e-mail we sent out to all our employees today...I would have loved to have had our accounting manager end it with: "now whoever voted for Obama and the Democrats aren't ya happy now...your taxes just went up $600 a year to pay for all the lazy ass-holes that refuse to work"
On January 1, 2013, the American Taxpayer Relief Act of 2012, which averts certain aspects of the Fiscal Cliff, was passed by both houses of Congress. Key highlights for all employees include the following:
The Act continues the lower "Bush era" income tax rates for individuals earning up to $400,000 and households earning up to $450,000. The tax rate for earnings in excess of those thresholds will now increase from 35 percent to 39.6 percent.
The Act does not extend the 'payroll tax holiday', so the employee Social Security tax rate will go from 4.2 percent back to 6.2 percent up to the 2013 taxable wage limit of $113,700. As a result, a worker earning $30,000 per year will now see $600 less in their net take-home pay as compared to 2012.
Let me know if you have any questions about your payroll taxes for 2013.
