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Home / Press Room / Important Year-End Tax & Wage Updates

As 2023 ends, we are preparing for the new year with an eye on the ever-changing industry landscape. One thing that can help your staffing company be prepared for 2024 is to be up to date on important changes to wage and tax laws.

We’ve assembled a list of the top wage and tax changes for 2024. From minimum wage increases, to Federal tax changes, to Earned Income tax credit notice requirements and more, we’ve collected the information you need to face 2024 with confidence.

Earned Income Tax Credit Notice Information:

There are seven states that require employers to provide some additional notification to their employees about their possible eligibility for Earned Income Tax Credit. The following states allow employers to use Federal Notice 797:

  • California
  • Illinois
  • Louisiana
  • Texas

The following states require the use of a state-specified form:

  • New Jersey
  • Virginia
  • Maryland
  • Oregon

Once these documents are updated for the current year, they will be available on TRICOM’s website under: https://www.tricom.com/news-resources/resources-heading/tax-tools.html.

Please contact your TRICOM Accounting representatives if you have any questions.
 

Minimum Wage Increases: -

The chart below indicates which states are initiating minimum wage changes for 2024

2024 Wage Changes
STATE 2024 2023 Change
Arizona $14.35 $13.85 $0.50
California 16.00 15.50 0.50
Colorado 14.42 13.65 0.77
Connecticut 15.69 15.00 0.69
Maine 14.15 13.80 0.35
Michigan 10.35 10.10 0.25
Minnesota-1 10.85 10.59 0.26
Montana 10.30 9.95 0.35
New Jersey 15.13 14.13 1.00
South Dakota 11.20 10.80 0.40
Vermont 13.67 13.18 0.49

1 - Rate listed for large employers (annual sales of $500,00 or more) small employers have minimum wage of $8.85
 

2024 Unemployment Wage Bases:

Taxable Wage Base for 2024

STATE WAGE BASE STATE WAGE BASE
Alabama $8,000 Nebraska 9,000
Alaska 48,600 Nevada 40,600
Arizona 8,000 New Hampshire 14,000
Arkansas 7,000 New Jersey 42,300
California 7,000 New Mexico 31,500
Colorado 23,800 New York 12,500
Connecticut 25,000 North Carolina 31,400
Delaware 10,500 North Dakota 43,200
District of Columbia 9,000 Ohio 9,000
Florida 7,000 Oklahoma 27,000
Georgia 9,500 Oregon 52,800
Hawaii 61,800 Pennsylvania 10,000
Idaho 53,500 Puerto Rico 7,000
Illinois 13,590 Rhode Island (Tier 1) 31,800
Indiana 9,500 Rhode Island (Tier 2) 33,300
Iowa 38,200 South Carolina 14,000
Kansas 14,000 South Dakota 15,000
Kentucky 11,400 Tennessee 7,000
Lousiana 7,700 Texas 9,000
Maine 12,000 Utah 48,000
Maryland 8,500 Vermont 14,300
Massachusetts 15,000 Virgin Islands
Michigan 9,500 Virginia 8,000
Minnesota 42,000 Washington 68,500
Mississippi 14,000 West Virginia 9,521
Missouri 10,000 Wisconsin 14,000
Montana 43,000 Wyoming 30,900
SS LIMIT 168,600

 

  • Yellow highlighted areas indicate those states that have not yet released their wage bases. This information will also be listed on TRICOM.com and updated as information becomes available.
  • Green highlighted areas indicate a lower amount than 2023

 

FUTA Reduction States:

For tax year 2023, there are two states and the Virgin Islands that will have FUTA reduction charges for 2023 and potentially 2024. The FUTA rates for 2023 for California and New York will be increased by .03% to 1.2%. If the federal loans are not repaid by 11/10/2024, the 2024 rate will increase by another .03% to 1.5%. TRICOM will be monitoring these loans and will update our clients as the 2024 progresses. TRICOM has withheld the extra FUTA funds for most of 2023 already; there may be only small amounts owed for the FUTA change for 2023.

State Tax Table Changes:

The following states have changed their tax tables for 2024 (please note other states may be added to this list):

  • Arizona
  • California
  • Kentucky
  • Maine
  • Montana
  • South Carolina

Federal Tax Changes:

  • Social Security Wage Limit has increased from $160,200 to $168,600.  This is an increase for both the employee and the employer of $520.80. The additional .9% Medicare tax on employee wages over $200,000 is still in place for 2024.
  • 401K Limit for 2024 increased to $23,000 from $22,500; the limit on the contribution for individuals aged 50 and over remains at $7,500.
  • SIMPLE Retirement Plan is at $16,000 up from $15,500.

Standard Deduction Changes 2024:

  • Single & Married Filing Separately: $14,600
  • Married Filing Jointly: $29,200
  • Head of Household: $21,900

Additional State & Federal Tax Topics:

  • Oregon Worker’s Benefit Fund will reduce to 2.0 cents per hour. One-half of this amount is paid by the employer.
  • California 2024 SDI rate is 1.1% (up from .9% in 2023) and will have no wage limit for 2024. (Changed from $153,164 of wages in 2023)
  • The New Jersey TDI rate for 2024 remains at 0%; the FLI rate has increased to .09% of the first $161,400.
  • Effective Jan. 1, 2024, Minnesota’s earned sick and safe time law requires employers to provide paid leave to employees who work in the state. Minnesota’s current sick and safe leave law remains in effect until Dec. 31, 2023 and will be replaced by the new earned sick and safe time law on Jan. 1, 2024.
Paid Family Leave Chart 2024
State
Date to Start Collecting
(Payroll)
 Date Benefits can be Received Who Contributes Contribution Rate Benefit Catagories Employer/Employee Taxable Wage Base (2023)
Colorado 1/1/2023 2024 Employer/Employee 0.90% .45% Employer; .45% Employee $168,000
Connecticut 1/1/2021 1/1/2022 Employee 0.50% $168,000
DC 4/1/2019 7/1/2020 Employer 0.26%
Rate Reduced 7/1/2022
Maine 1/1/2025 Employee only
Massuchusetts 10/1/2019 1/1/2021 Employer & Employee with over 25 Employees 0.88% (total) .42% Employer .46% Employee $168,600
Massuchusetts 10/1/2019 1/1/2021 Employers with <25 Employees 0.460% Employee Only $168,600
Mary land 10/1/2024 Employer/Employee 0.90% 0.45% 0.45% TBD
New Jersey Established Program Employee Only 0.06% FLI $161,400
New York Employee Only 0.373% (Max of $333.25) Max $333.25 Per Employee
Oregon 1/1/2023 9/3/2023 Employer & Employee with over 25 Employees 1% Total Family Leave, Medical Leave, Safe Leave .60% Employees; .40% Employers $168,600
Rhode Island Established Program Employee Temporary Disability (TDI);Temporary Caregiver (TCI); 1.1%
Vermont 7/1/2024 Employer/Employee 0.44% .11% Employee
Washington 1/1/2019 1/1/2020 Employee and Employer (if over 50 employees) Just Employee for <50 Employees 0.74% Family Leave, Medical Leave 28.57% Employer: 71.43% Employee $168,600


*2024 Social Security Limit is $168,600
Each program has its own leave requirements and legnth of time to receive benefits
Go to specific state for more details

All TRICOM Full Service and Administrative-Only Clients should have received their Year End Questionnaire from the TRICOM team. Please make sure to respond promptly and return to the Accounting Representative that sent it to you.

For more legislative and year-end updates, please refer to TRICOM.com. We will post the latest legislative and tax updates, as well as tax tools and other resources for 2023 as they become available. For specific questions, please contact Mary Jo Heim in the TRICOM Accounting Department at 262-509-6214 or your TRICOM Accounting Representative.

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