As announced late last year, employee paychecks for 2013 reflect two recent tax changes. The Social Security, or OASDI, tax “holiday” that was in effect for the prior two calendar years expired, returning the OASDI rate to 6.2 percent from 4.2 percent. Also, the 2010 Affordable Care Act included a provision that effective in January 2013 imposes an additional 0.9 percent medicare tax on individual earnings exceeding $200,000 ($250,000 for married couples filing jointly). These tax increases are unrelated to the fiscal cliff deal recently reached.
Tax Changes Cause Decrease in 2013 Paychecks
January 3, 2013