2015 has seen some important changes come into effect. These are however increases in the form of additional taxes for both employer and employee. But, did you know that it doesn’t just end with the new rates this year it also involved the increase to minimum wage. This is great news for the employees?
There has also been a new Affordable Care Act reporting requirement that has been implemented. It has been effective since January 2015. This act affects those companies that have large head counts like employers that have 50 and more employees to start accumulating health insurance information for each individual. These employers will need to provide each employee with Form 1095-C, and W-2 by January 2016.
New Rates 2015
Here is a rundown of the most commonly used rates and limits in 2015.
| Item | 2014 | 2015 |
| Social SecurityFICA (6.2%)
Medicare (1.45%) Medicare (2.35%) |
$117,000$7,254
$200,000 > $200,000 |
$118,500$7,347
$200,000 >$200,000 |
| Domestic Worker Threshold | $1,900 | $1,900 |
| Elections Workers | $1,600 | $1,600 |
| Transit Passes / Van Pool / Bike | $250/ $250 / $20 | May change ** |
| Parking | $250 | $250 |
| 415(b)(1)(A) Defined Benefit Max | $210,000 | $210,000 |
| Max Contribution | $52,000 | $53,000 |
| Education Assistance | $5,250 | $5,250 |
| Limitations- 401(k)
– 403(b) – 408(p) |
$17,500
$17,500 $12,000 |
$18,000
$18,000 $18,000 |
| 414(v) Catch-Up | $5,500 | $6,000 |
| 414(v) Catch-Up Simple | $2,500 | $3,000 |
| IRA | $5,500-$6,500 > 50 | $5,500-$6,500 > 50 |
| Limitations – Highly Compensated 414 |
$115,000 | $120,000 |
| Annual Compensation Limits- 401 Gvt Plans in Effect 7/1/93 | $385,000 | $395,000 |
| HSA:- Annual Deduction Limit Single / Family
– Maximum Out-of-Pocket Single / Family – Maximum Annual Contribution Single / Family – Maximum Annual Catch-Up (55) |
$1,250 / $2,500$6,350 / $12,700
$3,300 / $6,550 $1,000 |
$1,300 / $2,600
$6,450 / $12,900 $3,350 / $6,650 $1,000 |
| Foreign Income Exclusion | $99,200 | $100,800 |
| Minimum Annual Comp 408 | $550 | $600 |
| Adoption Exclusion Limits Tax Credit- Phase Out AGI
– Total Exclusion AGI |
$13,190$197,880
$237,880 |
$13,400$201,010
$241,010 |
| Definition of Control Employee- Corp Officer
– Earnings Test |
$105,000$105,000
$210,000 |
$105,000$105,000
$215,000 |
| Definition of Highly Comp. | $115,000 | $120,000 |
| Key Employee Top Heavy Plan | $170,000 | $170,000 |
| Long-Term Premiums- < 40
– 40-50 – 50-60 – 60-70 – > 70 |
$370$700
$1,400 $3,720 $4,660 |
$380$710
$1,430 $3,800 $4,750 |
Foreign Income Exclusions
| Maximum Foreign Income Earned | Income Exclusion | Maximum Foreign Cost Exclusion |
| 2014 | $99,200 | $13,888 |
| 2015 | $100,800 | $14,112 |
States that have changes on 2015
| State | 2014 | 2015 |
| Alaska |
Colorado
Florida
Hawaii
Idaho
$11,700
$38,700
$11,800
$7,000
$40,900
$36,000Iowa$26,800$27,300Kansas$8,000$12,000Kentucky$9,600$9,900Massachusetts$14,000$15,000Minnesota$29,000$30,000Montana$29,000$29,500Nevada$27,400$27,800New Jersey$31,500$32,000New York
North Carolina
North Dakota$10,300
$10,500
$21,700
$35,600Oklahoma$18,700$17,000Oregon$35,000$35,700Pennsylvania$8,750$9,000Rhode Island$20,600 / $22,100$21,200 / $22,700South Carolina$12,000$14,000South Dakota$14,000$15,000Utah$30,800$31,300Vermont$16,000$16,400Washington$41,300$42,100Wyoming$24,500$24,700
States with minimum wage changes as of the 1st of January 2915
| State | Minimum Wage |
| Alaska |
Arizona$8.75 eff. 2/24/2015
$8.05Colorado$8.23Connecticut$9.15Delaware$8.25 eff. 6/1/2015District of Columbia$10.50 eff. 7/1/2015Florida$8.05Hawaii$7.75Maryland$8.00Massachusetts$9.00Minnesota$9.00 eff. 8/1/2015Missouri$7.65Montana$8.05Nebraska$8.00Nevada$8.25New Jersey$8.38New York$8.75 eff. 12/31/2014Ohio$8.10Oregon$9.25Rhode Island$9.00South Dakota$8.50Vermont$9.15Virginia$7.25Washington$9.47West Virginia$8.00 eff. 12/31/2014
Helping you understand what’s in your pocket…
Until next time
Let us know what you think