2020 Payroll & Employer Updates

Changes in 2020 Payroll, Taxes and Employee Regulations

Brabo Payroll wants to make managing your payroll and all employee compliance as simple as possible…so we have compiled some of the biggest changes employers need to know for the coming year.

Massachusetts Minimum Wage Increased Rate for 2020

Minimum Wage in 2020 for Massachusetts Employees

The 2020 minimum wage in Massachusetts is $12.75/hour. This is a .75 cent increase from 2019. Minimum wage will continue to increase $0.75/year to reach $15 per hour in January 2023.

Minimum Wage in 2020 for Massachusetts TIPPED Employees

The minimum wage for tipped employees for 2020 is $4.95- a .60 cent increase from $4.35 in 2019. The tipped employee minimum wage rate will continue to go up $0.60/year to reach $6.75 per hour in January 2023.

Social Security Changes for 2020

Social Security Limit Changes

The limit on social security will rise from $132,900 to $137,700 in 2020.

Health Savings Account Changes for 2020

Health Savings Account Changes

Limits on Health Savings Accounts will increase in 2020:

  • Individual HSA’s will increase from $3,500 to $3,550 in 2020.
  • Family HSA’s will increase from $7,000 to $7,100 in 2020.
  • Catch up will stay at $1,000 in 2020.

FSA- Flexible Savings Account Changes for 2020

FSA Changes for 2020

Limit on Flexible Savings Accounts (FSA) Contributions will increase from $2,700 to $2,750 in 2020.

401K Contribution Changes for 2020

401K Contribution Changes for 2020

401K Contribution Limit increases from $19,000 to $19,500 in 2020.
Catch up will rise from +$6,000 to +$6,500 in 2020.

How Can Brabo Payroll Help?

Brabo Payroll, HR and Employee Benefits Experts will guide you through the compliance process and keep you updated with the many changes in these regulations. States may have their own FMLA and PFML (Paid Family Medical Leave) requirements.