The Social Security Administration announced on October 24 that the 2026 social security wage base will be $184,500, an increase of $8,400 from $176,100 in 2025. As in prior years, there […]

On September 22, the IRS issued proposed regulations to provide guidance on the “no tax on tips” provision of Public Law 119-21, known as the One Big Beautiful Bill Act […]

The IRS released cost-of-living-adjustments (COLAs) for 2026 reflecting any increases in excludable transportation fringes and the flexible spending arrangement (FSA) deferral limit, among other changes [Rev. Proc. 2025-32, 10-9-25]. For […]

On Thursday, July 3, the U.S. House of Representatives passed H.R. 1, commonly referred to as the One Big Beautiful Bill Act. The vote came just two days after the Senate narrowly passed the legislation. President Trump is expected to sign the legislation soon.

The IRS announced the changes to the dollar limits on benefits and contributions under qualified retirement plans, as well as other items, for tax year 2025 [Notice 2024-80, 11-1-24].

2025 COLAs for Transportation Fringes, FSA Deferrals

For 2025, the amounts that may be excluded from gross income for employer-provided qualified transportation fringe benefits and qualified parking increase to $325 per month ($315 in 2024)
For plan years beginning in 2025, the dollar limitation for voluntary employee salary reductions for contributions to health FSAs increases to $3,300 ($3,200 in 2024). For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount increases to $660 ($640 in 2024).

The Social Security Administration (SSA) announced on Thursday, October 10, that the 2025 social security wage base will be $176,100, an increase of $7,500 from $168,600 in 2024. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are subject to the 1.45% tax. As in 2024, wages paid in excess of $200,000 in 2025 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.

The IRS released the optional “high-low” per diem rates for lodging expenses and meals and incidental expenses (M&IE) that may be used instead of the General Services Administration’s “actual” per diem rates for travel to locations within the continental U.S (CONUS).

The IRS released its annual inflation adjustment to the percentage of household income used to determine whether an employer’s offer of health care coverage under the Affordable Care Act (ACA) is affordable [Rev. Proc. 2024-35, 9-6-24].

On July 17, the IRS announced that some amended employment tax returns can be electronically filed using the Modernized e-File (MeF) program [IRS, Post Release Changes to Forms, Electronic Filing of Some Amended Employment Tax Returns Is Now Available, 7-17-24].