The Social Security Administration (SSA) announced on Tuesday, October 16, 2012 that the 2013 social security wage base will be $113,700, an increase of $3,600 from the 2012 wage base of $110,100. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore all covered wages are still subject to the 1.45% tax. Wages paid in excess of $200,000 in 2013 will be subject to an extra 0.9% Medicare tax that will only be withheld from the employees’ wages. Employers will not pay the extra tax.
Note that the 2012 Social Security Withholding rate of 4.2% for employees under the Middle Class Tax Relief and Job Creation Act of 2012, is scheduled to be 6.2% for both employees and employers in 2013. However, bills currently being consider in Congress may change this.
Prior to processing your first payroll for 2013 please verify that the amounts are correct in your payroll system. If you need assistance please contact support @ 502-429-6902 ext. 134.
Connect with Christine Ashley, Oasis Solutions Group Senior Analyst & HR Software Specialist