Rates and Limits


FICA Limits

The 2019 social security wage base is $132,900, up from $128,400 in 2018. The social security tax rate for employees is 6.2% and the employer portion remains the same at 6.2%. The maximum social security tax employees pay in 2019 is $8,239.80 and the employers pay is $8,239.80, both up from $7,960.80 in 2018.


Qualified Transportation Expenses

IRS Section 132(f) limitations on excludable income for transportation fringe benefits that may be excluded from employee's income, federal employment taxes, FIT, FICA and FUTA are:

  • $265.00 for van pools/car pooling /mass transit/bus passes
  • $265.00 for parking

Personal Income Tax

The 2019 standard deduction will be:

  • $12,200 for single taxpayers
  • $24,400 for married taxpayers filing jointly
  • $18,350 for heads of households
The supplemental wage taxation percentage is 22%.


Standard Mileage Rates

The IRS issued documentation giving the optional mileage rates for use in computing the deductible costs of operating an automobile for business and other purposes.

  • Business Mileage Rate – 58 cents per mile
  • Medical Care or Moving Expenses – 20 cents per mile
  • Deduction for Charitable Use of an Automobile – 14 cents per mile

Medicare

There is no limit to the wages subject to the Medicare tax. All covered wages are subject to a 1.45% tax. For employees' wages over $200,000, the tax increases by 0.9% to 2.35%.

 

Adoption

The adoption expense exclusion from employee income in employer-provided qualified adoption program in 2019 is $14,080, increased from $13,840 in 2018.

 

Internal Revenue Code Annual Limits on 401(k) Plan Compensation and Contributions

  • The limit on combined pre-tax and Roth after-tax contributions in 2019 is $19,000, an increase from $18,500 in 2018.
  • The limit on catch-up contributions for individual age 50 or older is $6,000.
  • The limit on total employee plus employer contributions, i.e. “annual additions,” is $56,000 (excluding catch-up contributions).
  • The limit on compensation used for calculating employer match and employer contributions is $280,000 (or $415,000 if first participated in the plan prior to 1/1/96).