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PayCheck - don't be alarmed but....


Myra
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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.

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