2021 Form W2 Box 14 Statement (pdf - 74.1 KB)
The Social Security Administration (SSA) announced that the Social Security wage base will increase in 2024. The wage base will be $168,600.00 beginning with the first payroll of 2024. The maximum contribution will be $10,453.20. The Medicare portion of FICA does not have a wage base or maximum contribution; however, 2024 wages in excess of $200,000 will be subject to an extra 0.9% Medicare tax.
FICA tax that comes out of your check each payday is the social security tax. The FICA tax rate for 2024 is 6.2% for both the employee and employer. The MQFE tax is the Medicare portion and is taxed at the rate of 1.45% of taxable wages and has no maximum.
The premiums you pay through payroll deduction for the first $50,000 of Optional Life Insurance are now treated as pre-tax dollars. This means the deduction reduces your taxable wages before taxes are calculated on the wages. The premiums for coverage over $50,000 will be treated as any other payroll deduction.
The IRS has announced that the limitations on retirement plans for 2024 are as follows:
| 401(K), 457(e), and 403(b) Deferred Limit |
$ 23,000 |
| Age 50+ Catch-up Contributions Limit |
$ 7,500 |
| 457(b) Pre-Retirement Catch-up Limit |
$ 23,000 |
*Annual amount may differ for individual participants in certain cases.
