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2013 Payroll Tax Updates |
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January 15, 2013,
Volume 59, No. 17 |
- Federal Tax: Now that the American Taxpayer Relief Act 2012 has been enacted, the IRS released revised Federal withholding tables on January 3, 2013. These tables are based on the tax rates and brackets contained in the new law. The University will use the “Revised” tables to calculate Federal withholding beginning with the weekly payroll dated January 11, 2013. See www.irs.gov/pub/irs-pdf/n1036.pdf
- Social Security Wage Base: The 2013 social security wage base will be $113,700, an increase of $3,600 from the 2012 wage base of $110,100.
- Social Security Tax Rate: The tax rate will increase from 4.2% to 6.2% for 2013 on wages up to the taxable wage limit of $113,700. The maximum Social Security tax that an employee would pay will be $7,049.40.
- Supplemental Pay Withholding: Withholding on payments less than $1 million in a calendar year remains at 25%; withholding on payments in excess of $1 million in a calendar year increases from 35% to 39.6%.
- Medicare Tax Rate: Increases from 1.45% to 2.35% on wages earned over $200,000. The employer is required to withhold an additional Medicare tax at the point in the pay period when an employee’s annual wages exceed $200,000.
- PA State Unemployment Insurance Employee Rate: The 2013 rate will decrease to .07% from .08% in 2012.
- PA State: The tax rate remains at 3.07%.
- Philadelphia City: The tax rates remain at 3.9280% for Residents and 3.4985% for Non-Residents.
If you have questions or require additional information, contact the Payroll Tax Office at (215) 898-7792, (215) 898-6573 or (215) 898-1543.
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Almanac -
January 15, 2013, Volume 59, No. 17
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