When it comes to payroll and HR, there are several federal and state changes to keep an eye on in 2020.
On the federal side, payroll calculations are going to look a little different in a number of ways. There is an updated social security wage base, new FSA (Flexible Spending Account) and HSA (Health
Savings Account) limits, revised HDHP (High Deductible Health Plan) out-of-pocket maximums, and changes to mileage reimbursements and transportation benefits.
You’ll also see a new QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) limit, and increased contribution limits for 401(k), 403(b), 457, and IRA plans. Last, but not least, there’s a revamped W-4 form that you’ll need to use for all new employees.
In addition to these federal changes, we’ve outlined the changes to each state’s minimum wages, tipped minimum wages, unemployment wage bases, state unemployment tax rates, and state income tax rates. A number of states are also enacting paid leave laws, harassment training requirements, and new or updated workers’ compensation requirements.
To use this guide effectively, make sure you review both the federal changes, and changes in any states where your business has employees.