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.