January 2025

 

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IRS Releases 2025 Version of Publication 15-A

01/09/25

Author: ADP Admin/Monday, January 6, 2025/Categories: Compliance Corner , Federal Compliance Update

The Internal Revenue Service (IRS) has posted the 2025 version of Publication 15-A, the Employer's Supplemental Tax Guide located here.

The Details:

IRS Publication 15-A supplements IRS Publication 15 (Circular E), by providing more specialized and detailed employment tax information on certain topics covered in IRS Publication 15.

There are sections in IRS Publication 15-A on: (1) Who Are Employees; (2) Employee or Independent Contractor; (3) Employees of Exempt Organizations; (4) Religious Exemptions and Special Rules for Ministers; (5) Wages and Other Compensation; (6) Sick Pay Reporting; (7) Special Rules for Paying Taxes; and (8) Federal Income Tax Withholding on Retirement Payments and Annuities.

A highlight under “What’s New” is as follows:

Social security and Medicare taxes for 2025. The social security tax rate is 6.2% each for the employee and employer. The social security wage base limit is $176,100.

The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2024. There is no wage base limit for Medicare tax.

Social security and Medicare taxes apply to the wages of household workers you pay $2,800 or more in cash wages in 2025. Social security and Medicare taxes apply to election workers who are paid $2,400 or more in cash or an equivalent form of compensation in 2025.

Next Steps

Employers should review Publication 15-A to learn the requirements in 2025 regarding employment taxation.

 

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