Dec 14, 2015 12:22:18 PM
By Coastal Payroll
The Internal Revenue Service has announced the annual inflation adjustments for 2016; these adjustments include social security, 401k, and HSA limits. Several states have also had increases in minimum wage and their corresponding wage bases. All of the adjustments, both federal and state, become effective January 1, 2016.
For calendar year 2016, the amount of taxable earnings will remain $118,500. The maximum tax payable by an employee will be $7,347.00. Employers match will be the same.
2016 Annual HSA Contribution Limits:
Self-only HDHP coverage: $3,350
Family HDHP coverage: $6,750
Individuals who reach the age of 55 by the end of the calendar year may contribute an extra $1000 per year.
2016 Annual HDHP Minimum Deductibles:
Self-only coverage: $1300
Family coverage: $2,600
2016 HDHP Out-of-Pocket Limits:
Self-only coverage: $6,550
Family coverage: $13,100
01/01/16: California to $10/hr
05/01/16: San Francisco to $12.25/hr
07/01/16: Los Angeles and San Diego* to $10.50/hr
* San Diego minimum wage increases were originally passed, however, will be brought to a public vote on June 2016 ballot
For additional information on minimum wage by State, please refer to: http://www.dol.gov/whd/minwage/america.htm