Attached is the Payroll Rates & Limits for 2025. The highlights are:
* The California minimum wage increases to $16.50
* IRS standard mileage rate increases to 70.0 cents per mile.
* The 403(b) and 457 contributions limits increase to $23,500, and for employees age 50 and over to $31,000. * A new higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
* Medical Flex Spending Arrangement (FSA) Reimbursement increases to $3,300.
* Social Security wage cap increases to $176,100 with the contribution limit to $10,918.20.
Escape has been updated.
Regards, School Business Advisory Services Team Santa Barbara County Education Office www.sbceo.org/sbas<www.sbceo.org/sbas>
Note: This message was sent on behalf of the School Business Advisory Services Team. Please do not respond to this message. Replies will be routed to an unmonitored mailbox. To unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe>
* The California minimum wage increases to $16.50
* IRS standard mileage rate increases to 70.0 cents per mile.
* The 403(b) and 457 contributions limits increase to $23,500, and for employees age 50 and over to $31,000. * A new higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
* Medical Flex Spending Arrangement (FSA) Reimbursement increases to $3,300.
* Social Security wage cap increases to $176,100 with the contribution limit to $10,918.20.
Escape has been updated.
Regards, School Business Advisory Services Team Santa Barbara County Education Office www.sbceo.org/sbas<www.sbceo.org/sbas>
Note: This message was sent on behalf of the School Business Advisory Services Team. Please do not respond to this message. Replies will be routed to an unmonitored mailbox. To unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe>
Rates-Limits-2025.pdf