Every year, Cast & Crew highlights some of the key changes facing our industry in What’s New. While this spotlight does not provide legal advice, it does seek to alert our clients to the myriad of issues and challenges arising in our industry.
The updated 2023 edition of What’s New includes things like minimum wage increases, federal tax and retirement limits, and state loan-out withholding rates. If you have any questions or would like to learn more, connect with us at firstname.lastname@example.org.
What's new across the United States
New minimum wage increases
IRS issues standard mileage rates for 2023
Notice 2022-234, December 29, 2022
The Internal Revenue Service issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Effective on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) are:
- 65.5 cents per mile for business purposes
- 22 cents per mile for medical or moving purposes
- 14 cents per mile for charitable purposes
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on variable costs.
Social Security Tax limits for 2023
Effective on January 1, 2023, the maximum earnings subject to the Social Security payroll tax have increased by $13,200, to $160,200—up from 2022’s $147,000 maximum (as announced by the Social Security Administration (SSA) on October 13. The SSA also posted a fact sheet summarizing the 2023 changes.
The taxable wage cap is subject to an automatic cost-of-living adjustment (COLA) each year based on increases in the national average wage index, calculated annually by the SSA.
401(k) limits for 2023
The IRS recently announced that the 2023 contribution limit for 401(k) plans will increase by $2,000, to $22,500, up from $20,500 in 2022.
- The 401(k)-contribution limit is $22,500
- The 401(k) catch-up contribution limit has increased to $7,500 for those ages 50 and older
Hawaii’s loan-out withholding rate, 2023
Effective on January 1, 2023, in Hawaii, all payments made to loan-out companies are subject to a withholding amount of 4% for services in Maui County, or 4.5% for services in any other Hawaiian county.
What's new across Canada
CPP / EI Limits and more
Provincial minimum wages
WCB maximum assessable earnings