Payroll Taxes: Rates and Changes
Find out the latest on payroll tax rates and
changes and how they may affect your
business so you can maintain compliance.
A list of 2021 scheduled limitation adjustments and tax provision changes have not yet been announced. APS will update this page once they are announced.
FICA Rate and Wage Bases
Updated 09/29/20
The Social Security Tax Wage Base is projected to rise to $141,900 for 2021. The FICA contribution rate is 6.2%. For the Medicare (HI) portion of the FICA taxes, there is no wage base and all wages earned are subject to the HI tax, which is also paid by employers and employees. Each pays at a 1.45 percent rate, although employees pay an additional 0.9 percent on wages greater than $200,000 for individuals, $250,000 for married couples filing jointly, and $125,000 for married couples filing separately. It is estimated there will be a 1.1 percent cost-of-living adjustment (COLA) adjustment for 2021, affecting several thresholds for benefits and coverage.
2021 FUTA Credit Reductions
Updated 09/29/20
2021 FUTA credit reduction states have not yet been announced. APS will update this page once they are.
2021 SUTA Wage Bases
Updated 09/29/20
- Iowa: $31,600 to $34,000
- Montana: $34,100 to $35,300
- Nevada: $32,500 to $33,400
- New Jersey: $35,300 to $36,200
- Oklahoma: $18,700 to $24,000
Married Filing Jointly and Surviving Spouses
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not over $19,750 | 10% of the taxable income |
| $19,751-$80,250 | $1,975 plus 12% of the excess over $19,750 |
| $80,251-$171,050 | $9,235 plus 22% of the excess over $80,250 |
| $171,051-$326,600 | $29,211 plus 24% of the excess over $171,050 |
| $326,601-$414,700 | $66,543 plus 32% of the excess over 326,600 |
| $414,701-$622,050 | $94,735 plus 35% of the excess over $414,700 |
| Over $622,050 | $167,307.50 plus $37% of the excess over $622,050 |
Heads of Households
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not over $14,100 | 10% of the taxable income |
| $14,101-$53,700 | 1,410 plus 12% of the excess over $14,100 |
| $53,701-$85,500 | $6,162 plus 22% of the excess over $53,700 |
| $85,501-$163,300 | $13,158 plus 24% of the excess over $85,500 |
| $163,301-$207,350 | $31,830 plus 32% of the excess over $163,300 |
| $207,351-$518,400 | $45,926 plus 35% of the excess over $207,350 |
| Over $518,400 | $154,793.50 plus $37% of the excess over $518,400 |
Unmarried Individuals
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not over $9,875 | 10% of the taxable income |
| $9,876-$40,125 | $987.50 plus 12% of the excess over $9,875 |
| $40,126-$85,525 | $4,617.50 plus 22% of the excess over $40,125 |
| $85,526-$163,300 | $14,605.50 plus 24% of the excess over $85,525 |
| $163,300-$207,350 | $33,271.50 plus 32% of the excess over $163,300 |
| $207,351-$518,400 | $47,367.50 plus 35% of the excess over $207,350 |
| Over $518,400 | $156,235 plus $37% of the excess over $518,400 |
Married Filing Separately
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not over $9,875 | 10% of the taxable income |
| $9,876-$40,125 | $987.50 plus 12% of the excess over $9,875 |
| $40,125-$85,525 | $4,617.50 plus 22% of the excess over $40,125 |
| $85,526-$163,300 | $14,605.50 plus 24% of the excess over $85,525 |
| $163,301-$207,350 | $33,271.50 plus 32% of the excess over $163,300 |
| $207,351-$311,025 | $47,367.50 plus 35% of the excess over $207,350 |
| Over $311,025 | $83,653.75 plus $37% of the excess over $311,025 |
Estates and Trusts
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not over $2,600 | 10% of the taxable income |
| $2,601-$9,450 | $260 plus 24% of the excess over $2,600 |
| $9,451-$12,950 | $1,904 plus 35% of the excess over $9,450 |
| Over $12,950 | $3,129 plus 37% of the excess over $12,950 |
Withholding
Updated 09/29/20
- Beginning with the 2020 Form W-4, withholding allowances are no longer being used. This change is meant to increase transparency, simplicity, and accuracy of the form. For more information, see the IRS' Publication 15-T Federal Income Tax Withholding Methods and the FAQs on the 2020 Form W-4.
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APS’s payroll tax compliance experts handle all of paperwork and filings for payroll taxes, keeping you in compliance:
- Preparation of your quarterly Tax Payments and filings
- System update of federal tax tables each year
- Year-end payroll processing assistance
The information on this page is subject to change at any time based on tax regulation updates. To stay current on payroll processing issues and payroll tax news. subscribe to the APS Blog.
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