21-P-006 Change in Social Security Base Rate (October 14, 2020)
Posted on October 21, 2021 at 12:51 PM by Kansas Department of Administration
Informational Circular No.
Supersedes Informational Circular No:
January 1, 2021
(Original Signature on File)
Social Security Wage Base Increase to $142,800 effective January 1, 2021
The Social Security wage base for OASDI will be $142,800 for calendar year 2021. This is a $5,100 increase from the wage base of calendar year 2020 of $137,700. The OASDI tax rate for 2021 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2021 will be $8,853.60. There continues to be no limit on wages subject to the Medicare tax in 2021. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
Printable Version of 21-P-006