Social Security and Medicare Taxes for 2021
October 22, 2020
The Social Security wage base will rise to $142,800 in 2021 from $137,700 in 2020. This means that the first $142,800 of an employee's taxable wages are subject to Social Security taxes. An employee and the UW will each pay 6.2% on taxable wages up to $142,800.
An employee's entire taxable salary is subject to Medicare tax. Both the UW and the employee pay 1.45% on all taxable compensation. Further, any taxable wages that exceed $200,000 ($250,000 for married couples filing jointly) are subject to an additional 0.9% tax. There is no employer match for additional Medicare tax.
Source: UW-Shared Services
Categories: Tax