The Internal Revenue Service (IRS) released updated income-tax withholding tables for 2013 reflecting recent changes by Congress to address the “fiscal cliff.”
The updated income tax withholding tables show the new rates in effect for 2013 and supersede the tables issued on December 31, 2012. The updated tables contain the percentage method income-tax withholding tables and related information that employers need to implement these changes.
According to the IRS:
- Employers should begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by the “fiscal cliff” legislation.
- Employers should start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible, but no later than Feb. 15, 2013.
- For any Social Security tax under-withheld before Feb. 15, 2013, employers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2013.
We are still waiting for the 2013 Form W-4 to be published by the IRS.
Author: Gail Cecchettini Whaley
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