Update to 2013 Payroll Taxes
Social Security Payroll Taxes Will Increase 2% in 2013
The government reduction in Social Security payroll taxes (tax holiday) ended December 31, 2012. The employee tax rate for Social Security will return to 6.2% from 4.2%, resulting in 2% less in after-tax pay beginning in the first January 2013 paycheck. This tax break was not extended in the Act passed by Congress on January 1, 2013.
Federal Withholding Tax Rates
The Act maintains the current income tax rates for individuals earning up to $400,000 and families earning less than $450,000. Vanderbilt is waiting for tax tables to be released by the IRS to implement withholding changes for those in the higher income brackets. In the meantime, the 2012 federal tax tables still apply.
For information on additional tax changes for 2013, please visit the HR website.
If you have questions, please contact the Employee Service Center at human.resources@vanderbilt.edu or 615.343.7000.