Taxable Limit Bases & Rates

  • Social Security wage base $137,700; rate 6.2%
  • Medicare wage base unlimited; rate 1.45%
    • Additional Medicare tax 0.9% on wages in excess of $200,000
  • Federal Unemployment Tax (FUTA) wage base $7,000; rate 0.6%
  • Iowa unemployment tax wage base $31,600
    • You should have received a notice of your 2020 rate in early December.  If we prepare your payroll taxes, please bring this notice to us.

 

New Employee Information

Click HERE to download our “New Employee Packet” including W-4 and many forms necessary for employees.

If you only need a federal or Iowa W-4 form, here are the direct links to the most current forms: Federal;  Iowa

The 2020 Form W-4, Employee’s Withholding Certificate, is very different from previous versions. This is due to the federal tax law changes that took place in 2018. The Internal Revenue Service (IRS) is not requiring all employees to complete the revised form and has designed the withholding tables so that they will work with both the new and prior year forms. However, certain employees will be required to use the new form: those hired in 2020 and anyone who makes withholding changes during 2020.