Meet your new IRS withholding tables

posted at 1:01 pm on January 3, 2013 by Erika Johnsen

With a new tax scheme comes new tax withholding patterns, and since the fiscal cliff deal is finally officially official, employers will now have to implement the changes in withholding in time for the first few paychecks of the new year. Our dear Internal Revenue Service (which has its hands full with all of the extra resources and manpower they’ll need over the next couple years just to deal with the ObamaCare tax hikes alone, by the way) released the new guidelines today:

WASHINGTON — The Internal Revenue Service today released updated income-tax withholding tables for 2013 reflecting this week’s changes by Congress.

The updated tables, issued today after President Obama signed the changes into law, show the new rates in effect for 2013 and supersede the tables issued on December 31, 2012. The newly revised version of Notice 1036 contains the percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by this week’s legislation.

Employers should start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2013, but not later than Feb. 15, 2013. For any Social Security tax under-withheld before that date, employers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2013.

Ah, yes — let us not forget the ‘expiration of the payroll tax cut.’ Just in case you thought you would be shielded from the consequences of our spectacularly terrible federal spending habits because your income does not qualify among the higher brackets… don’t.

That’s because payroll taxes will increase on most workers after Congress decided not to reverse an expiration of a payroll tax cut – a development that was largely expected. Payroll taxes rose to 6.2% under the deal, from 4.2% last year.

The nonpartisan Tax Policy Center estimates that 77% of Americans will see higher taxes because of the elimination of the payroll tax cut, meaning $115 billion less in disposable income. …

A household making $50,000 to 75,000 a year will make $822 less this year than last year, according to Rosenberg’s calculations. Those making $75,000 to $100,000 will see $1,206 less in their paychecks, while those making $200,000 to $500,000 will see a drop of $2,711 in their paychecks.

If the payroll tax cut was only ever meant as a temporary holiday to stimulate a weak economy, then I can’t even imagine what business we think we have raising taxes now


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Erika, I’m glad the raising/expiration of this tax is on Obama’s watch. The GOP knew it was unsustainable if we were going to continue any sort of SS even at reduced levels, why not let it be “Obama’s fault”.

Tater Salad on January 3, 2013 at 1:04 PM

Woodrow Wilson and the Progressives greatest legal hammer on individual wealth in the history of mankind.

Celebrate it Teaters.

PappyD61 on January 3, 2013 at 1:06 PM

I hope all the middle-class libs who voted for Obama are happily sucking this up. Had your eye on a new car or boat this year, folks? Might have to put that on hold a while.

Bon apetite! Since you, too, will have less bread, the crap in the sandwich will be more flavorful now.

Liam on January 3, 2013 at 1:08 PM

BUCK FARACK.

Nutstuyu on January 3, 2013 at 1:14 PM

…and BUCK FOEHNER

Nutstuyu on January 3, 2013 at 1:14 PM

All those who thought bho was better than sliced bread and voted for him might give a think of what the german people said after hitler took over, gave them jobs, took businesses and farms for the greater good, had his troops kill millions of people and those germans said (they lied to us) after they were defeated and their country distroyed!
L

letget on January 3, 2013 at 1:16 PM

I’m sorry, I can’t even objectionably read these types of articles without getting hung up questioning why the government thinks it’s OK to steal money straight out of people’s paychecks before they even see their own money themselves…. and how so many Americans – both left and right – go right along with it and don’t question the practice at all.

jr.ewing.78 on January 3, 2013 at 1:17 PM

Just looked at my paystub, since I get paid tomorrow. Already hit with this.

F*** you, Congress.

Vyce on January 3, 2013 at 1:19 PM

so if the payroll tax cut had some amazing effect on the GDP, shouldn’t raising it back have the opposite negative drag on GDP?

Oh yeah, it was just to juice the economy before the 2012 election, just a quick sugar high

thurman on January 3, 2013 at 1:21 PM

I’m the tax man.

Yeah.

I’m the tax man.

BobMbx on January 3, 2013 at 1:27 PM

This was Nancy Pelosi’s phony little tax cut. Now there’s 2% less in the SS trust fund for every working adult.

Vera71 on January 3, 2013 at 1:27 PM

The other part of the the new tax rates is the cost of compliance: New software, more time for bookkeepers and accounting managers to readjust the withholding on paychecks. Then the CPAs that have to bone up on the info at tax time.

All of this is additional cost overhead for businesses and employees.

Pazman on January 3, 2013 at 1:29 PM

The first person of influence who calls the people to stop sending federal taxes to Washington will instantly become a national hero. Possibly a martyr, too – the Beast doesn’t take kindly to those who steal its food. But if such call is ever to be made, now’s the perfect time.

Archivarix on January 3, 2013 at 1:32 PM

Freedom is never more than one generation away from extinction.

We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States where men were free.

~Ronald Reagan

SD Tom on January 3, 2013 at 1:53 PM

The ‘new guidelines’ link in the story doesn’t work.

austinconservative on January 3, 2013 at 2:02 PM

“Freedom is never more than one generation away from extinction.

We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States where men were free.”

~Ronald Reagan
SD Tom on January 3, 2013 at 1:53 PM

Hate to break it to you, but we haven’t been free since the government lied it’s way to taxing our income. About a hundred a years. And how long has it been since the government was allowed to raid the Social Security stash? Reagan was a good talker when it came to individual rights, but by the time he came along our rights were well on the way to the trash heap.

HiJack on January 3, 2013 at 2:05 PM

I guess I really don’t understand the anguish over the payroll tax cut/reversal. I never did want them to cut it in 2010; we need to fund SS even more than we are with 6.2%…reducing it to 4.2% is just plain stupid. Letting it get back to where it’s been for years is more sane than keeping it at 4.2%.

Of course, re-vamping the whole SS scheme overall is what’s *really* needed, but that might never happen…

jwehman on January 3, 2013 at 2:06 PM

Death and taxes.

But … taxes never die. The exception to the rule.

Paul-Cincy on January 3, 2013 at 2:20 PM

Lest we forget that its even more for small businesses. That’s an extra 4% self-employment tax for me on top of what I’m already paying elsewhere. Yippee.

blammm on January 3, 2013 at 2:22 PM

* Nevermind on the 4% increase… Congress only cut the 2% off of the “employee portion” of self-employment tax. It’s still an extra 2% I shouldn’t have to pay into a mandatory retirement savings account from which I will never be able to draw once it goes insolvent.

blammm on January 3, 2013 at 2:30 PM

I got my email yesterday from corporate stating that the SS tax is now 6.2% which will be reflected in my net pay. I guess the promises a President makes in his first term doesn’t count in his second term. Bush’s “read my lips” got him fired.

lea on January 3, 2013 at 2:37 PM

Hey they left out the households making $0–and there are gonna be a lot more of those as jobs vanish in droves.

stukinIL4now on January 3, 2013 at 2:41 PM

It’s still an extra 2% I shouldn’t have to pay into a mandatory retirement savings account from which I will never be able to draw once it goes insolvent.

blammm on January 3, 2013 at 2:30 PM

This is the saddest part of the mindset of liberals. It’s one thing to be dependent on some form of government money to live on, but to want that life for your children and grandchildren is just crazy. My 25 year old son, who works full time, will now have to pay more taxes and penalties for the rest of his life because of spending his generation had nothing to do with. Whatever happened to wanting future generations to be more prosperous than past generations? When is the last time you even heard a Democrat use the word “prosperous”?

lea on January 3, 2013 at 2:44 PM

Don’t worry though, all that money is going into a lock box our benevolent government is maintaining for us. I for one welcome the masterful financial planners in the federal government to look after my wealth.

John2A on January 3, 2013 at 2:45 PM

This will save Social Security.

Thank you Bark.

CorporatePiggy on January 3, 2013 at 2:50 PM

Meet your new IRS withholding tables

…coming soon!
How much did you make?…
…….GIVE IT TO ME!

KOOLAID2 on January 3, 2013 at 3:00 PM

I guess I really don’t understand the anguish over the payroll tax cut/reversal. I never did want them to cut it in 2010; we need to fund SS even more than we are with 6.2%…reducing it to 4.2% is just plain stupid. Letting it get back to where it’s been for years is more sane than keeping it at 4.2%.

Of course, re-vamping the whole SS scheme overall is what’s *really* needed, but that might never happen…

jwehman on January 3, 2013 at 2:06 PM

I’m not anguished over it. But it is important to Joe Schmoe who has no idea but voted for Barry, and now their paycheck is going to be smaller. It was terrible policy to begin with. It doesn’t change the fact SS needs a complete overhaul.

torerodrizzle on January 3, 2013 at 3:12 PM

I am sure the 47% will not even see any deduction change in the EBT card.

tjexcite on January 3, 2013 at 3:26 PM

Erika, I’m glad the raising/expiration of this tax is on Obama’s watch. The GOP knew it was unsustainable if we were going to continue any sort of SS even at reduced levels, why not let it be “Obama’s fault”.

Tater Salad on January 3, 2013 at 1:04 PM

Who will ever blame obama where it will be heard by anyone who needs to hear it?

It’s not the reality, it’s the reporting. This will be blamed on Bush and/or republicans and it will work (again and again and again ad infinitum).

runawayyyy on January 3, 2013 at 4:27 PM

Just looked at my paystub, since I get paid tomorrow. Already hit with this.

Vyce on January 3, 2013 at 1:19 PM

Yep, today’s paycheck has the extra 2% in out of it.

GWB on January 3, 2013 at 4:35 PM

Huh? No pathetic little trolls to defend and object. Who knew?

Bmore on January 3, 2013 at 4:40 PM

My husband owns his own company and we pay ourselves salary from that. I paid us yesterday and it was roughly $50 extra out of $2,000. I noticed and went, “Whhhat?” Then I remembered and wondered what all those working people are going to think when they suddenly lose $100 a month out of their paychecks. And this is just the beginning!

UnderstandingisPower on January 3, 2013 at 6:15 PM