By Rebecca Clemmer, Payroll Specialist
2024 Year End Reminders
Reporting of Fringe Benefits
If you have any fringe benefits that you’ve given your employees in 2024, they need to be included on their W-2’s. There are several items that qualify as fringe benefits. Below is a list of common items that you need to report, however this list is not all inclusive:
- Health Insurance premiums you paid on behalf of a greater than 2% shareholder if you are an S Corporation
- Personal Use of Company Car
- Value of Group Term Life Insurance in excess of $50,000
- Employer Health Savings Account Contributions
- List of Retirement Plan Participants including Employer only contributions
- Cash and Non-cash gifts given to employees, regardless of amount
These are only a few of the items that need to be included on the W-2’s.
Changes for 2025
2025 FICA Changes
The Social Security Wage Base is increasing to $176,100, therefore the maximum Social Security tax employees and employers will contribute is $10,918.20 each. Medicare continues to have no wage base limit. However, when an employee earns over $200,000, they will be subject to an extra .09% Medicare Tax. The employers do not match this portion of the Medicare tax.
Retirement Contribution Limits for 2025
401(k)
403(b)
Catch-up Contributions for 50 to 59 years old
Catch-up Contributions for 60 to 63 years old
Catch-up Contributions for 64 and older
Simple IRA or 401(k)
Catch-up Contributions for 50 to 59 years old
Catch-up Contributions for 60 to 63 years old
Catch-up Contributions for 64 and older
Health Savings Account Limits for 2025
Self-only Coverage
Family Coverage
Catch-up Contributions for over 55 years old
Health Flexible Spending Accounts
$23,500
$23,500
$7,500
$11,250
$7,500
$16,500
$3,500
$5,250
$3,500
$4,300
$8,550
$1,000
$3,300
We hope this information will help you prepare for a productive and prosperous 2025. As always, you can contact DH Payroll at payroll@detweilerhershey.com for all of your payroll related issues.