The payroll industry is dynamic and ever-changing. Each year, federal, state, and local legislative changes affect how payroll is administered. Payroll professionals must keep their knowledge up to date to avoid hefty noncompliance fines.  Register for our program and let us help you advance your knowledge and prepare to take and pass the FPC or CPP certification exam this year!

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 2023 [Notice 2022-55, 10-21-22].

On October 13, the Social Security Administration (SSA) announced that the 2023 social security wage base will be $160,200, which is an increase of $13,200 from $147,000 in 2022 [SSA, Press Release, 10-13-22]. The SSA Fact Sheet is available at https://www.americanpayroll.org/compliance/compliance-overview/annual-irs-annoucements.

The IRS released cost-of-living-adjustments (COLAs) for 2023 reflecting any increases in excludable transportation fringes and the flexible spending arrangement (FSA) deferral limit, among other changes [Rev. Proc. 2022-38, 10-18-22].

The IRS released: a revised Form 941, Employer’s Quarterly Federal Tax Return, and its instructions; instructions for Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors; Schedule R, Allocation Schedule for Aggregate Form 941 Filers, and its instructions; and Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, and its instructions.

The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning July 1, 2022, will be 62.5 cents per mile, up 4 cents from the first half of 2022 [Announcement 2022-13, 6-9-22]. The IRS is making the midyear change “in recognition of the recent gasoline price increases.”

The IRS announced the 2023 maximum contribution levels for health savings accounts (HSAs) and out-of-pocket spending limits and deductible minimums for high deductible health plans (HDHPs) that must be used in conjunction with HSAs [Rev. Proc. 2022-24].

On April 6, the U.S. Department of Education announced it will extend the federal student loan relief until August 31, 2022 [U.S. Department of Education, Press Release, 4-6-22]

The IRS released cost-of-living-adjustments (COLAs) for 2022 reflecting any increases in the flexible spending arrangements (FSA) deferral limit, foreign earned income exclusion, and excludable transportation fringes, among other changes [Rev. Proc. 2021-45, 11-10-21].

The IRS has announced the cost-of-living adjustments (COLAs) to the dollar limits on benefits and contributions under qualified retirement plans, as well as other items, for tax year 2022.

• The limitation on the exclusion for elective deferrals under §402(g)(1) (e.g., §401(k) and §403(b) plans) increases to $20,500 (from $19,500).
• The limit on annual additions to defined contribution plans under §415(c)(1)(A) increases to $61,000 (from $58,000).