What's In Store For Payroll In 2021 

What's In Store For Payroll In 2021

Feb 12, 2021

Aatrix Feb 2021 What's In Store For Payroll In 2021.png

 

While We Don’t Know All The Changes That We’ll See To Payroll in 2021 - Here Is What We Know So Far!

After an unpredictable 2020, there will almost certainly be new legislation, executive orders, and routine changes throughout 2021. 

Changes already released for the first quarter include: 

  • Limits To Social Security & Medicare Taxes
  • Limits To Health Savings Accounts & High Deductible Health Plans
  • Paycheck Protection Program & Other Relief Aid: How It Will Impact Your Business

Routine Changes To Social Security Rates And Limits

The Social Security Administration announced that the Social Security taxable wage base for 2021 is $142,800, slightly up from $137,700 in 2020. Social Security and Medicare tax rates remain the same for both the employer and employees: 

  • Social Security Rate: 6.2% of taxable wages
  • Medicare Tax Rate: 1.45% of taxable wages*

*Employees earning more than $200,000 for the year are still subject to an additional Medicare tax of 0.9%.

Limits To Health Savings Accounts and High-Deductible Health Plans

Type

2021 Limits

HSA (employee employer contributions)

Individual = $3,600 

Family = $7,200

HSA catch-up

$1,000

HDHP minimum deductibles

Individual = $1,400 

Family = $2,800

HDHP maximum out-of-pocket costs

Individual = $7,000 

Family = $14,000

Be Prepared For Paycheck Protection Program And Impact

Paycheck Protection Program (PPP) loans and other COVID-19 relief aid have kept businesses wondering what long-term impacts these programs will have on their organization. While these programs have been beneficial in keeping their doors open, the tax implications or obligations associated with these loans and grants have been challenging to track and understand. 

The tax implications around the PPP loans and other relief aid changed again in December of 2020 when the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) of 2021 passed. After the passage of the CRRSAA, Congress made it clear that a forgiven PPP loan is completely tax-exempt and is not considered taxable income. Businesses can also take advantage of the Employee Retention Tax Credit (ERTC) for both 2020 and 2021, as long as they don’t cover the same payroll expenses.

These and other payroll tax relief aid can be complicated; consult your financial professional for additional guidance.

It is almost certain that there will be more changes ahead, at both the Federal and State levels, as businesses navigate this new pandemic environment.

 





Category List


Tag List

I-9 (3)
Company Of The Year (1)
Technology (3)
Innovation (2)
SSA (2)
Sick Leave (2)
Tax (2)
Sage 300 CRE (1)
exempt employee (2)
IRS Form 941 (3)
EEO-1 (3)
Assessment (4)
IRS 1099 NEC Form (2)
eFile (6)
Penalties & Fines (1)
W-2 (15)
w-4 (2)
Growth (1)
Cryptocurrency (2)
Enterprise (2)
ACA Reporting (5)
Top 10 (3)
Travel During Covid (1)
SUI (1)
COVID-19 (8)
remote office (2)
Employee Benefits (1)
eFiling (3)
Federal Taxes (1)
ACA Compliance (3)
Review (2)
Millennials (2)
Tax Return (2)
nonexempt employee (2)
Form 941 (3)
American Rescue Plan (1)
IRS Form W-3C (1)
interest rates (1)
Aatrix Software (10)
B-Notice (2)
TUG (1)
PTO Payout (1)
Rebranding (1)
Travel Expenses (1)
ACA eFiling (4)
1099 (12)
Employee Retention Credit (2)
CA Pay Data Report (1)
Federal (1)
work from home (1)
Families First Coronavirus Response Act (1)
Sage Solutions (1)
CV Magazine (1)
State (1)
1094-C (2)
Helpful Hints (1)
Payroll Tax Reporting (12)
Improvements (1)
1095-B (4)
IRS 7200 Form (1)
Employee Travel (1)
Top Software (1)
Sage Summit 2015 (1)
Affordable Care Act (3)
minimum wage (3)
Withholding (5)
Sponsorship (1)
Tax Identification Number Verification (2)
Payroll Reports (18)
IRS Forms (1)
IRS Form 941 Changes (2)
Accounting Solutions (2)
1099-MISC (3)
IRS Notice 931 (1)
Recruiting & Retention (4)
Payroll (24)
ACA e-filing (3)
Awards (1)
Mac (1)
Tax Payments (1)
Aatrix eFile (10)
1099 NEC (7)
941 (8)
Initiatives (1)
Aatrix (7)
Employee Documentation (2)
Payroll Taxes (5)
employee retention (4)
Safe eFiling (1)
CIO Review (3)
vaccine (2)
Inflation (1)
eFiling Thresholds (3)
ACA 1095 C&B requirements (3)
TIN Matching Services (7)
Deposit Schedule (1)
covid (2)
SSA Notice (2)
HFSA (1)
Top 100 (2)
Gig Economy (1)
Ultimate Payroll (1)
Payroll Tax Relief (1)
Workplace Efficiencies (1)
1094-B (2)
State Payroll Reports (3)
IRS (5)
unemployment (6)
Per Diem (1)
CP2100 (6)
e-File (1)
Payroll Tax Forms (5)
1095 (6)
940 (1)
Biometrics (1)
Employee Tax Credits (1)
Payroll Solution (6)
IRS 7200 Tax Form (1)
Accountant Shortage (1)
Electronic W-2 (1)
IRS Notice (5)
Business Travel (1)
employees (3)
Paycheck Protection Program (1)
Sage Summit (2)
2020 IRS Form W-2 (2)
IRS Form 941 & 940 changes (3)
Solutions (2)
TIN Matching (7)
FUTA (1)
1099-PATR (2)
Payments (1)
EFTPS (1)
SUTA (1)
Small Business (2)
New Hire Reporting (3)
Payroll Tax Notice (2)
HIPAA (4)
Filing (1)
SOC2 (4)
HR (1)
employee classification (2)
Tax Free (1)
IRS Form 1099 (3)
Medical Leave (1)
Economic Security Act (1)
Security (6)
Coronavirus Aid (2)
Future (1)
OEM Payroll (2)
payroll reporting changes (2)
Fraud (2)
Windows (3)
Social Security Wage Base (2)
Social Security Tax Deferral (1)
1099-INT (2)
Coronavirus (2)
Venmo (1)
1099-K (4)
Paypal (1)
Payroll Reporting (14)
Reports (1)
irstaxtip (1)
IRS Form 1099 NEC (3)
Standard Mileage Rate (1)
Medicare Tax (1)
State FMLA (2)
IRS Regulations (1)
1099 TIN Matching (6)
ACA (8)
Paycheck (2)
Taxes (2)
Social Security Withholding (3)
Virtual Currency (1)
Sage Solutions Provider (1)
Top 50 (1)
overtime (1)
Social Security Number Verification (3)
Reporting (1)
FMLA (3)
Paycard (1)
Aatrix Software, Inc. (5)
1099-G (5)
Sage Summit 2014 (1)
IRS Tax Forms (2)
SMBs (1)
Certified Payroll Reports (1)
Cloud (1)
Sage (1)
Compliance (5)
Payroll Tax Rates (1)
Tax Identification Number (2)
Dependent Care (1)
The Families First Coronavirus Response Act (1)
Quarterly Reports (1)
941-X (1)
Payroll Compliance (6)
CV Technology Innovator Awards (1)
New Logo (1)
HSA (1)
Retirement Contribution Limits (1)
Forms (1)
workplace dynamics (2)
Family Medical Leave Act (2)
independent contractors (1)
Infrastructure (1)
Staff (1)
CIO (3)
Student Loan Relief (1)
Web Forms (1)
Solution (3)
Human Resource (1)
1095-C (4)
Federal Payroll Reports (2)
Paid Leave (1)
Year-End Deadlines (2)
Technology Companies (2)
IRS 941 Form (2)
cyber attacks (1)
Child Tax Credit (2)
SOC3 (2)
e-Filing (1)
Payroll Software (7)
Secure eFiling (2)
Payroll Tax (7)
IRS Form W-2 (6)
Corrections (2)
Accounting Solutions Provider (2)
Labor Shortage (1)
IRS Form 7200 (1)
1099 G (1)

Tag Cloud

Social Security Number VerificationTop 100Payroll Software1099-MISCACA ReportingStudent Loan ReliefDeposit SchedulePayroll Tax RatesFutureSage 300 CREemployee classificationPaymentspayroll reporting changesAatrix SoftwareIRS 7200 FormSocial Security Tax DeferralCIOFederal TaxesYear-End DeadlinesCOVID-19TaxLabor ShortageSolutioninterest rates1095-BCoronavirusCA Pay Data ReportAffordable Care ActPenalties & FinesCoronavirus AidIRS Form 941InitiativesEmployee TravelState FMLARecruiting & RetentionSage SolutionsFamily Medical Leave ActNew Hire ReportingIRS Form W-2BiometricsEmployee DocumentationFamilies First Coronavirus Response Actnonexempt employee1099 TIN MatchingSage Summit 2015CIO ReviewMedicare TaxEFTPSAatrix Software, Inc.AatrixPaycardSSATIN Matchingindependent contractorsTax ReturnIRS Form 7200Virtual CurrencyIRS FormsirstaxtipIRS Notice 931Medical LeaveCryptocurrency940AssessmentSSA NoticeIRS Form 941 & 940 changesTechnologyImprovementsReportseFilew-4ACAeFiling ThresholdsStandard Mileage RateQuarterly Reports1099 NECGrowth1099Small BusinessFederalAwardsSage Solutions ProviderWorkplace EfficiencieseFilingRetirement Contribution LimitsCV Technology Innovator AwardsSecurity1099-KSage Summit 2014covid1099-GHIPAAACA 1095 C&B requirementsWithholdingWeb FormsunemploymentMacSponsorshipPaypalPayroll Tax FormsPayrollDependent CareComplianceVenmoOEM PayrollSafe eFilingIRS Form 1099Helpful HintsPayroll ReportsTop 10cyber attacksTop 50Form 941Social Security Wage BaseTax Identification NumberReporting1094-CSageState Payroll Reports1099-PATRSUII-9TUGwork from homeUltimate PayrollHRNew LogoPayroll SolutionMillennialsTechnology CompaniesHuman ResourceChild Tax CreditvaccineBusiness Travel941-X1099 GSocial Security WithholdingCertified Payroll ReportsPayroll ReportingACA eFilingSMBsEmployee Retention Creditworkplace dynamicsFUTATax Identification Number VerificationFMLAPayroll TaxTIN Matching Servicesexempt employeeSOC3IRS 941 FormStaffremote officeTax FreeAccountant Shortage1095-CTaxesPer DiemPayroll ComplianceAmerican Rescue Planemployeese-FilingAccounting Solutions2020 IRS Form W-2minimum wageIRS 1099 NEC FormReviewTravel ExpensesIRS Form W-3Cemployee retentionPayroll Tax ReliefEmployee Tax Credits941SolutionsSOC2IRS Tax FormsElectronic W-2Payroll Tax NoticeW-2InflationIRS Form 941 ChangesRebrandingInfrastructureSick LeaveEmployee BenefitsEconomic Security ActovertimePaycheckPayroll Tax ReportingIRSInnovationCloudPayroll TaxesWindowsThe Families First Coronavirus Response ActAatrix eFileFiling1099-INT1095CV MagazineB-NoticeFraude-FileSage SummitCP2100HSAHFSAAccounting Solutions ProviderEnterprisePTO PayoutEEO-1Federal Payroll ReportsTop SoftwareCompany Of The YearSUTAIRS RegulationsTravel During CovidCorrectionsIRS Form 1099 NEC1094-BGig EconomySecure eFilingFormsIRS 7200 Tax FormPaycheck Protection ProgramTax PaymentsACA e-filingACA ComplianceIRS NoticeStatePaid Leave


Archive