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Posted on Thursday, Jan. 3, 2013 — 8:35 AM
Even with the American Taxpayer Relief Act, you will see more taxes deducted from your paycheck starting in January 2013.
The government reduction in Social Security payroll taxes (“tax holiday”) ended Dec. 31, 2012. The employee tax rate for Social Security will return to 6.2 percent from 4.2 percent, resulting in 2 percent less in after-tax pay beginning in the first January 2013 paycheck. This tax break was not extended in the Act passed by Congress on Jan. 1, 2013.
Estimated 2 percent increase for Social Security Payroll Taxes:
you will pay (by month)
you will pay (by year)
On Jan. 2, the IRS released the 2013 federal withholding tables. Income tax rates will remain at 2012 levels for individuals earning up to $400,000 and families earning less than $450,000. Tax rates will increase from 35 percent to 39.6 percent for employees with incomes greater than $400,000 and married couples with incomes greater then $450,000. Paychecks that were processed Jan. 1-3 (including paychecks already issued for Jan. 4) will reflect federal withholding based on the 2012 tax rates. Paychecks processed beginning Jan. 4 will reflect the new 2013 tax withholding rates, which have only increased for the income bracket mentioned above.
For information on additional tax changes for 2013, please visit the HR website.
Walk-in: HR Express (3 locations):
Call: (615) 343-7000, Mon.-Fri., 8 a.m.-5 p.m.
Live Chat: Mon.-Fri., 8 a.m.-5 p.m.
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