Federal

Fast Wage and Tax Facts

For the most current information and additional states, visit us at: www.ADP.com/Fast

Federal Tax Facts

Minimum Wage

Effective 7/24/2009

  • Minimum Wage
    $7.25
  • Minimum Cash Wage (Tipped Employee)
    $2.13
  • Maximum Tip Credit
    $5.12
  • Youth Minimum Wage
    $4.25

FICA (Medicare)

  • Maximum Taxable Earnings
    No Limit
  • Employee / Employer Tax Rate (Unchanged from 2024)
    1.45%
  • Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)
    0.90%

FICA (Social Security)

  • Maximum Taxable Earnings (Increased from $168,600 in 2024)
    $176,100
  • Employee / Employer Tax Rate (Unchanged from 2024)
    6.20%

FUTA (Employer-Paid)

  • Maximum Taxable Earnings
    $7,000
  • Percent of Taxable Wages
    6.00%
  • Maximum Credit
    5.40%
  • Normal Net Tax
    0.60%

Supplemental Wage / Bonus Rates

  • Flat Rate Withholding Method (Unchanged from 2024)
    22%
  • Pay over $1 Million (Unchanged from 2024)
    37%

Health Savings Accounts

  • Self-Only Contribution Limit (Employee / Employer)(Increased from $4,150 in 2024)
    $4,300
  • Family Contribution Limit (Employee / Employer)(Increased from $8,300 in 2024)
    $8,550
  • Catch-up Contribution Limit (Employee / Employer)(Unchanged from 2024)
    $1,000

Pension Plans

  • Contribution Limit - 401(k) & 403(b) plans (Increased from $23,000 in 2024)
    $23,500
  • Catch-up Contribution Limit - 401(k) & 403(b) plans (age 50 or older) (Unchanged from $7,500 in 2024)
    $7,500

Massachusetts State Tax Facts

Massachusetts Minimum Wage - Minimum Wage

Effective 1/1/2023

  • Minimum Wage
    $15.00
  • Minimum Cash Wage (Tipped Employee)
    $6.75
  • Maximum Tip Credit
    $8.25

Massachusetts State Income Tax

  • Wage Withholding
    Tables
  • Supplemental Wage / Bonus Rate 5% for $1,083,150 annual or less, 9.0% for over $1,083,150 annual
    5% or 9%

Massachusetts Unemployment Insurance

  • Maximum 2025 Taxable Earnings (Unchanged from 2024)
    $15,000
  • Employee 2025 Deduction
    None
  • Employer 2025 Tax Rates (Plus 0.67% solvency assessment, 0.056% workforce training fund, and a COVID-19 Recovery Assessment equal to 25.30% of Employer's UI Experience rate)
    0.83 - 12.65%
  • Standard 2025 New Employer Rate (Plus 0.67% solvency assessment, 0.056% workforce training fund surcharge, a COVID-19 Recovery Assessment equal to 25.30% of Employer's UI Experience Rate)
    2.13%
  • Employer Medical Assistance Contribution 2025 Rates (0.12% fourth year of liability; 0.24% fifth year of liability; and 0.34% sixth year or later of liability)
    0.12 - 0.34%
  • Voluntary Contribution Permitted
    Yes
  • Workforce Training Fund 2025 Rate
    0.056%

Massachusetts Disability Insurance

  • Paid Family Leave Insurance - Employee 2025 Family Deduction (Wage Base -$176,100)
    0.18% of employee's wages
  • Paid Family Leave Insurance - Maximum Employee Family 2025 Deduction
    $316.98
  • Paid Family Leave Insurance - Employee 2025 Medical Deduction (Wage Base -$176,100)
    0.28% of employee's wages
  • Paid Family Leave Insurance - Maximum Employee Medical 2025 Deduction
    $493.08

Local Income Taxes Imposed: No

FAST WAGE AND TAX FACTS is distributed with the understanding that the publisher is not rendering legal, accounting, tax or other professional services. If legal advice or other assistance is required, an attorney, CPA or tax adviser should be consulted. Minimum wage rates may vary by industry and may be superseded by Federal minimum wage rules. Contact the proper agency to verify.

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