Taxes

GPTCI-50434

Updated the Defined Contribution Benefit Limit for 401(k) plans in support of the latest IRS contribution limits, which are based on an employee’s age. Dayforce includes both standard and catch-up contributions based on the employee’s date of birth.

The IRS amount for 2025 is $70,000 for employee and employer contributions if aged 50 or less. The 401(k) plan limits that are based on the employee’s date of birth, apply the following age limits:

• 50 to 59 years or 65 years and above
  Dayforce accommodates the catch-up contribution, allowing the defined contribution limit to increase to $77,500.
• 60 to 63 years for employees who qualify for the super catch-up contribution, which sets the contribution limit at $81,250.

GPTCI-56993

For California employees who have not filed the California DE4 form to claim allowances and filing status for state income tax, Dayforce withholds their state income tax using the Single status and claiming zero withholding allowances. Previously, the system used the elections from the individual’s Federal W-4 form when they didn’t have the DE4 form on record.