The two-year decrease in the employee's social security tax rate of 4.2% from 6.2% expired on Jan. 1. Therefore, all employees will see a slight decrease in their net income on their first pay of January 2013 of approximately $23-$80, depending on applicable gross income.
The taxable wage base for Social Security portion of FICA increases to $113,700, a 3.2% hike over the 2012 wage base of $110,100. The maximum social security tax employees will pay in 2013 is $7,049.40.
Contact Cathy Mundy, payroll manager, at email@example.com with any questions regarding changes to social security tax rates.