The IRS has released the 2021 Publication 15-T, Federal Income Tax Withholding Methods, and the 2021 Form W-4, Employee’s Withholding Certificate. The 2021 Form W-4 has few changes and is very similar to the 2020 Form W-4.

As a result of the COVID-19 pandemic, several states are considering or have passed legislation or have issued executive orders to change their UI laws, bolster UI trust funds and/or provide relief to their employers. For example, several states have transferred federal stimulus under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to their UI trust fund balances to avoid significant increases in employers’ 2021 SUI tax rates.

California’s Minimum Wage to Increase to $14 per Hour for Large Employers, $13 per Hour for Small Employers. Oakland—California’s minimum wage will increase on January 1, 2021 to $14 per hour for employers with 26 or more employees and $13 for employers with 25 or fewer employees.

The Paycheck Protection Program is reopened with over $284B in funds available for new loans. First-time borrowers must have 500 or fewer employees and meet other eligibility criteria. In addition, second PPP loans are available to businesses that received a PPP loan previously if they have 300 or fewer employees and meet other eligibility criteria.

Year End Checklist 2020…

• Audit, Audit, Audit…. Ask employees to verify name, address and social security number.Ensure recent new hires are correct (2020).  Place address update forms in the lunchroom, on bulletin boards
• Send Self Service flyers to employees who have not registered

The Social Security Administration (SSA) announced on Tuesday, October 13that the 2021 social security wage base will be $142,800, which is an increase of $5,100 from $137,700 in 2020(view the SSA Fact Sheet).

The IRS released a revised 2020 Form 941,Employer’s Quarterly Federal Tax Return, and its instructions. The form will be used to report employment taxes beginning with the third quarter of 2020.

401(k), 403(b), 457(b) Pre-Tax Contribution Limit Remains $19,500 for 2021

The IRS has announced the changes to the dollar limits on benefits and contributions under qualified retirement plans, as well as other items, for tax year 2021 [Notice 2020-79, 10-26-20].

Forbes.com The Internal Revenue Service announced new, higher contribution limits for health savings accounts for 2021 today. You’ll be allowed to contribute $3,600 for individual coverage for 2021, up from $3,550 for 2020, or $7,200 for family coverage, up from $7,100 for 2020.