2021 FICA Wage Base Announced

10.14.2020 | The Social Security Administration just announced the new FICA wage base for 2021. The threshold will increase from $137,700 to $142,800 in 2021, an increase of 3.7%.The OASDI rate of 6.2%, as well as the Medicare threshold and rates, will remain the same. Meanwhile, Social Security benefits will increase by 1.3% in 2021.

On January 1, 2021, payroll departments and payroll companies must begin using the new base to calculate FICA withholdings and gross-ups. For more information, see the announcement.