Human Resources

FICA
Social Security Tax is 6.2% on income up to $176,100
Medicare Tax unlimited 1.45% to Unlimited

ACA Affordability — The ACA benchmark for determining the affordability of employer-sponsored health coverage will drop significantly to 9.02% of an employee’s household income for the 2025 plan year.

High Deductible Health Plans
Minimum Annual Deductible (Individual/Family) $1,650 / $3,300
Maximum Out-of-Pocket Limit (Individual/Family) $8,300 / $16,600

Health Savings Accounts
Individual / Family $4,300 / $8,550
Catch-up Contribution $1,000

Excepted Benefit HRA $2,150

Excepted-benefits health plans are non-traditional, fully insured and tax-advantaged health plans that are exempt from Affordable Care Act (ACA) requirements, which means they can be offered to select (versus all) employees at the employer’s discretion, including practice owners/partners.

ACA Plan Limits
Out-of-Pocket Limits Individual / Family $9,450 / $18,900

Flexible Spending Accounts
Health Care Flexible Spending Account Maximums $3,300 Maximum carryover $660
Dependent Care Spending Account Maximum $5,000 per household

Dependent Care Spending Account Maximum for highly compensated ($155,000 in 2025) employees $3,600 per family
The dependent care FSA maximum is set by statute and is not subject to inflation-related adjustments.

Adoption Assistance

In 2025, employees can be offered up to $17,280 tax-free; to offset qualified adoption expenses they incur in connection with adopting an eligible child.

Standard Mileage Rates
70 cents per mile for business miles driven
21 cents per mile for medical or moving purposes
14 cents per mile driven in service of charitable organizations

Parking (monthly) $325
Mass Transit Passes (monthly) $325

Compensation
Compensation Limit $350,000
Highly Compensated Employee Salary Amount $160,000
Annual Compensation for Key Employee $220,000
Defined Benefit Plan Limit $280,000
Defined Contribution Plan Limit $70,000

Retirement Plans
401(k) $23,500
401(k) Catch-up $7,500

401(k) Catch-up Ages 60-63 $11,250

IRA Limit $7,000/$8,000 for age 50+
Simple IRA Limit $16,500/$3,500 Catch-Up

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

FICA
Social Security Tax is 6.2% on income up to $168,600
Medicare Tax unlimited 1.45% to Unlimited

ACA Affordability — The ACA benchmark for determining the affordability of employer-sponsored health coverage will drop significantly to 8.39% of an employee’s household income for the 2024 plan year.

High Deductible Health Plans
Minimum Annual Deductible (Individual/Family) $1,600 / $3,200
Maximum Out-of-Pocket Limit (Individual/Family) $8,050 / $16,100

Health Savings Accounts
Individual / Family $4,150 / $8,300
Catch-up Contribution $1,000

Excepted Benefit HRA $2,100

Excepted-benefits health plans are non-traditional, fully insured and tax-advantaged health plans that are exempt from Affordable Care Act (ACA) requirements, which means they can be offered to select (versus all) employees at the employer’s discretion, including practice owners/partners.

ACA Plan Limits
Out-of-Pocket Limits Individual / Family $9,450 / $18,900

Flexible Spending Accounts
Health Care Flexible Spending Account Maximums $3,200 Maximum carryover $640
Dependent Care Spending Account Maximum $5,000

Dependent Care Spending Account Maximum for highly compensated ($150,000 in 2023) employees $3,000
The dependent care FSA maximum is set by statute and is not subject to inflation-related adjustments.

Standard Mileage Rates
65.5 cents per mile for business miles driven
22 cents per mile for medical or moving purposes
14 cents per mile driven in service of charitable organizations

Parking (monthly) $315
Mass Transit Passes (monthly) $315

Compensation
Compensation Limit $345,000
Highly Compensated Employee Salary Amount $155,000
Annual Compensation for Key Employee $220,000
Defined Benefit Plan Limit $275,000
Defined Contribution Plan Limit $69,000

Retirement Plans
401(k) $23,000
401(k) Catch-up $7,500

IRA Limit $7,000/$8,000 for age 50+
Simple IRA Limit $16,000/$3,500 Catch-Up

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

The Consolidated Appropriations Act, 2023 (CAA23) was signed into law on December 23, 2022. One of the health provisions contained in the law was the relief on telehealth coverage offered through HSA Qualified High Deductible Health Plans (HDHPs).

Typically, HSA-qualified HDHPs cannot pay for covered services, except for specified preventive care, until the individual satisfies the plan’s deductible. The CARES Act that passed into law in 2020 permitted people who have coverage through a HDHP to receive telehealth care at no cost, regardless of the plan’s annual deductible, without impacting their eligibility to contribute to an HSA. This provision was set to expire on December 31, 2022. Now, the CAA23 creates a safe harbor for first-dollar telehealth coverage offered through an HDHP for plan years beginning after December 31, 2022 through December 31, 2024.

Plan sponsors can only begin taking advantage of this new relief once their plan renews after December 31, 2022. This means that groups with plans renewing on January 1, 2023, can offer the relief immediately, whereas groups with plans that renew in a different month of the year will need to wait until the start of their 2023 plan year to begin offering it.

The way the legislation is written, there is a small gap for non-calendar year plans. The new extension applies for plan years beginning after December 31, 2022. For example, an HDHP with a plan year beginning June 1 could not offer telehealth before the deductible for the period from January 1, 2023 through the end of May 2023. Any HDHP that does not have a calendar plan year would have a similar gap between January 1, 2023 and its plan year start.

The telehealth relief is optional for plan sponsors. Group plan sponsors are not required to offer their participants access to telehealth coverage at all, nor do they have to offer it on a first-dollar basis for any type of plan offering, including HDHPs. If a group decides to adopt this relief, they also need to make sure their plan documents are amended accordingly.

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

FICA
Social Security Tax is 6.2% on income up to $160,200
Medicare Tax unlimited 1.45% to Unlimited

Individual Mandate’s Affordability Exemption — required contribution percentage is 8.17%.

High Deductible Health Plans
Minimum Annual Deductible (Individual/Family) $1,500 / $3,000
Maximum Out-of-Pocket Limit (Individual/Family) $7,500 / $15,000

Health Savings Accounts
Individual / Family $3,850 / $7,750
Catch-up Contribution $1,000

ACA Plan Limits
Out-of-Pocket Limits Individual / Family $9,100 / $18,200

Flexible Spending Accounts
Health Care Flexible Spending Account Maximums $3,050 Maximum carryover $610
Dependent Care Spending Account Maximum $5,000
The dependent care FSA maximum is set by statute and is not subject to inflation-related adjustments.

Mileage & Transportation

The IRS has not announced the official 2023 mileage rates. Considering that fuel prices are not at a peak high anymore as back in June and July of 2022, there is a chance the IRS mileage rate 2023 remains at the same levels, currently being:

Standard Mileage Rates
62.5 cents per mile for business miles driven
22 cents per mile for medical or moving purposes
14 cents per mile driven in service of charitable organizations

Parking (monthly) $300
Mass Transit Passes (monthly) $300

Compensation
Compensation Limit $330,000
Highly Compensated Employee Salary Amount $150,000
Annual Compensation for Key Employee $215,000
Defined Benefit Plan Limit $265,000
Defined Contribution Plan Limit $66,000

Retirement Plans
401(k) $22,500
401(k) Catch-up $7,500

IRA Limit $6,500/$7,500 for age 50+
Simple IRA Limit $15,500/$3,500 Catch-Up

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

The Affordable Care Act (ACA) benchmark for determining the affordability of employer-sponsored health coverage will significantly decrease to 9.12% of an employee’s household income for the 2023 plan year. This is a significant decrease from the 2022 level of 9.61%. This affordability percentage affects an individual’s eligibility for federally subsidized coverage from a marketplace exchange. It also can potentially affect the employer’s liability for shared-responsibility assessments.

Employee Benefit Advisors provides, employee benefits, Healthcare Consumption Audits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services. We can customize a wellness plan for your budget and culture.