As businesses gear up for the new year, staying on top of tax updates is crucial for compliance and financial planning. The Payday 2025 Tax Facts highlight key federal and state-level changes that every business owner and HR professional should know.
Key Federal 2025 Tax Facts Updates:
- Social Security (OASDI) Wage Base: Increased to $176,100, with a 6.2% withholding rate.
- Medicare (HI) Contributions: No wage base limit; individuals earning over $200,000 pay an additional 0.9%.
- Retirement Contribution Limits: For 401(k) plans, the elective deferral limit is $23,000, with an additional $7,500 catch-up contribution for those over 50.
State Tax 2025 Tax Facts Highlights:
Tax rates and wage requirements vary significantly between these states:
New Jersey 2025 Tax Highlights:
- Minimum wage increased to $15.49 per hour, with tipped employees receiving a cash wage of $5.62.
- The taxable wage base for unemployment insurance is $43,300, higher than in many neighboring states.
Pennsylvania 2025 Tax Highlights:
- Minimum wage remains at $7.25 per hour, with tipped employees receiving a cash wage of $2.83.
- The taxable wage base for unemployment insurance is $10,000.
New York 2025 Tax Highlights:
- Minimum wage increased to $16.50 per hour in NYC, Nassau, Suffolk, and Westchester counties and remained $15.50 in the remainder of the state.
- The taxable wage base for unemployment insurance is $12,800.
How PayDay Can Help
Tax compliance can be daunting, but PayDay Employer Solutions simplifies the process. With tailored payroll services and automated systems, you can confidently manage updates like these. From adjusting withholding rates to navigating multi-state payrolls, PayDay ensures your operations stay efficient and compliant.
Stay informed and proactive by leveraging professional tools and expertise to tackle the evolving tax landscape. Our solutions are designed to save you time, reduce errors, and ensure compliance with the latest regulations. With expert guidance and cutting-edge technology, managing payroll and taxes has never been easier.
Contact us today to learn more.
