Payroll News

With each year comes legislative changes that could affect your payroll. To ensure your payroll is accurate and that you remain compliant, it’s important to keep up with the latest federal, state and local requirements. Here’s some of the major changes impacting the payroll world in 2021.

Paycheck Protection Program (PPP) loans

As you may have heard, Congress approved a $900 billion COVID relief package, which includes $284.45 billion in additional funding for the Paycheck Protection Program (PPP). PPP loans are forgiven if funds are used for eligible expenses, including payroll, rent or mortgage interest, utilities, and personal protection equipment and supplies.

Minimum wage rates

Federal minimum wage will stay at $7.25 in 2021. However, many states have increased their rates to a level that’s higher than the federal minimum wage rate. Employers must comply with the highest applicable minimum wage — whether that’s the federal, state, county or city level — so be sure you’re aware of the laws that apply to you.

Social Security wage base

The Social Security wage base increased from $137,700 in 2020 to $142,800 in 2021. For annual salaries up to $142,800, both the employer and employee must pay a 6.2% Social Security tax, which is flat with 2020. Social Security tax rates are automatically updated in our Payroll system to ensure that the correct calculations and withholdings occur.