The Social Security Administration (SSA) has announced that the 2021 Social Security wage base will be $142,800, an increase of $5,100 from the 2020 wage base of $137,700. The FICA tax rate will remain the same at 6.2% for the employee portion to match with the employer portion. The maximum Social Security tax that employees and employers will each pay in 2021 is $8,853.60. This is an increase of $316.20 from the 2020 maximum tax of $8,537.40.
There is no limit to wages subject to the Medicare Tax. All covered wages are still subject to the tax at 1.45%. When an employee reaches $200,000 an additional .9% of Medicare Tax will be withheld for the employee portion only. For State and Local Wage and Tax Information, please use this link.
If you have questions or require additional information, please contact the Penn Employee Solution Center at (215) 898-7372 or firstname.lastname@example.org.
2021 Tax Rates & Benefit Limitations
FICA Tax Rate
FICA Wage Base Limit: $142,800
Medicare Tax Rate
Employee Supplemental: 0.90% (on wages over $200K)
Pennsylvania State Tax Rate
Philadelphia City Wage Tax Rates
3.8398% – Effective July 1, 2021
3.8712% – July 1, 2020 to June 30, 2021
3.4481% – Effective July 1, 2021
3.5019% – July 1, 2020 to June 30, 2021