FICA TAX RATES FOR 2013: UPDATE

FICA TAX RATES FOR 2013: UPDATE

The 4.2% employee FICA rate (in efffect for 2012 under the Middle Class Tax Relief and Job Creation Act of 2012) expired at the end of 2012. The FICA tax rate is?_6.2%?_for both employees and employers in 2013.?_Organizations that do an early payroll for 2013 ?_should change the rate in the FICA deductions to 6.2% before computing such payrolls.?_ The 2013 wage base limit is $113,700 for a calendar withholding limit of $7,049.40 (click the news title to read more)
We also encourage use of the FICA Calculations Report for calendar year 2012 before the last payroll for the year is completed. This report is accessed from Payroll Tax Reports. On the range screen, the Calendar Year should be 2012; the Employee FICA Rate should be 4.2; the Employer FICA Rate should be 6.2; and the FICA Gross Threshold should be $110,100.00
This article was originally published on December 13, 2012, and is being republished on January 1, 2013 (to indicate that the 4.2% rate has expired instead of scheduled to expire).

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