2025 Payroll Updates: Key Changes and Compliance Requirements
As we usher in 2025, it’s vital for employers to stay informed about the latest payroll updates and requirements. Here’s a comprehensive summary of the key changes that may affect your business:
Minimum Wage Increase
New Rate: The minimum wage has increased to $15 per hour beginning January 1, 2025. Ensure your payroll systems and employee compensation align with this update to stay compliant.
Paystub Requirements
Employers are now mandated to provide paystubs that include:
- Hours worked
- Rate of Pay
- Overtime Pay
- Overtime Hours Worked
- Gross Wages Earned
- Wage Deductions
- Year to Date Totals – both gross wages earned & deductions must reflect year-to-date totals
Compliance Check – if your current paystubs lack this information, please contact SKDO for solutions to become compliant.
Social Security Wage Base Increase
New limit – The Social Security wage base has been raised to $176,100. Update your payroll calculations and withholdings to accommodate this change.
E-Filing Information Returns
Threshold: If you have a combination of 10 or more information returns, such as W2s, 1099s, and K1s, they MUST be e-filed.
Action Required: Visit our website for detailed instructions on e-filing and ensure timely submission to avoid penalties.
Important Deadlines
1099 Template Submission: Due to SKDO by January 20, 2025.
Payroll Information Submission: Including S-Corp Health Insurance amounts, due by January 13, 2025.
Resources for QuickBooks Users
QuickBooks Contractor Payments and Payroll Users: If you wish to e-file 1099s via QuickBooks, follow the relevant instructions based on your software version:
QuickBooks Online Instructions
QuickBooks Desktop Instructions
Assistance: Should you require additional help, our team is available at our hourly rates.
Ensuring compliance with these updates will help your business maintain accurate payroll records and avoid potential penalties. For further assistance or queries, please reach out to our team at SKDO.