SR 24-02 Dated 01/24

STATE OF NEW HAMPSHIRE

DEPARTMENT OF HEALTH & HUMAN SERVICES - Bureau of family assistance (bfa)

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This Supervisory Release (SR) releases the updated figures for the 2024:

·      Withholding rates for Social Security FICA (Federal Insurance Contributions Act) and FIT (Federal Income Tax); and

·       FICA income ceiling.

FICA and FIT withholding rates are allowed in determining self-employment income for most programs and nursing facility and HCBC employment expense disregards. Employment expense disregards are based on allowable FIT and FICA withholding deductions.

POLICY

Social Security FICA

·     The 2024 FICA withholding rate for both employees and employers has not changed and will remain at 7.65%. This subdivides into 6.20% for the Social Security (OASDI) share and 1.45% for Medicare’s (HI) portion.

·    Self-employed individuals pay a FICA withholding rate of 15.3%. These individuals may deduct from income tax one half of the 15.3% paid for the year as a business expense. The actual rate becomes 7.65% after the deduction.

·      For employees and employers, the Medicare portion of the FICA rate is 1.45% on 100% of earned income; for a self-employed individual, the rate is 2.9% on 100% of earned income. 

FICA Income Ceiling

·    The income ceiling subject to the full FICA withholding rate has increased from $160,200 to $168,600.

·   There is no ceiling to the amount of gross earned income from which Medicare may be withheld.

FIT (Federal Income Tax)

District Offices use the IRS Publication 15 (Circular E) to determine the applicable federal income tax (FIT) withholding rate. As of January 1, 2024, the 2023 Circular E will be obsolete. Electronic copies of the January 2024 IRS Circular E will be sent to each District Office under separate cover when they are released by the IRS. 

Federal Minimum Wage

The 2024 Federal minimum wage, effective since 7/24/09, remains at $7.25 per hour.

NEW HEIGHTS & NH EASY SYSTEMS PROCEDURES

There are no changes to the New HEIGHTS system or NH EASY Gateway to Services.

POLICY MANUAL REVISIONS

Adult Assistance Manual Topics

PART 601, TABLE H              Federal Taxes, Income Ceilings, and Federal/State Minimum Wages

Section 603.03                        Employment Expense Disregard (EED)

Family Assistance Manual Topics

PART 601, TABLE H              Federal Taxes, Income Ceilings, and Federal/State Minimum Wages

Food Stamp Manual Topics

PART 601, TABLE H              Federal Taxes, Income Ceilings, and Federal/State Minimum Wages

Medical Assistance Manual Topics

PART 601, TABLE H              Federal Taxes, Income Ceilings, and Federal/State Minimum Wages

Section 603.03                       Employment Expense Disregard (EED)

IMPLEMENTATION

This policy is effective January 1, 2024.

CLIENT NOTIFICATION

No special client notification is planned or needed.

TRAINING

No special training is planned or needed.

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the Online Manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for BFA policy releases. This SR, and revised Online Manuals, will be available for agency staff in the Online Manual Library, and for public access on the Internet at https://www.dhhs.nh.gov/sr_htm/sr.htm, effective January 2, 2024.

BFA:es