The 2021 tax rates were recently announced. These are the rates for many of the Federal and State deductions in your paycheck. The 2021 tax rates are as follows:
The Social Security tax rate for employees is 6.2% through the end of 2021, with maximum taxable earnings of $142,800. (Source: Social Security Administration website.)
The Medicare tax rate is 1.45% with no maximum wage-base limit.
Please note that as of 2013, wages paid in excess of $200,000 to high-earner employees will be subject to an extra 0.9% Medicare tax that will be withheld from those employees’ wages.
Major changes in NJ Disability and Family Leave contributions for 2021 include:
- NJ Disability and Family Leave wage limit is increasing to 138,200 (from $134,900 in 2020).
- NJ Employee Disability rate will increase from .0026% to .0047%.*
- NJ Family Leave Act rate will increase from .0016% to .0028%.*
- NJ Unemployment wages will increase from $35,300 to $36,200. Rates will remain the same.
- PA State Personal Income Tax rate is 3.07%.
- PA State Unemployment Tax rate is .0006% on all wages.
- City of Philadelphia Wage Tax rate is 3.8712% for Philadelphia residents.
(*Rate changes will be effective with the January 22, 2021, paycheck. There will be a slight catch-up deduction from the first paycheck.)
Additional payroll tax information can be found on the Pulse under Departments/Finance/Payroll.