At the beginning of every year, there are two critical numbers in tax-law provisions that are adjusted for inflation. The IRS and Social Security Administration usually release these figures in October. Unfortunately, at the time of writing this, these figures have yet to be released. However, knowing what those numbers are projected to increase sets your employees up for success when handling their finances for 2020.

The Social Security Wage Base is the maximum amount of income that employees must pay in taxes. An income level above a certain amount is not subject to Social Security Tax, which adjusts yearly due to inflation. For 2019, the wage cap was $132,900, which means you would have to hold a maximum of $8,239.80. For 2020, the wage cap is estimated to increase up to $136,800. This increase pushes the amount you need to save to $8481.60, so make sure your employees are aware of what they need to hold for tax season.

This year, employees can contribute up to $19,000 from their paychecks into their 401K retirement plan. This is a $500 increase from 2018, and its set to increase by another $500. The limit to your contributions as an employer in 2019 is $56,000, but this is also speculated to grow even more. It’s important to note that both limits increase by $6,000 for employees over 50.