Polices and Procedures
  Benefits


Printer Friendly Version 
News & Information
Changes in First Paycheck in January
Posted Date:
1/3/2013
Expired Payroll Tax Cut resulting in 2% more in Employee Social Security Tax Withholding

As of December 31, 2012, the Payroll Tax Cut expired. This cut reduced payroll taxes by 2% during the past 2 years. The 2012 FICA tax rate was 4.2% for employees and 6.2% for employers under the Middle Class Tax Relief and Job Creation Act of 2012. However, Congress did not extend the 4.2% rate for employees, therefore the employee rate will now increase to 6.2% with paychecks beginning in January 2013.

The 2013 FICA tax rate, which is the combined Social Security tax rate of 6.2% and the Medicare tax rate of 1.45%, will be 7.65% for 2013 up to the social security wage base. The employer rate remains at 6.2%. The Medicare rate, also matched by the employer, is unchanged at 1.45% and applies to all wages. What this means, is that your paycheck will be taxed an additional 2% for social security, therefore your net pay will now be lower.

United Way Contributions

United Way contributions were changed to reflect the amount you chose on your donation form. If you selected to donate your full donation amount out of one paycheck, then the full amount was taken out of this paycheck. Thank you for your donation to United Way!

 

Town of Aberdeen  -  115 N. Poplar Street, Post Office Box 785  -  Aberdeen, NC 28315  -  Phone: 910-944-1115
Site Map  |  Powered by MunicipalCMS