New Social Security Tax Withholding Rules for 2013

Under federal regulations effective January 1, 2013, the amount of Social Security (OASDI) tax that will be deducted from your paycheck will be increased to 6.2% of gross earnings, rather than the 4.2% that was deducted in 2011-2012. The “payroll tax holiday” – a 2% reduction -- was originally implemented by the federal government for 2011, and was extended into 2012.  The reduction expired on January 1, 2013.

As a result, all Emory faculty and staff will see a larger Social Security (OASDI) deduction taken out of paychecks beginning in January (Jan. 11 paycheck for bi-weekly paid employees and Jan. 31 paycheck for monthly paid employees).

Other changes to Social Security tax withholding for 2013 include:

• The Social Security (OASDI) wage base increased to $113,700.
• The Patient Protection and Affordable Care Act of 2010 increased the Medicare part A payroll tax by 0.9% (from 1.45% to 2.35%) for all income above $200,000.