MEMORANDUM

     DATE:    December  2020

    FICA Tax Changes for 2021:

     FICA Tax includes both Social Security coverage and Medicare coverage, and are both a deduction

     from employee wages and matched by the employer.

                         Maximum Wages Subject to Social Security Tax          $ 142,800.00

                         Maximum Social Security Tax – Employers                        8,853.60

                         Maximum Social Security Tax – Employees                       8,853.60

                         Maximum Wages Subject to  Medicare Tax                        Unlimited

                         Social Security Tax Rate:

                         Employees                                                                           6.20%

                         Employers                                                                           6.20%

                                      Medicare Tax Rate:

                         Employees                                                                           1.45%}- Employees over $200,000 2.35%

                         Employers                                                                           1.45%

                         As  of  01/01/2021, minimum  wage  is $14.00 / hr. in Nassau, Suffolk & Westchester

                                                                                          $15.00 / hr. in NYC

                         As  of  01/01/2021, minimum  wage  for  NJ  is  -  $11.00 / hr.

                         As  of  01/01/2021, NYS Unemployment Wage Base is  -  $ 11,800.00

There is a rate increase for the New York Family Leave Act from 0.27% to 0.511% of

an employee’s gross wages up to an annual maximum of $196.72 for the 2021 calendar year.

• All Forms W-2 and 1099 are due to Recipient and Authorities by 01/31/21.
• NYS  requirement  for  employee  wage notifications is no longer required, except at new hire.      

     Forms  1099  have  become  an  area  for  target.  All  non-corporate  entities  for  whose  services  you  have  paid  $600.00  or  more  per  year,  must  complete  Form  W-9  for  you  to  have  on  file  so  we  may  prepare and  issue  a  Form  1099.   Businesses  must  issue  Forms  1099  to  all  non-corporate  entities  who  are  paid $600.00  or  more  per  year   for  services  provided.   Businesses  must  also  issue  a  Form  1099  to  their Landlord  (unless  the  Landlord  is  a  Corporation),  for  rent  paid  of  $600.00  or  more  per  year.     

     Additionally,  payments  of   $600.00  or  more  paid  to  Attorneys,  including  Corporations,   are  to  be  issued a  Form  1099.  

For  all  sales  that  are  exempt  from  sales  tax,  you  must  have  a  signed  resale  certificate

or  exemption  certificate  on  file  from  the  customer.    If  you  need  any  forms  or  have  any  questions,  please  do  not  hesitate  to  contact  our  office.

• It  is  a  misdemeanor  offense  to  be  collecting  Sales  Tax without  having  your Certificate  of  Authority  on  display  at  your  place  of business  and,  if  you  have  employees,  you  must  also  have  your  Workers’ Compensation  and  Disability  Insurance  Certificates  displayed.

•   Visit  our  Facebook  page  under  " Michael J. Berger and Co., CPA’s, LLP "

**    Additional  information  will  be  posted  to  our  website:  www.bergercpa.com.

                                Happy,  Healthy  New  Year !

I"m a paragraph. Click here to add your own text and edit me. It's easy. Just click "Edit this text" below and you can start adding your own content and make changes to the font.

NOTE: This sample text won't appear for your users