Payroll withholdings

[bettingpython]

IRS has not received guidance yet on new withholding table information to provide to employers but with several tax cuts expiring your tax rate is going to increase, It might be a good idea to add some additional withholding now in case they don't publish new withholding tables.

You will definitely see at least a 2% decrease in your check though since the social security tax is increasing from 4.2% to 6.2%

During the making work pay year they decreased the the withholding tables by more than they decreased the tax break to make people think they were getting more than they were because their take home increased due to the lower withholding rates. BOHICA they are going to raise taxes without proportionally increasing the withholding amount and we are going to be screwed.

· Federal Withholding. “When asked by callers during the monthly conference call between IRS personnel and payroll stakeholders on December 6 how employers should determine 2013 withholding from their employees' wages, John Tuzynski, Chief of Employment Tax Policy at IRS, said "it would be consistent with the past for employers and payroll providers to continue using the 2012 withholding tax tables in 2013 if no new tables are issued by the time they begin processing 2013 payroll." Tuzynski and other IRS personnel also stated that they hoped to receive guidance from Treasury soon on how to calculate 2013 withholding.” · Employee social security tax rate increases. The payroll tax cut that reduced the employee share of social security tax from 6.2% to 4.2% in 2011 and 2012 expires on December 31, 2012. Therefore, social security tax must be withheld at the rate of 6.2% from employees' wages paid on or after January 1, 2013.

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[Coded-Dude]

I was wondering why SS witholdings went up.....figures.

 

[Fatboy Joe]

They shouldn't have went up yet, don't go into effect until 01/01/13.

 

[Coded-Dude]

My next paycheck is 1/1/13. Timesheets get filled out and filed on Thursday. Direct deposit is Monday or Tuesday depending on the bank(Mon for me). I can view my checks online after they are filed. Looked at it today and noticed it was less, and it was because SS is taking more out.