Payroll
New Minimum Wage Rates for Many States in 2016
The new year rings in new minimum wage rates, as well as new ACA reporting requirements. Keep in mind that January 2016 brings ACA reporting for ALEs—therefore, all ALE employers will have to provide every employee with a Form 1095-C by January 31, 2016.
Jan. 07, 2016
The new year rings in new minimum wage rates, as well as new ACA reporting requirements. Keep in mind that January 2016 brings ACA reporting for ALEs—therefore, all ALE employers will have to provide every employee with a Form 1095-C by January 31, 2016.
Due to a low consumer price increase this year, many rates stay the same. However, there will be some important changes. Here’s a rundown of the changes in the most commonly used rates and limits.
State Minimum Wage Changes*
| State | 2016 |
| California | $10.00 |
| Connecticut | $9.60 |
| DC | $11.50 eff. 7/1/16 |
| Hawaii | $8.50 |
| Maryland | $8.75 |
| Massachusetts | $10.00 |
| Michigan | $8.50 |
| Nebraska | $9.00 |
| New York | $9.00 |
| Rhode Island | $9.60 |
| South Dakota | $8.55 |
| Vermont | $9.60 |
| West Virginia | 8.75 |
*Only states with changes for 2016 are shown. All are effective 1/1/2016 except as noted.
State Unemployment Insurance Wage Base Changes*
| State | 2016 |
| Colorado | $12,200 |
| Iowa | $28,300 |
| Kansas | $14,000 |
| Kentucky | $10,200 |
| Minnesota | $31,000 |
| Montana | $30,500 |
| Nevada | $28,200 |
| New Jersey | $32,600 |
| New York | $10,700 |
| North Carolina | $22,300 |
| Oklahoma | $17,500 |
| Pennsylvania | $9,500 |
| Vermont | $16,800 |
| Washington | $44,000 |
*Only states with changes for 2016 are shown.
2016 Rates
|
Item
|
2015
|
2016
|
| Social Security |
$118,500
|
$118,500
|
| – FICA (6.2%) |
$7,347.00
|
$7,347.00
|
| – Medicare (1.45%) |
$200,000
|
$200,000
|
| – Medicare (2.35%) |
> $200,000
|
> $200,000
|
| Domestic Worker Threshold |
$1,900
|
$2,000
|
| Elections Workers |
$1,600
|
$1,700
|
| Transit Passes / Van Pool / Bike |
$130 / $130 / $20
|
$130 / $130 / $20
|
| Parking |
$250
|
$255
|
| 415(b)(1)(A) Defined Benefit Max |
$215,000
|
$215,000
|
| Max Contribution |
$53,000
|
$53,000
|
| Education Assistance |
$5,250
|
not released
|
| Roth Limits |
$183,000-$193,000 MAGI (joint)
|
$184,000-$194,000
|
| – 401(k) |
$18,000
|
$18,000
|
| – 403(b) |
$18,000
|
$18,000
|
| – 408(p) |
$12,500
|
$12,500
|
| 414(v) 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 |
$100,800
|
$101,300
|
| Minimum Annual Comp 408 |
$600
|
$600
|
| Adoption Exclusion Limits Tax Credit |
$13,400
|
$13,460
|
| – Phase Out AGI |
$201,010
|
$201,920
|
| – Total Exclusion AGI |
$241,010
|
$241,920
|
| Definition of Control Employee |
$215,000 / $105,000
|
$215,000 / $105,000
|
| – Corp Officer |
$105,000
|
$105,000
|
| – Earnings Test |
$210,000
|
$210,000
|
| Definition of Highly Comp. |
$120,000
|
$120,000
|
| – Key Employee Top Heavy Plan |
$170,000
|
$170,000
|
| – FSA |
$2,550
|
$2,550
|
| Long-Term Premiums | ||
| – < 40 |
$380
|
$380
|
| – 40-50 |
$710
|
$710
|
| – 50-60 |
$1,430
|
$1,430
|
| – 60-70 |
$3,800
|
$3,800
|
| – > 70 |
$4,750
|
$4,750
|
| Limitations | ||
| – Highly Compensated 414 |
$120,000
|
$120,000
|
| – Annual Compensation Limits | ||
| – 414, 404, 408 SEP |
$265,000
|
$265,000
|
| – Annual Compensation Limits | ||
| – 401 GVT plans in effect 7/1/93 |
$395,000
|
$395,000
|
| – FSA |
$2,550
|
$2,550
|
| HSA | ||
| – Annual Deduction Limit Single/Family |
$1,300 / $,2600
|
$1,300 / $2,600
|
| – Maximum Out-of-Pocket Single/Family |
$6,450 / $12,900
|
$6,550 / $13,100
|
| – Maximum Annual Contribution Single/Family |
$3,350 / $6,650
|
$3,350 / $6,750
|
| – Maximum Annual Catch-Up (55) |
$1,000
|
$1,000
|
Foreign Income Exclusions
|
Maximum Foreign Earned
|
Income Exclusion
|
Housing Limit
|
Base Housing
|
Max Foreign Cost Exclusion
|
| 2013 |
$97,600
|
$29,280
|
$15,616
|
$13,664
|
| 2014 |
$99,200
|
$29,760
|
$15,872
|
$13,888
|
| 2015 |
$100,800
|
$30,240
|
$16,128
|
$14,112
|
| 2016 |
$101,300
|
N/A
|
N/A
|
N/A
|