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January 22, 2021
2021-0087

Our US employment tax rates and limits publication is now available for 2021

We are pleased to announce that our annual publication of key federal and state rates and limits is updated for 2021.

You can download the publication by clicking on the PDF attachment at the bottom of this alert.

Our report, US employment tax rates and limits for 2021 (rev. 1-21-2021), includes:

  • Social Security wage base for 2021           
  • Qualified pension plan limits for 2021       
  • Health Savings Account limits for 2020 and 2021
  • Fringe-benefit inflation adjustments and Form W-2 penalties for 2021
  • Federal mileage rates and luxury vehicle limit for 2021  
  • Per diem rates under high-low substantiation method for 2021
  • 2020 FUTA credit reduction
  • State unemployment insurance wage base limits for 2019 through 2021
  • Disability and paid family leave insurance wage base and rates for 2021         
  • Federal income tax withholding for 2021
  • State income tax withholding tables and supplemental withholding rates for 2021 

Note that federal and state rates and limits can change throughout the year. Follow us throughout the year for updates.

For the 2019 final rates and limits, view our publication, US employment tax rates and limits for 2019.

For the 2020 final rates and limits, view our publication, US employment tax rates and limits for 2020.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)

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ATTACHMENTS

EY Payroll News Flash

Employment Tax Rates and Limits for 2021

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

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