Lyons HR PEO

Payroll Compliance Updates for 2024

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Learn about the latest payroll updates for 2024, including increased wage bases and contribution limits.

In the dynamic landscape of human resources and payroll management, staying compliant with federal, state, and local regulations is crucial for businesses. Payroll compliance ensures that employees are paid securely, accurately, and in a timely manner, thereby contributing to positive workforce morale.

As we enter the 2024 tax year, employers should be aware of several changes impacting payroll, including:
  • an increase in the Social Security wage base to $168,600,
  • a rise in Health Flexible Spending Arrangement (FSA) contribution limits to $3,200,
  • a higher pre-tax contribution level for 401(k) at $23,000,
  • and an elevated FICA threshold for household employees at $2,700.
Navigating payroll compliance involves understanding federal laws that govern the process. 

Some of the most important to keep up with include:

  • The Fair Labor Standards Act (FLSA): Establishes national minimum wage, overtime rates, and sets guidelines for payroll recordkeeping and child labor laws.
  • The Federal Insurance Contributions Acts (FICA): Funds Social Security and Medicare through payroll taxes.
  • The Federal Unemployment Tax Act (FUTA): With state unemployment systems, provides temporary income assistance for workers who lose their job through no fault of their own.
  • The Equal Pay Act (EPA): Prevents wage discrimination based on sex, ensuring equal pay for similar work.
  • The Davis-Bacon Act: The Davis-Bacon and Related Acts Final Rule issued in 2023 sets forth rules for the administration and enforcement of Davis-Bacon labor standards which apply to federal and federally assisted construction projects, such as wage determinations, recordkeeping requirements and enforcement.

 

Keeping up with payroll tax compliance can be arduous, as well. In addition to calculating wages (including overtime) accurately, employers must ensure withholdings are correct and reporting and deposits are made on deadline. Employers with employees in multiple tax jurisdictions must pay careful attention to deadlines and reporting requirements that can also include municipal regulations and requirements.

Failing to comply with payroll regulations can lead to severe consequences, including back payments, audits, fines, legal expenses, decreased employee morale, and loss of crucial data.

Clients of Lyons HR enjoy the assurance that payroll tax reporting and compliance is at the core of the services they receive.

As you manage the complexities of payroll compliance, Lyons HR offers the assistance you need. With expertise in payroll and tax administration, our team provides precise calculation of employee withholding as well as timely tax reporting and remittance.  We invite small businesses to take advantage of a free 15-minute discovery call with our team to learn more about how our PEO services can streamline payroll processes, mitigate compliance risks, and contribute to the overall success of your business.

Looking For Solutions? We Can Help!

Lyons HR can help you address all these concerns and more, as you grow your business and position it for whatever the future looks like. Functioning like an off-site HR department, we can manage any or all your talent management needs, from recruitment through retirement. At Lyons, We Are HR. Read our related posts or contact us today to learn more.

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