Social Security Tax Increase

[Hortical]

The Social Security tax for 2013 reverts back to its normal rates. The tax rate for 2013 is 6.2% (up to a maximum wage base of $113,700). The Social Security tax rate had been temporarily reduced for the years 2011 and 2012, in what was referred to as a “payroll tax holiday”. For these two years, the employee-portion of the Social Security tax was reduced from 6.2% to 4.2%.

The temporary rate reduction for Social Security taxes was not extended as part of the American Taxpayer Relief Act. The reduced Social Security tax thus expired at the end of 2012, as it was scheduled to do.
What does this mean for you? That means the next paycheck that you receive may be less than normal due to the fact the OASDI deduction has changed from 4.2% back to 6.2%.

[Assasin]

yeah. My co-worker just told he his check look a little smaller. I have to go and check mines because my accountant friend had told me about this. Also more money may have come out of your check for this week because the fiscal cliff didn't pass until a day or two ago so anybody who get pay this week might be short until it is adjusted.