Prepare now for the following payroll changes that will take effect on January 1, 2019, and also consider some actions to take before year-end.
Michigan Minimum Wage and Earned Sick Leave Act.
Social Security Wage Base. The 2019 wage base will be $132,900. The employee and employer match will be 6.2%. The maximum deduction will
be $8,239.80 ($132,900 x 6.2%).
Dependent Care Limits. The maximum exclusion from gross income under a dependent care program is $5,000 for an individual or a married couple filing jointly.
Health Flexible Spending Arrangements. The dollar limitation on voluntary employee salary reductions for contributions to a health flexible spending arrangement (FSA) is $2,700.
Health Savings Accounts. HSAs are for eligible individuals in a high deductible health plan. The maximum annual contribution that can
be made to an HSA in 2019:
Individual: $3,500
Family: $7,000
Catch-up contributions: Individuals 55 and older can make additional catch-up contributions to an HSA until they are enrolled in Medicare. The additional
allowable contribution is $1,000.
IRA Contribution Limits. The 2019 contribution limit for Simple IRAs is $13,000. The catch-up contribution for those age 50 or older by December 31, 2019, is $3,000.
401(k), 403(b) and 457 Contribution Limits. The contribution limit for these plans’ employee deferrals is $19,000. The catch-up contribution for those age 50 or older by December 31, 2019, is $6,000.
