On October 13, the Social Security Administration (SSA) announced that the 2021 social security wage base will be $142,800, which is an increase of $5,100 from $137,700 in 2020 [SSA, Press Release, 10-13-20].
Maximum social security tax. The FICA tax rate remains 7.65% for 2021 up to the social security wage base (see the Social Security Fact Sheet: 2021 Social Security Changes). The maximum social security tax employees and employers will each pay in 2021 is $8,853.60, an increase of $316.20 from $8,537.40 in 2020.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.