Business Planning

Adoption Assistance Programs

Adoption assistance	2023	2024
Maximum amount that can be excluded from employee's gross income	$15,590	$16,810
Phaseout threshold amount	$239,230	$252,150
Completed phaseout amount after	$279,230	$292,150

Earnings subject to FICA taxes (taxable wage base)

FICA tax	2023	2024
Maximum annual earnings subject to Social Security taxes	$160,200	$168,600
Social Security and Medicare combined tax rate	15.30%¹	15.30%¹
OASDI portion (Social Security)	12.40%	12.40%
Hospital Insurance portion (Medicare)	2.90%¹	2.90%¹

¹ An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).

Health insurance deduction for self-employed

Health insurance premiums	2023	2024
Deduction for health insurance premiums paid by self-employed persons	100%	100%

Qualified transportation fringe benefits

Qualified transportation fringe benefits	2023	2024
Commuter vehicles and transit pass monthly exclusion amount	$300	$315
Qualified parking monthly exclusion amount	$300	$315
Qualified bicycle commuting reimbursement fringe benefit (monthly amount)	N/A	N/A

Section 179 expensing

Section 179 expensing	2023	2024
Maximum amount that may be deducted under IRC Section 179	$1,160,000	$1,220,000
Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount	$2,890,000	$3,050,000

Small business tax credit for providing health-care coverage

Amount of credit	2023	2024
Maximum credit percentage	50%	50%

Partial credit	2023	2024
Number of full-time equivalent employees (FTEs) fewer than:	25	25
Maximum average annual wages less than:	$61,400	$64,800

Full credit	2023	2024
Number of full-time equivalent employees (FTEs) no more than:	10	10
Maximum average annual wages less than or equal to:	$30,700	$32,400

Special additional first-year depreciation allowance

Bonus depreciation	2023	2024
"Bonus" depreciation for qualified property acquired and placed in service during specified time periods	80%	60%

Standard mileage rate (per mile)

Business use of auto	2023	2024
Use of auto for business purposes	$0.655	$0.67

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