Consider the following IRS changes that may affect payroll deductions:
Beginning on Jan. 1, 2015, the Internal Revenue Service standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 57.5 cents per mile for business miles driven, up from 56 cents in 2014
- 23 cents per mile driven for medical or moving purposes, down half a cent from 2014
- 14 cents per mile driven in service of charitable organizations
FSA, HSA, and 401(k) Contribution Limits Increase in 2015
Several of the most common benefit plans and account types have an increased allowance
for contributions in 2015. The IRS has announced that it will raise the annual dollar limit
on contributions for health care flexible spending accounts (FSAs), health savings accounts
(HSAs), and 401(k) accounts.
- Health Care Flexible Spending Accounts (FSA) – The maximum allowed amount that an employee can contribute to an employer-sponsored health care FSA is $2,550 in 2015
- Health Savings Accounts (HSA) – The annual limits for Health Savings Accounts are $3,350 for Single and $6,650 Family
- An additional $1,000 is allowed for anyone reaching age 55 by year end.
- 401(k) Accounts – In 2015, employees may defer up to $18,00 for the year to their 401(k) account and an additional $6,000 if they reach age 50 by the end of the year.
If you have any questions about how these changes may affect your payroll, please call us.