Payroll by the Numbers: Key Tax-Related Amounts for 2021

Most of the amounts that payroll professionals are to use in 2021 have been made available by the Internal Revenue Service and other federal agencies.

This guide serves as a reminder for payroll departments of key federal thresholds and required amounts for 2021.

Threshold Amounts

•$142,800—the 2021 wage base for the Social Security program, also known as the Old-Age, Survivors, and Disability Insurance program, up from $137,700 in 2020.

•$19,500—the limit for tax-deferred employee contributions to a Section 401(k), 403(b), or 457 plan for 2021, unchanged from 2020.

•$6,500—the catch-up contribution limit to a Section 401(k) plan for those 50 ...