What Is New for 2013 Payroll Tax Rate

by admin 1. January 2013 08:33

After President Barack Obama signed the tax rate changes into law, IRS released the new updated income-tax withholding tables for 2013 on Jan 3. The revised withholding tables show the new rates in effect for 2013 and supersede the tables published on Dec 31, 2012.

Click here to see 2013 Percentage Method Tables for Income Tax Withholding. We have released the new 2013 ezPaycheck Payroll Software for the tax changes.

What's New

2013 withholding tables.  This notice includes the 2013 Percentage Method Tables for Income Tax Withholding. Employers should implement the 2013 withholding tables as soon as possible, but not later than February 15, 2013. Use the 2012 withholding tables until you implement the 2013 withholding tables.

Social security tax
For 2013, the employee tax rate for social security increases to
6.2%. The social security wage base limit increases to $113,700.

Employers should implement the 6.2% employee social security tax rate as soon as possible, but not later than February 15, 2013. After implementing the new 6.2% rate, employers should make an adjustment in a subsequent pay period to correct any underwithholding of social security tax as soon as possible, but not later than March 31, 2013.

Medicare Tax
The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2012. There is no wage base limit for Medicare tax.

Additional Medicare Tax Withholding
In addition to withholding Medicare tax at 1.45%, you must withhold a
0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.

Percentage Method Tables for Income Tax Withholding
You can view 2013 Federal Tax Table here

http://www.halfpricesoft.com/federal_income_tax_2013.asp

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Relateted Link

FAQs about 2013 ezPaycheck Software Updates

http://www.halfpricesoft.com/business-blog/post/2013/01/04/FAQs-about-Year-2013-Payroll-Software-Updates.aspx

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