Myra Posted January 7, 2013 Share Posted January 7, 2013 A note in our paycheck this week stated ..........that we shouldn't be alarmed by the larger financial deductions.....and that it has nothing to do with the fiscal cliff.....but...... :crying: As you may have noticed, your paycheck dated January 2, 2013 reflected a reduction in your take home pay. The temporary reduction in the Social Security payroll tax rate (4.2%) expired on December 31, 2012. Effective January 1, 2013 the tax rate is 6.2%. The Social Security wage base limit increased to $113,700 for 2013. The Medicare tax rate for employees and employers is 1.45%. There is no wage base limit for this tax. Beginning January 2013, employees receiving income in excess of $200,000 will be subject to an additional Medicare Tax. The additional tax rate is 0.9%. The IRS has not published the new Federal income tax withholding rates for 2013. Employers have been instructed to continue to withhold using the 2012 withholding rates until further notice. Quote Link to comment Share on other sites More sharing options...
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