2027 Employer Quick Reference: Payroll Taxes, Benefit Limits & Important Dates

Updated November 2026

A new year means new payroll tax thresholds, employee benefit limits, and important reporting deadlines. For employers, staying ahead of these changes is essential to accurate payroll processing, benefits administration, and compliance.

To make planning easier, CTR Payroll | HR has compiled a 2027 Employer Quick Reference with the key numbers and deadlines employers need to know.

From the increased Social Security wage base to updated Health Savings Account (HSA) limits, here's what should be on your radar as you prepare for 2027.

2027 Payroll Tax Rates and Limits

One of the most significant payroll changes for 2027 is the increase in the Social Security taxable wage base.

The Social Security Administration has announced that the wage base will increase from $184,500 in 2026 to $192,300 in 2027.

This means employers and employees will pay Social Security taxes on a higher amount of earnings.

What Employers Need to Know

The higher Social Security wage base increases the maximum Social Security tax to $11,922.60 each for employees and employers.

Medicare taxes continue to apply to all covered wages, without an annual wage cap.

Employers must also withhold the additional 0.9% Medicare Tax when an employee's wages exceed $200,000 during the calendar year. There is no corresponding employer match for this additional tax.

For FUTA, the effective rate is generally 0.6% when the employer qualifies for the full state unemployment tax credit. Credit reductions may apply.

Employer action: Verify that payroll tax settings reflect the 2027 Social Security wage base and applicable withholding requirements before processing the first payroll of the new year.

Related reading: 2027 Social Security Wage Base: What Employers Need to Know

2027 Health Savings Account (HSA) Contribution Limits

Employers offering HSA-eligible high-deductible health plans should review the updated contribution limits for 2027.

These limits generally include both employer and employee contributions.

For employees age 55 or older who are otherwise eligible, an additional $1,000 catch-up contribution is permitted.

Employer action: Review employee HSA elections, employer contributions, and payroll deductions to ensure contributions remain within the applicable annual limits.

2027 Educational Assistance and Dependent Care Benefits

Employee benefits are another important area to review before the new year.

Employer-Provided Educational Assistance: $5,400

For 2027, the tax-free exclusion for qualifying employer-provided educational assistance is $5,400.

Qualifying educational assistance programs can help employers support employee development while providing valuable tax benefits, subject to applicable requirements.

Employers offering educational assistance should review their program documents and payroll treatment.

Dependent Care Assistance: $7,500

The general annual dependent care assistance exclusion is $7,500, subject to applicable filing-status, earned-income, and other restrictions.

For employers offering dependent care flexible spending accounts, this is an important limit to review during benefit enrollment and payroll setup.

Employer action: Confirm that benefit elections, payroll deductions, and plan documents align with the applicable limits and eligibility requirements.

2027 Retirement Contribution Limits

Retirement plan contribution limits are another important part of annual payroll and benefits planning.

Employers sponsoring 401(k), 403(b), or other retirement plans should review the official IRS limits before updating employee contribution elections.

The IRS periodically adjusts these limits for inflation. Employers should also review applicable catch-up contribution rules and any plan-specific requirements.

CTR will update this section as the official 2027 retirement contribution limits are confirmed.

Important Federal Payroll Filing Deadlines in 2027

The beginning of 2027 brings several important deadlines for reporting 2026 wages and employment taxes.

The February 10 extension for Forms 940 and 941 generally applies when all applicable employment taxes were deposited on time and in full.

These dates reflect general federal filing requirements. Employers should also review applicable state and local reporting obligations.

Don't Overlook Qualified Overtime and Tip Reporting

Employers should pay particular attention to reporting requirements involving qualified overtime compensation and qualified tips under the One Big Beautiful Bill Act (OBBBA).

As employers prepare 2026 Forms W-2, it's important to confirm that payroll records contain the information necessary to meet applicable reporting requirements.

Employer action: Review year-end payroll data, employee information, taxable benefits, and reporting requirements before filing deadlines arrive. Review our OBBBA Resource Page.

Your 2027 Employer Payroll and HR Checklist

Preparing for the new year involves more than updating tax tables. Employers should take time to review the processes and information that support accurate payroll and HR administration.

Here are five priorities to address:

1. Verify 2027 payroll tax settings.

Confirm the updated Social Security wage base, Medicare withholding requirements, FUTA settings, and applicable state and local payroll taxes.

2. Review employee benefit deductions.

Check HSA contributions, dependent care assistance, educational assistance, and other benefit deductions for accuracy.

3. Confirm your 2027 payroll calendar.

Review your actual pay-date schedule and determine whether an additional weekly or biweekly pay period applies. If so, consider how it may affect employee deductions, benefit contributions, and payroll budgeting.

4. Review requirements wherever employees work.

Employers operating across multiple locations should review applicable federal, state, and local payroll and HR requirements, including wage and hour rules, leave requirements, and employment verification obligations.

5. Prepare for year-end reporting.

Review employee records, taxable fringe benefits, qualified overtime and tip information, and applicable Forms W-2 and 1099 reporting requirements.

Taking these steps before the new year can help reduce last-minute corrections and keep payroll and HR processes running smoothly.

Download CTR's 2027 Employer Quick Reference

Want all these important numbers and dates in one convenient place?

We've created a one-page 2027 Employer Quick Reference that you can print, keep at your desk, or share with your payroll, HR, and finance teams.

Download the 2027 Employer Quick Reference

Start 2027 Prepared with CTR Payroll | HR

Keeping up with changing payroll tax limits, employee benefits, reporting deadlines, and compliance requirements can be a challenge, especially when you're managing everything else that comes with running an organization.

At CTR Payroll | HR, we combine comprehensive payroll and workforce management technology with the personalized service of a dedicated support representative who understands your business.

From payroll and tax administration to benefits, HR, and workforce management, we're here to help you stay organized, informed, and prepared for what's next.

Ready to make payroll and HR easier in 2027?

Connect with CTR Payroll | HR to learn how we can support your organization.

This article is provided for general informational purposes and does not constitute legal or tax advice. Employers should verify current IRS guidance, plan requirements, and applicable federal, state, and local regulations.