2017 Mileage Rate, Minimum Wage and 401(k) Limit Updates
Annual Payroll and Withholding Update Part 1 of 5
This year, Missouri employers will see a $0.05 minimum wage increase and a $0.05 decrease for business miles. Mileage rate, minimum wage amounts and 401(k) limits and thresholds are outlined below in Part 1 of the Anders Annual Payroll and Withholding Update.
Standard Mileage Rate
The standard mileage rate for 2017 will be 53.5 cents per mile for business miles. The 2017 rate for medical travel and moving costs will be 17 cents per mile. The charitable mileage rate will remain at 14 cents per mile.
The Missouri minimum wage will increase to $7.70 per hour in 2017. The Illinois minimum wage remains $8.25 per hour.
Employees under the age of 20 can continue to be paid $4.25 per hour during their first 90 consecutive calendar days of employment with an employer except where a higher state or local minimum wage standard applies. Employers of “tipped employees” must comply with minimum wage laws, but can claim a tip credit against their minimum wage obligation.
401(k) Elective Deferral Limits, SEP and SIMPLE Plan Thresholds
The limitation on 401(k) elective deferrals in 2017 remains unchanged at $18,000. The catch-up contribution limit for employees aged 50 and over who participate in the 401(k) remains unchanged at $6,000.
The compensation an eligible employee must have in order to be a SEP participant remains unchanged at $600.
The maximum employee salary reduction contribution to a SIMPLE plan remains unchanged at $12,500. The catch-up contribution limit for individuals aged 50 and over who participate in the SIMPLE plan remains unchanged at $3,000.
Contact an Anders advisor with any questions on how these amounts affect you.