2023, the limits for a high-deductible health plan are as follows:
In 2023, employees can contribute:
In 2022, employers with a qualified small employer health reimbursement arrangement can reimburse employees for health care expenses as follows:
Commuter benefits limit
In 2023, employees can contribute up to $300 per month for qualified commuter benefits (e.g., mass transit and parking), up from $280 per month in 2022.
Adoption assistance exclusion limit
In 2023, up to $15,950 in employer-sponsored adoption assistance may be excluded from an employee’s gross wages, increasing from $14,890 in 2022.
Remember, these are all federal rates and limits. Be sure to check with the necessary agencies for state and local payroll rates. Also, various limits and additional rules may apply. Work with a financial professional for the details.
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