Employers surveyed by WTW expect health profit costs to rise at the least 6 percent next 12 months, and to proceed going up for several years because health care providers typically sign multiyear contracts with health insurers.
“It’s not over after this 12 months,” Dr. Levin-Scherz said.
Greater than half of Americans get health coverage through an employer. Staff on average pay greater than 1 / 4 of the entire premium for family health coverage, while employers pay the remaining. Employers may shift more of that cost to employees — but probably not all of it, since recruiting and retaining staff remain difficult.
“I’m advising my employer clients to eat the health care costs,” said Allen J. Reynolds, a tax adviser in Sioux City, Iowa. Staff are already struggling to administer costs, he said, including higher mortgage rates, which make it difficult to purchase a house: “The worker is getting hit from all different angles.”
Contributions to 401(k)s
Contribution limits for 401(k)s are expected to extend nearly 10 percent over this 12 months’s $20,500, although the rise hasn’t been officially announced. (Extra contributions for employees 50 and older are projected to extend as well.) These contributions are deducted out of your paycheck — but they go into accounts to provide help to fund your retirement, and employers often match them to encourage saving.
Contributions to health spending accounts
Inflation has increased those amounts as well. If you will have a versatile health spending account, which employees contribute to pretax to assist cover medical costs, you may contribute an additional $200 next 12 months. The limit for 2023 rose to $3,050 from $2,850 this 12 months, the I.R.S. announced this week.
If you will have a health savings account, a special form of tax-favored account available with certain high-deductible medical health insurance plans, you may contribute $3,850 as a person and $7,750 for family coverage next 12 months. (Extra contributions for people over 55 remain capped at $1,000.)
With so many variables, it is sensible to ascertain your withholdings early next 12 months to ensure that they usually are not too high or too low, especially if you will have had a life change, like getting married or having a baby, Mr. Reynolds said. In the event you overpay, you’ll get a refund at tax time. In the event you underpay, you could owe a penalty.
The I.R.S. offers an internet withholding estimator to provide help to make the calculations. You’ll be able to make changes by submitting a revised W-4 form to your employer.