Tax & Accounting Blog

New Rates in 2016

CS Professional Suite Payroll Solutions, Payroll December 23, 2015

The new year rings in new rates, as well as new ACA reporting requirements.

Keep in mind that January 2016 brings ACA reporting for ALEs—therefore, all ALE employers will have to provide every employee with a Form 1095-C by January 31, 2016.

Due to a low consumer price increase this year, many rates stay the same. However, there will be some important changes. Here’s a rundown of the changes in the most commonly used rates and limits.

State Minimum Wage Changes*

State 2016
California $10.00
Connecticut $9.60
DC $11.50 eff. 7/1/16
Hawaii $8.50
Maryland $8.75
Massachusetts $10.00
Michigan $8.50
Nebraska $9.00
New York $9.00
Rhode Island $9.60
South Dakota $8.55
Vermont $9.60
West Virginia 8.75

*Only states with changes for 2016 are shown. All are effective 1/1/2016 except as noted.

State Unemployment Insurance Wage Base Changes*

State 2016
Colorado $12,200
Iowa $28,300
Kansas $14,000
Kentucky $10,200
Minnesota $31,000
Montana $30,500
Nevada $28,200
New Jersey $32,600
New York $10,700
North Carolina $22,300
Oklahoma $17,500
Pennsylvania $9,500
Vermont $16,800
Washington $44,000

*Only states with changes for 2016 are shown.

2016 Rates

Item
2015
2016
Social Security
$118,500
$118,500
 – FICA (6.2%)
$7,347.00
$7,347.00
 – Medicare (1.45%)
$200,000
$200,000
 – Medicare (2.35%)
 > $200,000
 > $200,000
Domestic Worker Threshold
$1,900
$2,000
Elections Workers
$1,600
$1,700
Transit Passes / Van Pool / Bike
$130 / $130 / $20
$130 / $130 / $20
Parking
$250
$255
415(b)(1)(A) Defined Benefit Max
$215,000
$215,000
Max Contribution
$53,000
$53,000
Education Assistance
$5,250
not released
Roth Limits
$183,000-$193,000 MAGI (joint)
$184,000-$194,000
 – 401(k)
$18,000
$18,000
 – 403(b)
$18,000
$18,000
 – 408(p)
$12,500
$12,500
414(v) Catch-Up
$6,000
$6,000
414(v) Catch-Up Simple
$3,000
$3,000
IRA
$5,500-6,500 < 50
$5,500-$6,500 > 50
Foreign Income Exclusion
$100,800
$101,300
Minimum Annual Comp 408
$600
$600
Adoption Exclusion Limits Tax Credit
$13,400
$13,460
 – Phase Out AGI
$201,010
$201,920
 – Total Exclusion AGI
$241,010
$241,920
Definition of Control Employee
$215,000 / $105,000
$215,000 / $105,000
 – Corp Officer
$105,000
$105,000
 – Earnings Test
$210,000
$210,000
Definition of Highly Comp.
$120,000
$120,000
 – Key Employee Top Heavy Plan
$170,000
$170,000
 – FSA
$2,550
$2,550
Long-Term Premiums
 – < 40
$380
$380
 – 40-50
$710
$710
 – 50-60
$1,430
$1,430
 – 60-70
$3,800
$3,800
 – > 70
$4,750
$4,750
Limitations
 – Highly Compensated 414
$120,000
$120,000
 – Annual Compensation Limits
 – 414, 404, 408 SEP
$265,000
$265,000
 – Annual Compensation Limits
 – 401 GVT plans in effect 7/1/93
$395,000
$395,000
 – FSA
$2,550
$2,550
HSA
 – Annual Deduction Limit Single/Family
$1,300 / $,2600
$1,300 / $2,600
 – Maximum Out-of-Pocket Single/Family
$6,450 / $12,900
$6,550 / $13,100
 – Maximum Annual Contribution Single/Family
$3,350 / $6,650
$3,350 / $6,750
 – Maximum Annual Catch-Up (55)
$1,000
$1,000

 

Foreign Income Exclusions

Maximum Foreign Earned
Income Exclusion
Housing Limit
Base Housing
Max Foreign Cost Exclusion
2013
$97,600
$29,280
$15,616
$13,664
2014
$99,200
$29,760
$15,872
$13,888
2015
$100,800
$30,240
$16,128
$14,112
2016
$101,300
N/A
N/A
N/A