Important tax information for 2013 from the UW Payroll Office.
Please forward this information to your employees.
The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013. The Payroll system has been updated with the information and the changes will be reflected on the January 10, 2013 paycheck. Below are some of the highlights that may impact your paycheck. Please keep in mind that the University of Washington cannot give tax advice and will not answer questions about an individual?s personal tax situation.
Reminder – Employee Social Security Tax Rate Goes Back to 6.2% The American Taxpayer Relief Act of 2012 does not extend the reduced 4.2% employee social security tax rate. The employee tax rate for all social security wages paid in 2013 up to the wage base of $113,700 is 6.2%, the same as the employer tax rate.
2013 Withholding Tables Issued
On January 3, the IRS issued Notice 1036, Early Release Copies of the 2013 Percentage Method Tables for Income Tax Withholding. The 2013 Payroll Tax Deductions Table will be posted on the Payroll Office website later today
at: http://f2.washington.edu/fm/payroll/employees/taxes. Please note that all table updates are based on the Notice 1036 and may be subject to change when IRS Publication 15 is issued later this month.
2013 W-4, Employee?s Withholding Allowance Certificate As of Friday afternoon, the 2013 W-4 has not been published by the IRS. However, changes to your W-4 can be made in Employee Self Service. The Payroll Office tax website has links to both the IRS Withholding Calculator and Employee Self Service at: http://f2.washington.edu/fm/payroll/employees/taxes. Please note that changes made in Employee Self Service by 5:00 on Friday, January 04, 2013 will take effect on the January 10, 2013 paycheck. Changes made after will take effect on the January 25, 2013 paycheck.
Additional Medicare Tax on wages paid over $200,000 One change that was already scheduled to take effect for tax year 2013 is the Additional Medicare Tax. The first $200,000 of Medicare subject wages will have Medicare tax withheld at the rate of 1.45%. All Medicare subject wages paid in excess of $200,000 will have an additional Medicare rate of 0.9% for a total Medicare withholding rate of 2.35%. Please refer to the
2013 Payroll Tax Deductions Table available at: http://f2.washington.edu/fm/payroll/employees/taxes for information on how to calculate Medicare subject wages.