Contribution Updates for 2015

Thursday, November 6, 2014

An Update for you on FICA Withholding and 401(k) contribution limits as posted in the Wisconsin PHCC eNewsletter:

Contribution Changes For 2015

For 2015, 401(k) Contribution Limit Rises to $18K 
The IRS has announced its 2015 adjustments for 401(k) and other retirement plans. Employees may contribute up to $18,000 to their 401(k) plans in 2015, with a higher total contribution limit (employer plus employee) of $53,000.

Income Subject to FICA Payroll Tax Increases in 2015 
High-earning employees will find more of their salary subject to Social Security payroll taxes starting on Jan. 1, 2015. Based on the increase in average wages, the maximum amount of earnings subject to the Social Security tax will increase to $118,500 from $117,000 for 2015, the Social Security Administration has announced.