N    J A P A                                                                                                                                                                          

2021 Limits:                                                                                 



Pension Plans:

Compensation limits for 401(a)(17) pertaining to 401(k) plans: $290,000

Limitation under Section 402(g)(1)on exclusion for elective deferrals in Section 402(g)(3) which applies to 401(k) and 403(b)plans is $19,500

Limitation on deferrals under Section 457(e)(15) remains $19,500

Limitation under Section 408(p)(2)(E), SIMPLE plans, remains $13,500

Limitation on annual benefit under a defined benefit plan Section 415(b)(1)(A) is $230,000

Limitation for defined contribution plans under Section 415(c)(1)(A) is $58,000

Dollar limitation under Section 416(i)(1)(A)(i) for key employees in a top heavy plan is $185,000

Catch-Up deferral limit, SIMPLE plans, for age 50 and older, is $13,500

Catch-Up deferral limit to other plans, for age 50 and older, including 401(k),403(b),457 plans is $6,500

Limitation used for HCEs under Section 414(q)(1)(B) remains $130,000


Qualified Transportation Plans: 

Monthly limit on value of qualified parking is $270

Monthly limit on value of transportation in a commuter highway vehicle and transit pass is $270

Standard Mileage Rate is .56 per mile for business use



Annual Inflation Adjustments:

Limit on contributions to Flexible Spending Accounts is $2,750

Foreign earned income exclusion is $107,600

Adoption Assistance Programs exclusion for special needs child adoption is $14,300

Federal Limits:

Social Security Wage Base: $142,800

Social Security Tax Limit is $8,853.60

Social Security Tax Rate (ER) max is $142,800

Social Security Tax Rate (EE) max is $142,800

Medicare Wage Limit/Rate is unlimited/ (1.45%)

Supplemental Medicare Tax Rate is .9 % for wages over $200,000 unchanged

FUTA Wage Base is $7,000; ER rate is 6%; max credit for state is 5.4%; Net FUTA rate is .60% unchanged

Annual deduction allowed $18,800

HSA Employee only $3600; Family $7200; age 55 or older $1000

NJ Limits:

Base Week $220

Taxable Wage Base for (UI)(DI)(FLI) Wages is $36,200

Max SDI tax $359.32

Disability (DI) Employee Tax rate is .47 percent

Maximum (UI) Employee Tax rate is .003825

Family Leave Insurance Rate (FLI) is .28 percent up to wage base 138,200

Workforce Development Rate (WF) is .000425 percent


Maximum NJ Benefits: 

Worker's Comp Weekly Rate $1130

Unemployment Insurance Weekly Rate $731

Temporary Disability Insurance Weekly rate $903

 APA Compliance Update Read More

 Social Security online account - create and follow your earnings to retirement ! 


 Social Security has released FREE software to check W2 and W2c reports for accuracy by sending forms to the agency prior to filing to reduce errors.




  IRS Pin Numbers

 Department of Labor
 National Payrolll Week
 Paycheck Calculators
 Internal Revenue Service
 American Payroll Association
 Social Security Administration
 IRS Electronic Federal Tax Payment System
 NJ Division of Taxation

 Guide to Electronic Payments



  IRS New Release: taxpayers receiving identity verification letters 

  IRS scam letters hitting the mail once again


© North Jersey APA
Powered by Wild Apricot Membership Software