It’s important to know about upcoming changes to tax laws and Nextep is here to make sense of them all and help you prepare for next year’s budget.
Here are the changes at a glance:
- Social Security wage base: First $142,800 of wages in 2021 (Was $137,700)
- FICA - Social Security (OASDI): 6.2%, up to the wage base
- FICA - Medicare: 1.45% up to $200,000, then 2.35% (Additional 0.9% paid by employee only)
- Unchanged 401(k) maximum deferral: $19,500, additional $6,500 catch up contribution for participants age 50+
- HSA contribution limit: 3,600 individual, $7,200 family (Was $3,550, $7,100)
- Unchanged FSA contribution limit: $2,750 FSA and LPFSA, $5,000 DCA
- Federal minimum wage: $7.25, use state wage if higher
- SUTA wage base: Download the state-by-state guide
- FUTA wage base: First $7,000 of wages in 2021
Consult with your financial advisor to find out what these changes will mean for you and your company. If you have additional questions, contact us online or call us at 888-811-5150.