Tax Rate Changes

Social Security Tax Rate Increase

The two percent employee FICA Social Security tax cut provided in the Tax Relief Act of 2010 expired December 31, 2012. As a result the employee FICA Social Security tax rate will be restored to 6.2%, effective January 1, 2013. This increase will be reflected on the January 7, 2013 paycheck.

Federal Income Tax Withholding Rate Table

Due to uncertainty at the federal level, at this time no changes have been made to the federal income tax withholding tables for 2013 based on changing income tax rates. The tables may change at a later date. The University is required to implement changed tax tables by the timeframe outlined in regulations and therefore, employees may see a difference in the amount of federal income tax withheld from 2013 paychecks at a later date.

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2 Responses to Tax Rate Changes

  1. Jerry Holland says:

    I’m confuse as to why this is going to affect the Jan 7 pay check. The hours that are reflected on this paycheck are before 31 Dec 2012.

    • Jerry Holland says:

      I found the answer. We are what is referred to as a cash based tax payer. Meaning we recieved the money in 2013 so we pay the taxes for 2013.

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