FLEX News & Compliance


Compliance - IRS Publications

Compliance Notifications

Earned Income Tax Credit

By participating in a cafeteria plan, the participant will be lowering their income for the Earned Income Tax Credit (EITC). Check the new limits in IRS Publication 596 "Earned Income Credit" and for more information about this tax credit.

Social Security and Medicare Wage Base

For 2022, the Social Security wage base will increase to $147,000. The Social Security rate of 6.2% is applied to wages up to the maximum taxable amount for the year; the Medicare portion of 1.45% applies to all wages.

401(k) Plans

In 2022, the maximum for elective deferrals will remain at $20,500. The catch-up contribution for those 50 or older will also remain at $6,500. This means if you are age 50 or over during 2021 & 2022 taxable year, you may generally defer up to $27,000 into your 401(k) plan.

IRS Long-Term Care Maximum

2021 2022
For a qualified long-term care insurance policy, the maximum non-taxable daily amount. $400/day $390/day

IRS Publications/Notices