Purpose
To inform agencies of the tax related withholding requirements for 2013.
Effective Date(s)
Paychecks dated after January 1, 2013
Social Security Tax
The Social Security wage base limit will increase to $113,700 for 2013.
The temporary reduction in Social Security payroll tax rate (4.2%) for employees expires December 31, 2012. Effective, January 1, 2013 the tax rate for employees is 6.2%. The maximum social security tax employees and employers will each pay in 2013 is $7,049.40.
Medicare Tax
The Medicare tax rate for employees and employers is 1.45%. There is no wage base limit for this tax.
New Additional Medicare Tax
Beginning January 2013, employees receiving income in excess of $200,000 will be subject to an additional Medicare Tax. The additional tax rate is 0.9%.
Federal Withholding Rates
The IRS has not published the new Federal income tax withholding rates for 2013. Employers have been instructed to continue to withhold using the 2012 withholding rates until further notice.
New York State, New York City and Yonkers Withholding Allowance
The value of one New York State, New York City and Yonkers Withholding Allowance remains at $1,000.
New York State and Yonkers Withholding Rates
The New York State and Yonkers withholding tax tables have been revised for 2013.
Please refer to the following publications accessible at the NYS Department of Taxation and Finance website at www.tax.ny.gov for additional information.
| NYS-50-T-NYS | New York State Withholding Tax Tables and Methods |
| NYS-50-T-Y | Yonkers Withholding Tax Tables and Methods |
OSC Actions
OSC will update PayServ with these tax related changes for 2013. OSC will also issue a new bulletin once the IRS publishes the 2013 tax withholding tables.
Agency Actions
Informational only. Please inform your employees.
Questions
Questions regarding this bulletin may be e-mailed to the Tax and Compliance mailbox.