Now that the new year is in full swing, both employers and employees need to prepare for payroll dates and deadlines.
To help you stay up to date, here are some important payroll reminders for 2021:
With the new year comes new contribution limits. Here are the new limits for 2021:
Social Security wage base limit $142,800, tax rate 6.2%
Medicare wage base up to $200,000, tax rate 1.45%
Additional Medicare more than $200,000, tax rate 0.9%
Supplemental Tax rate: 22%
401K Contributions / 50+ Catch Up: $19,500/ $6,500 per year
NY Paid Family Leave. Annual maximum for 2021 is $385.34
Be sure to complete an updated Form W-4 if you'd like to change your tax allowances for the new year. We recommend reviewing the form every year—especially after life events.
IRS Withholding Calculator
The Tax Cuts and Jobs Act (TCJA) made major changes to the tax law. Because of this, the IRS has recommended that employers encourage their employees to do a paycheck checkup using the Withholding Calculator on the IRS.gov. The calculator will help determine the right amount of withholding and can help prevent having too little, or too much, tax withheld.
Is your company still working from home? If so, check out our recent blog post to learn what the ramifications are when it comes to payroll and tax compliance.
See how Namely's flexible solution will help you streamline your HR processes by having your people, payroll, and benefits info all in on place.