Video instructions and help with filling out and completing Who Form 944 Pr Payroll

Instructions and Help about Who Form 944 Pr Payroll

Hi I'm Brian o'laughlin for pennies now good news payroll pros the IRS has released a 2021 version of one of payrolls favorite forms okay well maybe some of you don't have a favorite form but this is what all payroll departments are familiar with in mid-february the IRS released form 941 the employers quarterly federal tax return together with the 2021 instructions for form 941 the form remains relatively unchanged while the instructions have been updated with tips for navigating IRS gov now for a few friendly reminders the Social Security tax rates for the employee and the employer remain unchanged from 2021 those contribution rates stay at 6.2 percent each however the Social Security wage base limit has increased to one hundred and eighteen thousand five hundred dollars for 2021 the Medicare tax rate also remains unchanged from 2021 and stays at 1.45 percent each for the employee and the employer and remember there's no wage base limit for the Medicare tax additionally Social Security and Medicare taxes apply to the wages of household workers who are paid 1,900 dollars or more in 2021 and election workers who are paid 1600 dollars or more in 2021 and those amounts remain unchanged from 2021 employers must also withhold 0.9 percent additional medicare tax from wages paid to an employee in excess of two hundred thousand dollars in a calendar year in 2021 this additional medicare tax is only imposed on the employee remember there is no employer contribution an employer must begin with holding additional medicare tax in the pay period it pays wages in excess of two hundred thousand dollars to that employee and continue to withhold each pay period until the end of the calendar year it's important to remember that all wages that are subject to the Medicare tax are subject to the additional medicare tax withholding for wages paid in excess of the two hundred thousand dollar threshold for more information check out the March payroll currently at American Payroll org in Washington I'm Brian O'Laughlin for pain news now you.