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

Dec. 28, 2020, 6:02 PM

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...

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