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Tax Mid-Year Review

June 15, 2021 Alert

We've outlined the numerous areas of tax law legislation that may have an impact on your business. Below are summaries of what to expect and prepare for beginning July 1, 2021, through December 31, 2021

Generic compliance alert image

The past six months have brought many legislative changes ranging from Coronavirus legislation to employment and withholding tax filing. In addition, there has been movement in other areas of tax law legislation that may have an impact on your business.  Below are summaries of what to expect and prepare for beginning July 1, 2021, through December 31, 2021.

Federal Updates

  • American Rescue Plan Act of 2021 was passed on March 11, 2021 – See PEAK Article 97899 for more information.
    • Extension of Leave Benefits and Tax Credits from Families First Coronavirus Response Act (FFCRA).
    • Earned Income and Child Tax Credit Improvements for 2021.
    • Expanded Unemployment Insurance Benefits.
    • Direct Stimulus Payments.
    • Worker Safety.
    • Grants to impacted industries.
    • Modifications to Paycheck Protection Program.
    • Extension of Employee Retention Credit.
    • Cobra Subsidy Credits.
  • IRS has produced a new version in May 2021 of Form 7200 for requesting advance of credits eligible for advancement under ARPA. See PEAK Article 100330 for more information.
  • IRS is Issuing Notice LTR 3064C as a reminder to taxpayers who reported deferred amounts of Social Security Taxes in 2020 about their amounts due. See PEAK Article 100880 for more information.

State Unemployment Insurance Tax Changes

  • Alaska issued an Emergency Option Form for employers to reduce the unemployment tax rate.
    • Click here to view the Emergency Option Form.
  • Delaware freezes the unemployment insurance tax rates for 2021.
    • Click here for more agency information.
  • Florida reissued the reemployment tax rates for tax year 2021.
    • Click here for more agency information.
  • Massachusetts passed legislation to change the unemployment insurance rate schedule to freeze schedule E instead of schedule G for 2021 tax year.
    • Click here for more agency information.
  • New Mexico readjusted employer unemployment insurance tax rates for 2021.
    • Click here for more agency information.
  • North Carolina reduced employer base contribution rates for tax year 2021.
    • Click here for more information.

 

State Unemployment Insurance Tax Updates

Following below is a list of state jurisdictions that either changed or released new unemployment insurance tax information.

State

New Employer Rate

Experienced Employer Rates

SUI Wage Base Limit

Delaware

1.8% or 2.3%

0.3% to 8.2%.

$16,500

Florida

 2.7%

0.1% to 5.4%

$7,000

Kentucky

2.70%

 0.3% to 2.4% or   6.5% to 9.0%

$10,800

Massachusetts

2.42%

 0.94% to 5.24% or 7.03% to 14.37%,Surcharge 0.1% to 0.565% or 0.58% to 0.76%

$15,000

North Carolina

1%

2.4% to 1.9%.

 $26,000

Tennessee

2.7% 

 0.01%-10.0%

$7,000 

 

State Minimum Wage Updates

Following below is a list of state jurisdictions changing their state minimum wages rates effective July 1, 2021.

State

Effective Date

Minimum Wage

Minimum Cash Wage

Minimum Credit

Connecticut

8/1/2021

$13.00

$8.23 (bartenders), $6.38 (others)

$4.77 (bartenders), $6.62 (others)

Chicago (21 or less employees)

7/1/2021

$14.00 

$8.40

$5.60

Chicago (21 or more employees)

7/1/2021

$15.00

$9.00

$6.00

Chicago (youth employees)

7/1/2021

$11.00

$6.60

$4.40

District of Columbia

7/1/2021

$15.20

$5.05

$10.15

Florida

9/30/2021

$10.00

$6.98

$3.02

Nevada

7/1/2021

$9.75 & $8.75 (with health benefits)

N/A

N/A

Oregon

7/1/2021

$12.75

N/A

N/A

Virginia

5/1/2021

$9.50

$2.13

$7.37

 

Local Minimum Wage Updates.

Following below is a list of local jurisdictions changing their state minimum wages rates effective July 1, 2021.

State

Local

Effective Date

Minimum Wage

Minimum Tipped Wage

Tipped Credit

California

Berkeley

7/1/2021

$16.32

N/A

N/A

 

Emeryville

7/1/2021

$17.13

N/A

N/A

 

Fremont (Small employers 25 or less employees)

7/1/2021

$15.00

N/A

N/A

 

Fremont (Large employers 26 or more)

7/1/2021

$15.25

N/A

N/A

 

Long Beach (Hotel)

7/1/2021

$15.69

N/A

N/A

 

Los Angeles City (Small employers 25 or less employees)

7/1/2021

$15.00

N/A

N/A

 

Los Angeles County (Small employers 25 or less employees)

7/1/2021

$15.00

N/A

N/A

 

Los Angeles (Hotel)

7/1/2021

$17.64

N/A

N/A

 

Malibu (Small employers 25 or less employees)

7/1/2021

$15.00

N/A

N/A

 

Milpitas

7/1/2021

$15.65

N/A

N/A

 

Pasadena (Small employers 25 or less employees)

7/1/2021

$15.00

N/A

N/A

 

Santa Monica (Small employers 25 or less employees)

7/1/2021

$15.00

N/A

N/A

Illinois

Cook County

7/1/2021

$13.00

$6.60

$6.40

Maryland

Montgomery County (Employers with 10 or less employees)

7/1/2021

$13.50

$4.00

$9.50

 

Montgomery County (employers with 11 or more employees and:
• are general industry employers with 50 or fewer employees;
• have tax-exempt status under federal law; or
• provide certain community or home health services

7/1/2021

$14.50

$4.00

$10.50

 

Montgomery County (General industry employers with 51 or more employees)

7/1/2021

$15.00

$4.00

$11.00

Minnesota

Minneapolis (Employers with 100 or less employees)

7/1/2021

$12.50

N/A

N/A

 

Minneapolis (Employers with 101 or more employees)

7/1/2021

$14.25

N/A

N/A

 

St. Paul (Employers with 5 or fewer employees)

7/1/2021

$10.00

N/A

N/A

 

St. Paul (Employers with 6 - 101 employees)

7/1/2021

$11.00

N/A

N/A

 

St. Paul (Employers with 102 - 10,001 employees)

7/1/2021

$12.50

N/A

N/A

Oregon

Portland Metro

7/1/2021

$14

N/A

N/A

 

Nonurban counties

7/1/2021

$12

N/A

N/A

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