Tax Updates for 2019

Jacob Mann 12.28.18
Money Matters

Your guide to 2019 tax changes.

As we move into the new year and leave 2018 behind, it’s important to know about upcoming changes to tax laws. Fear not; as always, we’ve got your back. Here are the changes at a glance:

  • Social Security wage base: First $132,900 of wages 
  • FICA – Social Security (OASDI): 6.2%, up to the wage base 
  • FICA – Medicare: 1.45% up to $200,000, then 2.35%

    (additional 0.9% paid by the employee only) 

  • 401(k) maximum deferral: $19,000 
  • HSA contribution limit: $3,500 individual, $7,000 family 
  • FSA contribution limit: $2,700 FSA and LPFSA, $5,000 DCA

    (Was $2,650, $5,000) 

  • Federal minimum wage: $7.25, use state wage if higher 
  • SUTA wage base: Click for state-by-state guide 
  • FUTA wage base: First $7,000 of wages in 2019

You’ll need to consult with your financial advisor to find out what these changes will mean for you and your company. Here’s a breakdown of a few notable changes:

  • The social security wage base has increased by $4,500 in 2019, up from $128,400 in 2018.
  • The 401(k) maximum deferral is $500 higher in 2019, up from the $18,500 in 2018.
  • The 2019 HSA contribution limit is now $50 higher for an individual and $100 higher for a family. This has increased a bit, up from $3,450 and $6,900 in 2018, respectively.
  • You will also see contribution limits increased by $50 for your FSA, up from $2,650 in 2018.

For minimum wage, be sure to check your state guide, and while you’re there, check to see if the SUTA wage base has changed for your state, too.

If you have any questions, please reach out to us at Nextep, and we’ll help you make sense of the chaos. 

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