The following rates are reported as of today, January 1, 2018. Expect changes to be frequent and it is recommended that you verify the information provided. We recommend Thomson Reuters Checkpoint Payroll Create-a-Chart resource to stay current — where charts are dynamically updated and are always in sync with current information and editorial explanations.
With the new year comes new rates. The federal rates are already set, but many state rates — especially State Unemployment Insurance (SUI) — are still being updated.
Due to a continuing low consumer price increase, many rates stay the same — however some, like 401(k)s, have had small increases. As of writing this report, the IRS has not extended 1095-C filing deadlines, which remains January 31, 2018 for the employee copies. Keep an eye out for updates as several organizations, such as the APA, have sent letters to the IRS asking for extensions for employers.
Here’s a rundown of the changes in the most commonly used rates and limits at this time.
| FICA wage base (mid-forecast) | |
| Date | Wage |
| 2018 | $128,400 |
| 2019 | $135,500 (estimate) |
| 2020 | $142,200 (est.) |
| 2021 | $148,500 (est.) |
| 2022 | $155,100 (est.) |
| 2023 | $161,700 (est.) |
| 2024 | $168,000 (est.) |
| 2025 | $174,300 (est.) |
| 2026 | $180,900 (est.) |
| Source: https://www.ssa.gov/OACT/TR/2017/tr2017.pdf | |
| 2018 rates | ||
| Item | 2017 | 2018 |
| Social Security | $127,200 | $128,700 |
| – FICA (6.2%) | $7,886.40 | $7,979.40 |
| – Medicare (1.45%) | $200,000 | $200,000 |
| – Medicare (2.35%) | >$200,000 | >$200,000 |
| Domestic worker threshold | $2,000 | $2,100 |
| Elections workers | $1,800 | $1,800 |
| Transit passes / van pool / bike | $255 / $255 / $20 | $260 / $260 / $20 |
| Parking | $255 | $260 |
| 415(b)(1)(A) defined benefit max | $215,000 | $220,000 |
| Max. contribution | $54,000 | $55,000 |
| Education assistance | ||
| Roth Limits (married; single) | $186,000-$196,000; $118,000-$133,000 | $189,000-$199,000; $120,000-$135,000 |
| 401(k) | $18,000 | $18,500 |
| -403(b) – 457 | $18,000 | $18,500 |
| -408(p) Simple | $12,500 | $12,500 |
| 401(k) 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 | $102,100 | $104,100 |
| Minimum annual comp 408 | $600 | $600 |
| Adoption exclusion limits | $13,570 | $13,840 |
| – Phase Out Adjusted Gross Income (AGI) | $203,540 | $207,580 |
| -Total exclusion AGI | $243,540 | $247,580 |
| Definition of control employee / commuting | $215,000 / $105,000 | $220,000 / $110,000 |
| -Corp officer | $105,000 | $110,000 |
| -Earnings test | $215,000 | $220,000 |
| Definition of highly comp. | $120,000 | $120,000 |
| – Key employee top heavy plan | $175,000 | $175,000 |
| – Flexible Spending Account (FSA) | $2,600 | $2,650 |
| Long-term premiums | ||
| -<40 | $410 | $420 |
| -90 | $770 | $780 |
| -10 | $1,530 | $1,560 |
| -130 | $4,090 | $4,160 |
| ->70 | $5,110 | $5,200 |
| Limitations | ||
| – Highly compensated 414 | $120,000 | $120,000 |
| – Annual compensation limits | ||
| – 414, 404, 408 Self-Employee Pension (SEP) | $270,000 | $275,000 |
| – Annual compensation limits | ||
| – 401 Government plans in effect 7/1/93 | $400,000 | $405,000 |
| Health Savings Account (HSA) | ||
| – Annual deduction limit Single/Family | $1,300 / $2,600 | $1,350 / $2,700 |
| – Maximum out of pocket single/family | $6,550 / $13,100 | $6,650 / $13,300 |
| – Maximum annual contribution single/family | $3,400 / $6,750 | $3,450 / $6,900 |
| – Maximum Annual Catch-Up (55 years old) | $1,000 | $1,000 |
| Foreign income exclusions | ||||
| Maximum Foreign Earned | Income Exclusion | Housing Limit | Base Housing | Maximum Foreign Cost Exclusion |
| 2015 | $100,800 | $30,240 | $16,128 | $14,112 |
| 2016 | $101,300 | $30,390 | $16,208 | $14,182 |
| 2017 | $102,100 | $30,630 | $16,336 | $14,294 |
| 2018 | $104,100 | $31,230 | $16,656 | $14,574 |
For more information about payroll tax compliance, see our new Help & How-To Center resource for state-specific info about payroll tax forms, due dates, filing methods, agency information, tax payment details, state ID formats, e-filing notes, new hire reporting requirements — and more!
