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

We know the end of the year is already a hectic time between holidays, commitments with family and friends, and year end business goals. It’s also the time of year when important tax and legislative updates for the next year are announced. It can be hard to keep up with all the changes that may impact your staffing company: from minimum wage increases to state and federal tax changes, to unemployment wage bases, and more.

We’ve assembled a list of changes, charts, and resources that may impact your staffing company in the new year, as well as tax tools that can help you plan and prepare. We’ll keep making updates as we receive them, but in the meantime, we invite you to review the host of changes coming up in 2025.

Earned Income Tax Credit Notice Information:

For 2024, you are encouraged to notify the following employees that they may be able to claim EIC on their 2024 tax returns:

 

Filing Status

No Children

1 Child

2 Children

3 or More Children

Single/ Head of Household

$17,240

 $42,298 

$47,965 

$51,969

Married Filing Jointly

$24,120

$49,278 

$55,945 

 $59,949 

Maximum EITC ranges from $600 (no children) up to $7430 (with three or more children)

There are eight 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
  • Colorado

Once these documents are updated for the current year, they will be available on TRICOM’s website under: http://tricom.com/resources/tax-tools. Please contact your TRICOM Accounting representatives if you have any questions.

Minimum Wage Increases:

2025 Wage Changes
STATE 2025 2024 Change
Alaska $ 11.91 $ 11.73 $ 0.18
Arizona $ 14.70 $ 14.35 $ 0.35
California $ 16.50 $ 16.00 $ 0.50
Colorado $ 14.81 $ 14.42 $ 0.39
Connecticut $ 16.35 $ 15.69 $ 0.66
Delaware $ 15.00 $ 13.25 $ 1.75
Illinois $ 15.00 $ 14.00 $ 1.00
Maine $ 14.65 $ 14.15 $ 0.50
Michigan $ 10.56 $ 10.35 $ 0.21
Minnesota $ 11.13 $ 10.85 $ 0.28
Missouri $ 13.75 $ 12.30 $ 1.45
Montana $ 10.55 $ 10.30 $ 0.25
Nebraska $ 13.50 $ 12.00 $ 1.50
New Jersey $ 15.49 $ 15.13 $ 0.36
New York $ 15.50 $ 15.00 $ 0.50
Ohio $ 10.70 $ 10.45 $ 0.25
Rhode Island $ 15.00 $ 14.00 $ 1.00
South Dakota $ 11.50 $ 11.20 $ 0.30
Vermont $ 14.01 $ 13.67 $ 0.34
Virginia $ 12.41 $ 12.00 $ 0.41
Washington $ 16.66 $ 16.28 $ 0.38

2025 Unemployment Wage Bases:

Taxable Wage Base for 2025

STATE WAGE BASE STATE WAGE BASE
Alabama $8,000 Nebraska 9,000
Alaska   Nevada 41,800
Arizona 8,000 New Hampshire 14,000
Arkansas 7,000 New Jersey 43,300
California 7,000 New Mexico 31,700
Colorado 27,200 New York 12,800
Connecticut 26,100 North Carolina 12,800
Delaware 12,500 North Dakota 46,800
District of Columbia 9,000 Ohio 9,000
Florida 7,000 Oklahoma 28,200
Georgia 9,500 Oregon 52,800
Hawaii   Pennsylvania 10,000
Idaho 53,300 Puerto Rico 7,000
Illinois   Rhode Island (Tier 1) 31,800
Indiana 9,500 Rhode Island (Tier 2) 31,800
Iowa 39,500 South Carolina 14,000
Kansas 14,000 South Dakota 15,000
Kentucky   Tennessee 7,000
Lousiana   Texas 9,000
Maine 12,000 Utah 47,000
Maryland 8,500 Vermont 14,800
Massachusetts 15,000 Virgin Islands 31,000
Michigan   Virginia 8,000
Minnesota   Washington 72,800
Mississippi 14,000 West Virginia 9,500
Missouri 9,500 Wisconsin 14,000
Montana   Wyoming 32,400
SS LIMIT 176,100

 

  • 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 2024

 

FUTA Reduction States:

For tax year 2024, there are two states and the Virgin Islands that will have FUTA reduction charges for 2024 and potentially 2025. The FUTA rates for 2024 for California and New York will be increased by .3% to 1.5%. If the federal loans are not repaid by 11/10/2025 the 2025 rate will increase by another .3% to 1.8%. TRICOM will be monitoring these loans and will update our clients as 2025 progresses. TRICOM has withheld the extra FUTA funds for 2024, so there will be no extra amounts we will need to collect. 

State Tax Table Changes:

The following states have changed their tax tables for 2025 (please keep in mind other states may be added to this list):

  • Kentucky (New Withholding Certificate as well)
  • Maine
  • Montana
  • Iowa

Federal Tax Changes:

  • Social Security Wage Limit has increased from $168,600 to $176,100.  This is an increase for both the employee and the employer of $465.00. The additional .9% Medicare tax on employee wages over $200,000 is still in place for 2025.
  • 401K Limit for 2025 increased to $23,500 from $23,000; the limit on the contribution for individuals aged 50 and over remains at $7,500. There are some new rules in 2025 for some individuals 60-63, check with your 401K provider for more details.
  • SIMPLE Retirement Plan is at $16,500 up from $16,000.

Standard Deduction Changes 2025:

  • Single & Married Filing Separately: $15,000
  • Married Filing Jointly: $30,000
  • Head of Household: $22,500

Additional State Tax Topics:

  • California 2025 SDI rate is 1.2% (up from 1.1% in 2024) and will have no wage limit for 2025 similar to 2024.
  • The New Jersey TDI rate for 2025 rate is .23%; the FLI rate is .33% of the first $165,400.

Paid Family Leave  & Disability Chart 2025

 

 

 

 

State

Date to Start Collecting (Payroll)

Date Benefits can be Received

Who Contributes

Contribution Rate

Benefit Catagories

Employer/Employee

Taxable Wage Base (2025)

California

1/1/2025

 

Employee

1.20%

SDI

1.2% Employee

None

Colorado

1/1/2025

 

Employer/
Employee*

0.90%

PFL

.45% Employer; .45% Employee

176,100

Connecticut

1/1/2025

 

Employees

0.50%

PFL

.50% Employee

176,100

Delaware

1/1/2025

1/1/2026

Employer w/10 or more employees, employees

0.8% for 25 or more employees
0.32% for 10-24 employees

PFL

>25 employees: 0.8% for employer, up to 0.4% for employees
10-24 employees: 0.32% for employers, up to 0.16% for employees

176,100

DC

1/1/2025

 

Employer

0.75%

PFL

0.75% Employers

None

Hawaii

1/1/2025

 

 

0.50%

SDI

Private Plans Only

 

Maine

1/1/2025

 

Employer, employee (if employer elects)

>15 employees 1%
<14 employees 0.5%

PFL

>15 employees: 1% for employers (may deduct 0.5% from employees)
<14 employees: 0.5% for employers (may deduct 0.5% from employees)

176,100

Maryland

7/1/2025

7/1/2026

Employer/
Employee*

0.90%

PFL

0.45% for employers, 0.45% for employees

176,100

Massachusetts

1/1/2026

 

Employer/
Employee*

0.88%

PFL

0.42% for employers, 0.46% for employees

176,100

New Jersey

 

 

Employer

0.1%-0.75%

TDI

0.5% for new employers (0.1%-0.75% for other employers)

43,300 employer wage base
165,400 employee wage base

New York

 

 

Employer/
Employee

0.5% (weekly)

SDI

Employer: additional cost beyond employee contributions
Employee: 0.5% weekly

$120 weekly

 

 

 

Employee

0.388%

PFL

0.388% for employees

$91,373.88 (annualized equivalent of state average weekly wage of wage $1,757.19 for 2025)

Oregon

1/1/2025

 

Employee/
Employer

1%

PFL

Employees: 0.6%
Employers: 0.4%
(Employers with <25 employees are not required to pay employer portion)

176,100

Puerto Rico

 

 

Employer/
Employee

0.60%

SDI

0.3% employer, 0.3% employee

$9,000

Rhode Island

 

 

 

1.2%**

SDI

 

$31,800

Washington

1/1/2025

 

Employer/
Employee

0.92%

PFL

Employees: 28.48%
Employers: 71.52%
(Employers with <50 employees are not required to pay employer portion)

176,100

*Small employers (fewer than 10 employees) are exempt from employer contributions but must withhold and remit employee contribution and fulfill reporting obligations

2025 Social Security Limit is $176,100

Each program has its own leave requirements and legnth of time to receive benefits

Go to specific state for more details

** Rhode Island Disability rate not yet released for 2025
State Eligible Employers Accrual Rate Annual Accrual Cap
Arizona All employers 1 hour / 30 worked

24 hours (employers with fewer than 15 employees)

40 hours (employers with 15 or more employees)
California All employers* 1 hour / 30 worked 80 hours (and a usage cap of 40 hours)
Colorado All employers 1 hour / 30 worked 48 hours
Connecticut Employers with 50 or more employees

(25 or more employees beginning January 1, 2025)
 1 hour / 40 worked*

*1 hour / 30 worked (beginning January 1, 2025)		 40 hours
Illinois—paid leave for any reason

All employers 1 hour / 40 worked 40 hours
Maine—paid leave for any reason Employers with more than 10 employees 1 hour / 40 worked 40 hours
Maryland Employers with 15 or more employees 1 hour / 30 worked 40 hours
Massachusetts Employers with 11 or more employees 1 hour / 30 worked 40 hours
Michigan

Employers with 50 or more employees 1 hour / 35 worked 40 hours
Minnesota All employers 1 hour / 30 worked 48 hours, carried over from year to year, until the employee reaches an 80-hour “bank”
Nevada—paid leave for any reason Employers with 50 or more employees 0.01923 hours / 1 hour worked No stated cap
New Jersey All employers 1 hour / 30 worked

 40 hours
New Mexico All employers 1 hour / 30 worked 64 hours
New York All employers 1 hour / 30 worked 40 hours (employers with 5 – 99 employees)

56 hours (employers with 100 or more employees)
Oregon Employers with 10 or more employees 1 hour / 30 worked
OR
1 ⅓ hours / 40 worked
 40 hours
Rhode Island Employers with 18 or more employees 1 hour / 35 worked 40 hours
Vermont All employers 1 hour / 52 worked 40 hours
Washington All employers 1 hour / 40 worked No cap
Washington D.C All employers 1 hour / 87 hours worked (employers with fewer than 25 employees)

1 hour / 43 hours worked (employers with 25 – 99 employees)

1 hour / 37 worked (employers with 100 or more employees)
 24 hours (employers with fewer than 25 employees)

40 hours (employers with 25 – 99 employees)

56 hours (employers with 100 or more employees)

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 2025 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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