Welcome to 2024. Let’s look at what’s new for IRS mileage rates, your form W4, and the minimum wage.
IRS Mileage Updates for 2024
The IRS issued new standard mileage rates taking effect starting January 1, 2024:
- 67 cents for every mile driven for business use (an increase of 1.5 cents from 2023)
- 21 cents for every mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces (a one-cent decrease from 2023)
- 14 cents for every mile driven in service of charitable organizations (rate is unchanged from 2023)
Avoid the guessing game and consider using an app like MileIQ to keep track of your mileage throughout the year.
Check Your W4
It’s always a good idea to start each new year with a Paycheck Check-up to make sure your withholdings are set at the appropriate level. Doing so will help avoid any unpleasant surprises at tax time. Download the 2024 form W4 here.
Minimum Wage Updates for People Employed in New Jersey and Delaware
The minimum wage for qualifying employees in New Jersey will increase from $14.13 to $15.13 per hour. Consult this resource from the New Jersey Department of Labor for further information.
The minimum hourly wage in Delaware continues its incremental increase, with the 2024 amount increasing from $11.75 to $13.25, with continued exemptions for employees working in the following areas:
- Agriculture
- Domestic service in private households
- United States 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 working for non-profit summer camps
- Inmates in Department of Correction work programs
The protocol for tipped employees also remains as follows:
“The minimum cash wage payable to employees who receive tips is $2.23 per hour. Tips may not be taken or retained by an employer except as required by law. Tip pooling is permitted (under certain circumstances) in an amount not to exceed 15% of the actual tips received by the employee.”
We’re Here to Help
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.