2021 Wage Cap Rises for Social Security Payroll Taxes

Industry Update November 5, 2020 Print this Article

On October 13, the Social Security Administration (SSA) announced, starting January 1, 2021, the maximum earnings subject to the Social Security payroll tax will increase by $5,100 to$142,800 up from the $137,700 maximum for 2020. The SSA also posted a fact sheet summarizing the 2021 changes.

Next Steps for Employers

Employers should notify affected employees and ensure that their payroll systems are setup to account for the higher taxable wage base for Social Security payroll tax.

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