2019 Mileage Rate, Minimum Wage and 401(k) Limit Updates

Annual Payroll and Withholding Update Part 1 of 5

In 2019, Missouri employers will see a $0.75 minimum wage increase, while Illinois minimum wage remains $8.25. 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 2019 will be 58 cents per mile for business travel.  The 2019 rate for medical travel and moving costs will be 20 cents per mile.  The charitable mileage rate will remain at 14 cents per mile.

Minimum Wage

The Missouri minimum wage will increase to $8.60 per hour in 2019.

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 2019 will increase to $19,000.  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 will increase to $13,000 in 2019.  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.

Read Part 2 of the Annual Payroll and Withholding Update.
Read Part 3 of the Annual Payroll and Withholding Update.
Read Part 4 of the Annual Payroll and Withholding Update.
Read Part 5 of the Annual Payroll and Withholding Update.