Welcome to 2025! Here’s a quick overview of IRS 2025 mileage rates, changes to minimum wage laws in Delaware and New Jersey, and a reminder to review your W-4 for the new year.
2025 IRS Mileage Updates
According to the IRS, the standard mileage rates for 2025 (effective January 1, 2025) are:
- 70 cents for every mile driven for business use
- 21 cents for every mile driven for medical or moving purposes (for qualified active-duty members of the Armed Forces)
- 14 cents for every mile driven in service of charitable organizations (unchanged)
Tip: Consider using an app like MileIQ (or a similar mileage-tracking tool) to keep accurate records of your mileage throughout the year—no more guesswork at tax time.
Check Your 2025 W-4
As the new year begins, it’s a good practice to review and, if needed, update your federal income tax withholdings by conducting a “Paycheck Check-up.” Staying proactive with your withholdings helps prevent unexpected surprises during 2025 tax season. You can access the most recent version of the Form W-4 here.
Use the IRS Tax Withholding Estimator on their website to gauge whether you need to adjust your withholdings.
Minimum Wage Updates for New Jersey and Delaware in 2025
New Jersey
Starting January 1, 2025, New Jersey’s minimum wage will increase from $15.13 to $15.49 per hour for most employees, marking an hourly rise of $0.36. Special categories such as agricultural workers and long-term care facility staff will see tailored increases, with agricultural wages rising to $13.40 per hour and direct care workers earning $18.49 per hour. Employers must also note that the minimum cash wage for tipped employees will increase to $5.62 per hour, with employers ensuring the total compensation meets or exceeds the state’s minimum wage standards.
Delaware
Delaware’s minimum wage increases from $13.25 to $15.00 per hour as of January 1, 2025. However, exemptions still apply to certain employee categories, including:
- Agriculture
- Domestic service in private households
- U.S. Government employees
- Sales personnel receiving outside commission
- Executives, Administrators, and Professionals
- Employees in fishing and fish processing (while at sea)
- Volunteer workers for educational, religious, or non-profit organizations
- Junior Camp Counselors at non-profit summer camps
- Inmates in Department of Correction work programs
Tipped employees in Delaware must receive a minimum cash wage of $2.23 per hour, with tip pooling allowed under certain conditions, not exceeding 15% of the tips earned, and employers cannot retain tips unless required by law.
Stay Compliant and Informed in 2025
We are here to keep you informed and take the stress out of payroll. If you have any questions about these updates or any other payroll or accounting matter, please don’t hesitate to call 215-723-4881 or contact us online.