Resources: Key Facts

 

Axelia Partners' key facts
 

Holidays

There are ten annual U.S. federal holidays designated by the United States Congress:

  • New Year’s day: January 1st
  • Martin Luther King Jr. Day: Third Monday in January
  • President’s Day (also called George Washington’s Birthday): Third Monday in February
  • Memorial Day: Last Monday of May
  • Juneteenth: June 19th
  • Independence Day: July 4th
  • Labor Day: First Monday in September
  • Columbus Day (renamed Indigenous Peoples’ Day in some jurisdictions): Second Monday in October
  • Veterans Day: November 11th
  • Thanksgiving Day: Fourth Thursday in November (Friday after Thanksgiving is often a day off.)
  • Christmas Day: December 25th

Note:

  • When a federal holiday falls on a Saturday, it is usually observed on the preceding Friday. When the holiday falls on a Sunday, it is usually observed on the following Monday.
  • Most of the ten U.S. federal holidays are also state holidays, except for Martin Luther King Jr. Day, President’s Day and Columbus Day.

 


 

Federal Tax Rates For Corporations

Corporations in the United States pay federal corporate income taxes levied at a 21% rate. Many states also levy taxes on corporate income. Forty-four states and D.C. have corporate income taxes on the books, with top rates ranging from North Carolina’s single rate of 2.5 percent to a top marginal rate of 11.5 percent in New Jersey. Fourteen states levy graduated corporate income tax rates, while the remaining 30 states levy a flat rate on corporate income.

Corporate federal tax rate in the United States is expected to reach 28.00 percent by the end of 2021, according to Trading Economics global macro models and analysts’ expectations.

Corporate Income Tax Rates Per State (1/1/2021):
US map showing corporate income tax rates per state

Source: https://taxfoundation.org/state-corporate-tax-rates-2021/


 


 

Main payroll taxes and rates
FICA (Medicare)
Maximum Taxable Earnings  No Limit
Employee / Employer Tax Rate (Unchanged from 2020)  1.45%
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match) 0.90%
FICA (Social Security)
Maximum Taxable Earnings (Increased from $137,700 in 2020)  $142,800
Employee / Employer Tax Rate (Unchanged from 2020)  6.20%
FUTA (Employer-Paid)
Maximum Taxable Earnings  $7,000
Percent of Taxable Wages  6.00%
Maximum Credit  5.40%
Normal Net Tax  0.60%
Supplemental Wage / Bonus Rates
Flat Rate Withholding Method (Unchanged from 2020)  22%
Pay over $1 Million (Unchanged from 2020)  37%
Health Savings Accounts
Self-Only Contribution Limit (Employee / Employer) (Increased from $3,550 in 2020)  $3,600
Family Contribution Limit (Employee / Employer) (Increased from $7,100 in 2020)  $7,200
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2020) $1,000
Pension Plans
Contribution Limit – 401(k) & 403(b) plans (Unchanged from 2020)  $19,500
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Unchanged from 2020)  $6,500

 
 

EXAMPLE OF SALARY TAXATION AND EMPLOYER COST
Employee Gross to Net Calculation Calendar Year Tax rate
Annual Gross Pay  $100,000.00
Federal Income Tax (15,009.00) 15.01%
Social Security ($6,200.00) 6.20%
Medicare ($1,450.00) 1.45%
State Income Tax (New York State) ($5,209.06) 5.21%
Local Income tax (New York City) ($3,638.35) 3.64%
Employee Take-home Pay $68,493.59 31.51%
Employer Cost Calendar Year Tax rate
Federal Unemployment $42.00 0.04%
Social Security $6,200.00 6.20%
Medicare $1,450.00 1.45%
State Unemployment $446.90 0.45%
Employer Taxes $8,138.90 8.14%
TOTAL EMPLOYER RESPONSIBILITY $108,138.90  

 


 

Tax deadlines – companies and individuals (2021)

Corporate tax/legal deadlines

Type of Tax Comments Due date
Income Tax for 12/31 fiscal year    
US Federal return and payment Tax rate between 21% of taxable income 4/15
US Federal return if extension filed 10/15
Federal and State Q2, Q3 and Q4 estimates 6/15, 9/15, 12/15
Information return (Form 5472) – Included with tax return package Report of intercompany transactions with foreign group entities 4/15, 10/15
Payroll  
Payroll quarterly Returns (941/940 forms) Employee/Employer withholding tax reports 1/31, 4/30, 7/31, 10/31
Payroll certificates – W2 form 1/31
Independent Contractors  
1099 forms reporting fees paid to non-employee third parties Information reports only to be sent to vendors 1/31
1096 forms due to the IRS and the state + 1099 forms Information reports only to be sent to IRS and states 1/31
Annual Report    
Annual report Delaware Legal information report to send yearly along with franchise tax 3/1

 

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