Payroll Tax Changes to Watch for in 2025

The Social Security wage base may increase in 2025, impacting contributions for employees and employers.

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Federal Unemployment Tax Updates

[{"selector":"#anim-fbb0a974-988b-449a-b56d-b432d4507a45 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-1.0658141036401503e-14%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Changes to the FUTA tax rates or credits could be introduced. Employers should monitor updates closely. Changes to the FUTA tax rates or credits could be introduced. Employers should monitor updates closely. Learn more

State Payroll Tax Updates

[{"selector":"#anim-e7687de3-40d9-490e-a294-446e37179682 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-1.0658141036401503e-14%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Many states review payroll tax rates and thresholds annually. Local businesses should keep an eye on state-specific changes in 2025. Many states review payroll tax rates and thresholds annually. Local businesses should keep an eye on state-specific changes in 2025. Learn more

Medicare Tax Considerations

[{"selector":"#anim-52048991-3b59-4dd8-96c6-5235f4d457f0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-1.0658141036401503e-14%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Thresholds for the Additional Medicare Tax on high earners may see adjustments. Employers need to stay aware of any updates. Thresholds for the Additional Medicare Tax on high earners may see adjustments. Employers need to stay aware of any updates. Learn more

Plan Ahead for 2025

[{"selector":"#anim-92c86dd6-b92b-4892-bbd5-8f05adfb8a0e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-1.0658141036401503e-14%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Staying informed about payroll tax changes is essential for smooth operations. Jarrar & Associates CPA can help you navigate updates and stay organized. Staying informed about payroll tax changes is essential for smooth operations. Jarrar & Associates CPA can help you navigate updates and stay organized. Learn more