The IRS has implemented several changes effective Jauary 1, 2013
The standard mileage rate for the use of a personal vehicle for business miles
driven is now 56.5 cents per mile.
The Social Security wage base limit has been raised to $113,700.00. Remember, this is based wages subject to Social Security withholding taxes. If you have certain pretax deductions like Health Insurance,
that reduces the amount subject to Social Security withholding tax.
NEW!
Additional Medicare Tax withholding has been passed into law. The standard Medicare Tax rate of 1.45% is for the
first $200,000.00 of wages subject to Medicare Tax withholding. On wages over $200,000.00, an
additional 0.9% will be withheld on top of the 1.45%. This additional
amount is only imposed on the employee, not the employer.
If you have any further questions concerning this, you may contact me, James Petty, at Total Payroll Solution via our website or by phone (765-288-PAID).
