2013 Social Security Taxes Are Going UP!
I received this awesome email from the HR department at my job. I've always considered "social security" to be a "wise tale" for me. I still strongly believe by the time I am old enough to qualify to use it, there won't be a Social Security fund anymore! Either way, here's to paying MORE taxes out of my hard earned paychecks… FML 🙁
The Middle Class Tax Relief and Job Creations Act of 2012 which reduced the employee’s portion of the Social Security payroll tax from 6.2% to 4.2% expired on Monday, December 31, 2012.
Because the restoration of the 6.2% Social Security payroll tax is effective on the first wages paid in 2013, the 6.2% rate will be reflected on your January 11, 2013 pay check.
Financial experts have been crunching numbers to figure out the real deduction that will be seen as a result of the fiscal cliff decision. So as an example, if an individual earned $30,000 in one year, that extra 2 percent for social security would equal about $600 deducted each year. For that individual, they would receive $50 less from their paycheck each month.
Also as a reminder and consistent with prior years any gifts or rewards, given or won by employees will be taxed so as to be in line with the Federal and Local Laws and Regulations.