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new payroll taxes

Discussion in 'Members' Lounge' started by Briansol, Jan 3, 2013.

  1. Briansol

    Briansol Admins Admin VIP

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    my hr dept just sent this out... figured i'd share.


    Tax Changes Affecting 2013 Paychecks -What You Need to Know

    The House and Senate have passed H.R. 8, theAmerican Taxpayer Relief Act of 2012 (ATRA), which includes several changes totax laws affecting payroll and employment tax administration in 2013.PresidentObama is expected to sign the bill into law within 24 hours.




    Will the employee Social Security rate be changed?
    Yes, the employee Social Security rate has increased to 6.2% with a taxable wage limit of $113,700.00. In 2011 and 2012, this rate was temporarily dropped to 4.2%

    Will the employee Medicare rate be affected?
    Yes, Medicare Tax will increase by 0.9% for all employees earning over $200,000.



    Please seebelow for changes included in the 2013 legislation.

    Income Tax Withholding Rates: The American TaxpayerRelief Act effectively maintains the reduced income tax rates adopted in 2001and 2003 for individuals earning up to $400,000 and families earning less than$450,000. Income above those levels will be taxed at 39.6%, up from 35%. The expanded 15% bracket for joint filers, commonly referred to as the marriagepenalty relief, has also been extended.

    These taxrates have been extended permanently for wages paid after December 31,2012.

    Wage Withholding Rate: Because thewithholding rate for “supplemental wages,” such as bonuses andcommission under $1 million, was not dependent on issuance of IRSwithholding tables, The IRS implemented the withholding rate of 28% that wasstatutorily in effect for supplemental wages paid in 2013. For supplementalwage payments over $1 million in a year after 12/31/2012, the withholding ratewas increased from 35% to 39.6%.
     
  2. Briansol

    Briansol Admins Admin VIP

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    so, expect to see 3% LOSS in money this year. And since you probably aren't going to get the standard cost of living wage raise either at 3% this year, your money is now effectively worth 6% less than it was last year.
     
  3. B16

    B16 Super Moderator VIP

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    It is 2% if you make under 200k right?
     
  4. Briansol

    Briansol Admins Admin VIP

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    What, you don't make 200k ?




    (but yeah, you're right)

    Still a 5% loss of dollar value
     
  5. jamesA

    jamesA Well known pissed off telephone guy VIP

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    Sweet. Cause I wasn't having a hard enough time paying everything on time every month anyway!
     
  6. jamesA

    jamesA Well known pissed off telephone guy VIP

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    Wow. First check of 2013 and SS already ripped another $13.60 out of my check. Really can't afford this shit.
     
  7. BigJ

    BigJ I'm just about that action Boss. VIP

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    This was a temporary 2% reduction. This shouldn't be news to most people but then again most people don't pay attention at all. They just go oh I made more money this year! I'll spend more! In reality, no we underfunded SSN Even more to "boost" the economy! Yay!








    We got a thing about it about a month ago. And on a side note my 401k has been killing it the last 2 years.
     
  8. Briansol

    Briansol Admins Admin VIP

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    Who still holds a job they had 2 years ago these days? everyone moves around, makes different money, etc etc... it's hard to compare to something when it wasn't there before.
     
  9. jamesA

    jamesA Well known pissed off telephone guy VIP

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    I've had the same job since 2005, but I got a lot of OT, got pay raises, had other issues, etc. My paychecks are usually steady for 6 months and then something changes. I can't recall but FICA just went up a bit a while back.

    Edit: I guess what really upset me when I just saw this is that the Congr-ASSholes just helped themselves to a nice little payraise since the 113th was sworn in.

    I guess I should go and get elected so I can vote myself into more money while not doing much of anything to help anyone else.
     
    Last edited: Jan 3, 2013
  10. BigJ

    BigJ I'm just about that action Boss. VIP

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    What I'm saying is no matter what job you hold, OASDI (SSN portion of FICA) was temporarily reduced for all employees for 2011 and 2012 to 4.2% of gross income. Since 1990 its been 6.2%.
     
  11. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    Frankly, I wish I could opt out of SS. The till will be empty by the time I get there. I'd rather knowingly put my money into an IRA or something.
     
  12. BigJ

    BigJ I'm just about that action Boss. VIP

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    While I agree with you, its underfunded like whoa now and you have an entire generations of people lining up for their share they paid.

    I think our generation is now understanding that with IRA's and 401k's. I know I have a roth and a 401k. Not much money yet.....


    Edit: I think this is the general consensus that people would like to start reserving their funds for their own use and we'll see a progressive movement in the next 20-30 years to phase it out. Or at least I hope.
     
    Last edited: Jan 3, 2013
  13. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    I'm just saying, it's underfunded because it is not managed well. If my money was in a mutual fund managed that way, it would be moved.
     
  14. B16

    B16 Super Moderator VIP

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    I don't think most of the people who frequent this forum make over 200k. :)
     
  15. chestercheeto48

    chestercheeto48 Senior Member VIP

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    Same job now for 12 years making less than 200k. I do however get a "raise" this year as the wife is back to work full time. She was a full time grad student for the last two years.
     
  16. Briansol

    Briansol Admins Admin VIP

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    [​IMG]


    Only the top 5% will get taxed, Obama said.....
     
  17. jeffie7

    jeffie7 Wrong Whole! VIP

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    I've been at the same job for 14 years now, we're going to pay out another 3-4K or so a year. maybe more =( ohwell, 2 things are true in life, you will always pay taxes and you will always die at some point.
     
  18. jeffie7

    jeffie7 Wrong Whole! VIP

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    I really hope you're kidding.
     
  19. |Chaz|

    |Chaz| Well-Known Member VIP

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    But... but, that's like one meal at Wendy's per pay period... :p
     
  20. Jeef

    Jeef NO MA'AM Moderator VIP

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    So the self employed should put a little extra away.
     
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