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| Posted by | Message | pleading the fifth 
Louisville Fan
Member since Feb 2006
979 posts
| Question about payroll taxes... (Posted on 1/2/13 at 12:52 pm)
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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Florida Fan
louisiana
Member since Sep 2005
2069 posts
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That is correct. Once you hit the cap they stop taxing your pay.
| | Back to top | | pleading the fifth
Louisville Fan
Member since Feb 2006
979 posts
| re: Question about payroll taxes... (Posted on 1/2/13 at 1:52 pm to Nawlens Gator)
Thanks
| | Back to top | | VABuckeye 
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
8115 posts
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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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