--- title: 6 Payroll-Related Updates to Keep in Mind for 2025 description: The new year ushers in new updates related to payroll and employment. Here’s a brief overview of some of those changes for 2023, broken down into 6 points for clarity. image: https://www.oberlanderandco.com/hubfs/shutterstock_522193918%20(1).jpg --- ![payroll updates ](https://www.oberlanderandco.com/hubfs/shutterstock_522193918%20(1).jpg) # 6 Payroll-Related Updates to Keep in Mind for 2025 Published by [Oberlander & Co Team](https://www.oberlanderandco.com/insights/author/oberlander-co-team) Last Updated November 4, 2025 [Payroll](https://www.oberlanderandco.com/insights/tag/payroll) [Health Insurance](https://www.oberlanderandco.com/insights/tag/health-insurance) [New York](https://www.oberlanderandco.com/insights/tag/new-york) [Retirement Plan](https://www.oberlanderandco.com/insights/tag/retirement-plan) The new year ushers in new updates related to payroll and employment. Here’s a brief overview of some of those changes for 2025, broken down into six points for clarity.   ## 1. Social Security wage base increase FICA, which is comprised of Social Security and Medicare taxes, is at a fixed rate of 7.65% on the employer, as well as an equal rate on the employee. The Social Security portion of the FICA is at 6.2% and is capped to a taxable compensation wage base that adjusts annually. In 2026 the limit will be $184,500, which is up from $176,100 in 2025.    ## 2. Minimum wage increases The minimum wage can vary depending on the state and locality of your employees. Each year, federal, state, and local minimum wage rates can potentially change. As of January 2025, the minimum wage in NY and NJ is as follows: - $17.00 hourly for NYC, Long Island, and Westchester.  - $16.00 for the remainder of New York State. Up from $15.50 in 2025 - $15.92 for New Jersey workers. Up from $15.49 in 2025   ## **3. Retirement contribution limits ** - The [limit for employees who participate in retirement programs](https://www.irs.gov/newsroom/irs-announces-changes-to-retirement-plans-for-2022) in 2025 401-K is $23,500, an increase of $500 from 2024. - The limit for IRA contributions remains at **$7,000**.    ## **4. Health savings account limits ** - If you offer employees a high deductible healthcare plan (HDHP) with a [health savings account](https://www.oberlanderandco.com/insights/health-savings-account-hsa) (HSA) option, keep in mind that contributions are limited each year. For 2025, employees with self-only coverage can contribute up to $4,400 (an increase of $50 from 2025) for the year. - If an employee has family coverage, they can contribute up to **$8,750** (an increase of $200 from 2025). And if they’re 55+, they can put in an additional $1,000 in catch-up contributions (unchanged from previous years).   ## **5. State unemployment tax rates ** State unemployment tax rates may change annually. Many states send employers a new unemployment rate each year via a notice in the mail. NYS sends a letter with updated UI rates annually.   To ensure your state unemployment rates are accurate for the new year, make sure to forward any correspondence you receive from the state to your payroll provider. If you are using payroll software provided by Oberlander & Co, we review your UI rate annually on our NYS online account and update it accordingly.   ## **6. Annual harassment prevention training  ** Many states, including [New York](https://www.ny.gov/combating-sexual-harassment-workplace/employers), require all employers, regardless of size, to provide annual sexual harassment prevention training to part-time, full-time, and seasonal employees. In light of this requirement, the [Agudath Israel of America](http://www.agudah.org) created a training module that complies with the law but is also sensitive to our community's standards. You can reach out to them [here](mailto:rthursch@agudah.org) to learn more about this training module.     ❓ Looking to learn more about Form 1099 Requirements? [Read more here](https://www.oberlanderandco.com/insights/new-1099-requirements-2020). #### Share this blog: [** ](https://twitter.com/intent/tweet?text=I+found+this+interesting+blog+post&url=https://www.oberlanderandco.com/insights/payroll-updates) [** ](http://www.facebook.com/share.php?u=https://www.oberlanderandco.com/insights/payroll-updates) [** ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.oberlanderandco.com/insights/payroll-updates) [** ](https://api.whatsapp.com/send?text=https://www.oberlanderandco.com/insights/payroll-updates) [Back to Blog](https://www.oberlanderandco.com/insights) ## Related Articles ## [New Child Tax Credit Monthly Advance Payments.](https://www.oberlanderandco.com/insights/monthly-child-tax-credit) The IRS announced that the Child Tax Credit Advance that passed as part of ARPA would start on July... 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