Hello from the HR Herald! Today we’re featuring news on 401(k)s, minimum wages, and exemption status that will affect your employees in the new year. It’s important to be fully aware of these changes to help your employees make the best decisions for their retirement, and run your business following the appropriate compliant practices.

If you need any guidance or have questions regarding these updates, contact CornerstoneHR for all your needs!

IRS Announces 401(k) Contribution Limit for 2024

Starting next year, employees can contribute up to $23,000 to their 401(k), 403(b), most 457 plans, or the Thrift Savings Plan for federal employees—a $500 boost from 2023. The catch-up contribution limit for those aged 50 and older remains at $7,500.

Additionally, the combined employer-plus-employee contributions limit to defined contribution plans will rise to $69,000 in 2024, up from $66,000 in 2023.

For more details on these adjustments, check out Notice 2023-75PDF on IRS.gov.

Let’s make the most of these opportunities to boost our long-term savings. If you have any questions or need assistance, feel free to reach out to our team at Cornerstone HR!

Minimum Wage Increases in 2024

Be fully aware of Maryland’s minimum wage increase to $15.00 effective Jan 1, 2024! See the Department of Labor update below and find your state! It’s critical to stay up to date on these requirements!

Find your state’s minimum wage here.

Exempt Employees: Minimum Salary Requirements for 2024

The FLSA allows for exemptions from the federal overtime (and minimum wage) requirements for certain employees who work in administrative, professional and executive jobs (known as “exempt” employees). To be considered “exempt,” these employees must generally satisfy three tests: Salary-level test, Salary-basis test, and Duties test.

Learn more here.

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