As the year is coming to an end, employers should be mindful of payroll and compliance updates. The changes are as follows:
2019 Highlights from the IRS
Maximum contribution to a 401k, 403b and most 457 plans have increased from $18,500 to $19,000 per year and the catch-up limit for employees over the age of 50 remains $6,000.
IRA contributions limits have increased from $5,500 to $6,000, while the catch-up limit remains $1,000.
New York State Minimum Wage and Exempt Salary Threshold (Effective Dec. 31, 2018)
Companies with 10 or fewer employees:
Hourly employees will earn at a minimum rate of $13.50/hour
Exempt salary threshold will be $52,650/year
Companies with 11 or more employees:
Hourly employees will earn at a minimum wage rate of $15/hour
Exempt salary threshold will be $58,500/year
Updated FICA Tax Cap Off
Starting January 1, 2019 the payroll tax for Social Security will be capped off at $132,900, a $4,500 increase from 2018’s maximum earning of $128,400.
Medicare remains to have no limit.
Note: Employers should notify employees that they will see a decrease in their net pay.
2019 Labor Posters
In order to be compliant with state regulations, employers should keep track of when 2019 labor posters are available to be posted at office locations. Key things to be aware of:
Remote employees should be receiving labor poster (physical or electronic) of the state they are working in, not the state of the employer
Posters should be in a place that is visible and accessible to everyone
New York State labor posters must include the state anti-harassment policy
Tip: To update the new minimum wage poster, you can print a label and paste it on top of the current salary. Stay up to date without spending money buying a new set of posters.