Tax Resources
This page pertains to tax information for social security, medicare, and retirement plans.
Annual Wage Base and Compensation Limits
Social Security Tax: The social security tax limit for 2024 is $168,600. Once an employee reaches the wage base limit in taxable wages during the calendar year, VCU payroll services will stop withholding the 6.2% tax from the employees pay. The employer match is also stopped. The tax and the employer match will resume as of January 1 of the following calendar year.
Medicare and Additional Medicare Tax: Medicare base tax does not have an annual wage base limit and will be withheld at 1.45% of all taxable medicare wages during the calendar year. Once an employee has accumulated more than $200,000 of taxable medicare wages, VCU payroll services will begin withholding the additional medicare tax at 0.9% for all taxable wages over the $200,000. This will continue until December 31st of the current calendar year.
Retirement Plans
Elective Deferral Limits: These contributions help to lower federal and state tax liability by allowing the employee to defer a portion of their salary. Each plan has an annual cap on the amount of income that can be deferred tax free.
- 401(k) — $23,000; Catch-up Contributions: $7,500
- 403 (b) — $23,000; Catch-up Contributions: $7,500
- 457 DCP — $23,000; Catch-up Contributions: $7,500