Question about payroll taxes... | TigerDroppings.com

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pleading the fifth
Louisville Fan
Member since Feb 2006
1591 posts

Question about payroll taxes...


With the new increase in Social Security tax from 4.2% to 6.2% it made think about this question: if the cap is at $113,700 for 2013 do you pay 6.2% on your monthly/biweekly income (paycheck) until you reach this threshold after which point you no longer are subject to Social Security taxes?

For example, someone who earns $25,000 monthly would reach the cap in 5 months, do they not pay Social Security tax for the 7 months after that?







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Nawlens Gator
Florida Fan
louisiana
Member since Sep 2005
2371 posts

re: Question about payroll taxes...



That is correct. Once you hit the cap they stop taxing your pay.







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pleading the fifth
Louisville Fan
Member since Feb 2006
1591 posts

re: Question about payroll taxes...


Thanks







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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10514 posts

re: Question about payroll taxes...


quote:

With the new increase in Social Security tax


An FYI. There's nothing new about it. It's rolling back to what it had been. The 2% reduction was an Obama stimulus for two years.






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