2013 Tax Changes
Social Security Payroll Taxes (2 percent increase)
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% from 4.2%, 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:
| Yearly taxable wages |
Additional taxes you will pay (by month) |
Additional taxes you will pay (by year) |
| $25,000 | $42 | $500 |
| $50,000 | $83 | $1,000 |
| $75,000 | $125 | $1,500 |
| $100,000 | $167 | $2,000 |
Additional Medicare Tax On Wages Over $200,000
The current Medicare tax rate of 1.45% will continue continue for 2013, but an additional Medicare tax of .09% will be withheld on wages paid to an employee in excess of $200,000 during the calendar year.
Federal Withholding Tax Rates
The Act maintains the current income tax rates for individuals earning up to $400,000 and families earning less than $450,000. The maximum marginal rate for employees making more than these amounts will now be 39.6% up from 35%.
Contact
Director
P115 Andy Holt Tower
Knoxville, TN 37996
865-974-5251 Phone
865-974-3530 Fax