That's why we created a 2014 version of our Tax and Limits Quick Help - your ultimate 2014 guide to payroll taxes, contribution limits, minimum wage and more! There are also a few items on this infographic that we'd like to highlight, including CA minimum wage increase, the additional Medicare taxes on high wage earners and the limits on employee contributions to health-related savings accounts.
California passed House Bill AB10 in September 2013 to approve the state’s first minimum wage increase in six years. California’s minimum wage will increase from $8 per hour to $9 per hour on July 1, 2014. This is close to the proposed Federal Minimum Wage increase to $9 per hour that President Obama asked Congress for in his 2013 State of the Union Address. This minimum wage change must be reflected in approved California minimum wage posters on the first of July.
2014 continues the Medicare surtax, which adds another 0.9 percent to the 1.45 percent Medicare tax on earnings over $200,000. When an employee’s cumulative pay reaches $200,000, employers must increase the amount of Medicare tax they withhold for the remainder of the year.
Because of this Medicare surtax, there are a few important things for wage earners to remember in 2014:
Employee contributions maximums for flexible spending accounts stay the same as 2013 but health savings accounts increase slightly. Individual HSAs increase by $50 to $3,300 and family HSAs increase by $100 to $6,550.
Flexible spending accounts do have one possible change for 2014, as employers can amend their FSA plans to allow employees to carry over $500 of unspent contributions to the following year, instead of losing it.
PAYDAY Workforce Solutions can help you understand 2014 payroll taxes and can provide other payroll-related assistance. Trust us to help you with 401(k) plans, employee benefits, background checks, time and attendance, workers compensation, Federal and state tax credits, benefits administration, HRIS and unemployment claims management. Give us a call or send us a note - we'd be happy to talk with you!
PAYDAY Workforce Solutions provides a single database SAAS solution for Human Capital Management (HCM) including payroll, human resources, time management, benefits administration and onboarding to companies of all sizes and in various industries.
625 The City Drive South, Suite 250
Orange, CA 92868