US Taxes: Federal

Federal Benefit Limits - Adoption, Transportation and Other Benefits Wages/Rate changes effective January 1, 2025

Internal Revenue Service (IRS) has released Rev. Proc. 2024-40 which provides the federal fringe benefits limits effective January 1, 2025. GPTCI-53868

https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025

*Fringe Benefit*	*2025*
*Adoption Credit and Exclusion*
Maximum exclusion (Maximum amount that can be excluded for the amounts paid or expenses incurred by an employer furnished pursuant to an adoption assistance program)	$17,280
Phase-out (The amount excludable from an employee’s gross income begins to phase out when that gross income is in excess of the established threshold)	$259,190
Phase-out (The excludable amount is completely phased out when the gross income exceeds the established maximum limit)	$299,190
*Cafeteria Plans*
Health FSA	$3,300
*Qualified Transportation Benefits*
Monthly limitation on exclusion for transportation in a commuter highway vehicle (CHV) or transit pass	$325
Monthly limitation on exclusion for qualified parking	$325

https://www.irs.gov/pub/irs-drop/rp-24-40.pdf

Federal - Social Security wage base limit change [Effective 1/1/2025]

The Social Security Administration (SSA) has announced the Social Security wage base will increase to $176,100.00 from $168,600 .00 effective 1/1/2025. GPTCI-53176

The following wage base limits are also impacted by this change:

Colorado - Paid Family and Medical Leave - Employee
Colorado - Paid Family and Medical Leave - Employer
Colorado - Paid Family and Medical Leave Voluntary/Private - Employee
Colorado - Paid Family and Medical Leave Voluntary/Private - Employer
Connecticut - Paid Family and Medical Leave - Employee
Connecticut - Paid Family and Medical Leave - Employer
Connecticut - Paid Family and Medical Leave Voluntary/Private - Employee
Connecticut - Paid Family and Medical Leave Voluntary/Private - Employer
Campbell County (KY) - Employee Mental Health Tax
Campbell County (KY) - Employee Occupational Tax
Kenton County - Employee Occupational Tax
Covington City (Kenton County) - Employee Occupational Tax
Crestview Hills City (Kenton County) - Employee Occupational Tax
Edmonton City (Metcalfe County) - Employee Occupational Tax
Florence City (Boone County) - Employee Occupational Tax
Fort Wright City (Kenton County) - Employee Occupational Tax
Jackson City (Breathitt County) - Employee Occupational Tax
Newport City (Campbell County) - Employee Occupational Tax
Warsaw City (Gallatin County) - Employee Occupational Tax
Wilder City (Campbell County) - Employee Occupational Tax
Cold Spring City (Campbell County) - Employee Occupational Tax
Alexandria City (Campbell County) - Employee Occupational Tax
Highland Heights City (Campbell County) - Employee Occupational Tax
Union City (Boone County) – Employee Occupational Tax
Massachusetts - Family Leave - Employee
Massachusetts - Family Leave Voluntary/Private - Employee
Massachusetts - Medical Leave - Employee
Massachusetts - Medical Leave - Employer
Massachusetts - Medical Leave Voluntary/Private - Employee
Massachusetts - Medical Leave Voluntary/Private - Employer
Massachusetts - Paid Family Leave - Employer
Massachusetts - Paid Family Leave Voluntary/Private - Employer
Oregon - Paid Family and Medical Leave - Employee
Oregon - Paid Family and Medical Leave - Employer
Oregon - Paid Family and Medical Leave Voluntary/Private - Employee
Oregon - Paid Family and Medical Leave Voluntary/Private - Employer
Washington - Medical Leave - Employee
Washington - Medical Leave - Employer
Washington - Medical Leave Voluntary/Private - Employee
Washington - Medical Leave Voluntary/Private - Employer
Washington - Paid Family Leave - Employee
Washington - Paid Family Leave - Employer
Washington - Paid Family Leave Voluntary/Private - Employee
Washington - Paid Family Leave Voluntary/Private - Employer

https://www.ssa.gov/news/press/factsheets/colafacts2025.pdf