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Payroll 2015: What you need to know now

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Increases to the personal exemption amount, which doubles as the annual withholding allowance amount, are based on increases to the August Consumer Price Index. Here are the crucial payroll figures you need now. (Rev. Proc. 2014-61, IRB 2014-47).

2015 withholding allowance amounts. Employees may claim zero allowances or any number of allowances on their W-4s. If they claim more than one allowance, multiply the value of one allowance by the number they’ve claimed. The value of one allowance per pay period in 2015 is:

  • Weekly:     $76.92
  • Biweekly:     $153.85
  • Semimonthly:     $166.67
  • Monthly:     $333.33
  • Quarterly:     $1,000.00
  • Semiannual:     $2,000.00
  • Annual:     $4,000.00

Qualified transportation fringes. The monthly tax-free reimbursement for qualified employer-provided parking remains $250; the monthly tax-free exclusion for mass transit benefits and rides in commuter vehicles remains $130. Bicycle fringes are $20 a month, and can’t be funded on a pretax basis.

Health benefits. The salary limit for the 50% small employer tax credit increases to $25,800, up from $25,000. The maximum pretax amount employees can salt away in their health flexible spending accounts increases to $2,550, up from $2,500.


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