Here’s a look at 2016 Payroll Updates and Elective Deferral Limits:
2016 Wage Base
- 2016 Social Security wage base will be $118,500 (same as 2015)
- Wages paid in excess of $200,000 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages.
Elective Deferral Limits
- Elective deferral limits for 401(k), 403(b), and 457(b) plans is $18,000 for 2016 (same as 2015)
- Catch-up limit of $6,000 for age 50+ (same as 2015)
- FSA deferrals are expected to remain at $2,550 for 2016
State of Minnesota
- If you have more than 10 total W-2’s, you must submit them electronically to MN e-Services
- MN Unemployment 2016 wage base = $31,000 (increase of $1,000)
ACA Reporting Requirements for Employers with 50 or more Full Time Equivalents (FTEs)
- They must file Form 1095-C and Form 1094-C
Due Dates
- February 1, 2016
- 1095-Cs to Employees
- February 29, 2016
- 1094-C and 1095-C paper filed returns to IRS
- March 31, 2016
- 1094-C and 1095-C electronically filed returns to IRS
- Required if 250 or more 1095-Cs
- Extensions are available
Let the experts at Conway, Deuth & Schmiesing, PLLP (CDS) and CDS Administrative Services, LLC (CDSA) help you remain compliant.
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