Important 2013 Social Security, Medicare tax data
The University of Wisconsin-Parkside Human Resources Department wants you to be aware of how Social Security will be changing:
- Higher Social Security tax cap
The Social Security wage base (the amount of an employee's taxable earnings that can be taxed for Social Security purposes) rises from $110,100 in 2012 to $113,700 in 2013. This means the first $113,700 of an employee's taxable earnings is taxable for Social Security purposes.
- Medicare tax rate increase
The employee Medicare tax rate employers are required to withhold for 2013 is 1.45 percent of an employee's earnings up to $200,000 and 2.35 percent (a .9 percent increase from 2012's 1.45 percent tax rate) on earnings in excess of $200,000. The employer will continue to contribute 1.45 percent of total covered earnings to Medicare. Employees whose combined household earnings for tax reporting purposes is between $200,000 and $250,000 may receive a credit of the .9 percent increase upon filing their 2013 tax return.
The 4.2 percent Employee Social Security contribution is set to expire Dec. 31, 2012. If a new tax bill is not approved, employee Social Security contribution will increase to 6.2 percent.
- Payroll tax cut scheduled to expire