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It's my understanding that unless congress does something by 12/31/12 the SS tax withholding amount is 6.2% for 2013.

Is that correct?

I have payroll to do on the 1st and the 5th....so I use the 6.2$ right?

Jean
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It's my understanding that unless congress does something by 12/31/12 the SS tax withholding amount is 6.2% for 2013.

Is that correct?


Yep.

I have payroll to do on the 1st and the 5th....so I use the 6.2$ right?

6.2% for SS wages paid in 2013 is the current law. It will take an act of Congress to change it. I'm not holding my breath for that.

Another question is what to withhold for Federal income taxes. I believe the IRS hasn't issued withholding tables for 2013 yet.

--Peter
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6.2% for SS wages paid in 2013 is the current law. It will take an act of Congress to change it. I'm not holding my breath for that.

Another question is what to withhold for Federal income taxes. I believe the IRS hasn't issued withholding tables for 2013 yet.

--Peter
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How much you want to bet Congress extends the 4.2% and makes it retroactive? Geezzz, I hate it when they do stuff like that.

I don't think WH is as difficult to deal with. Of course, it depends on how much the rates change.

So what do the employers do that have payroll the first week in Jan?
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How much you want to bet Congress extends the 4.2% and makes it retroactive? Geezzz, I hate it when they do stuff like that.

I'll take that bet as long as the stakes are reasonable. A batch of my award-winning peanut brittle on this end?

The payroll tax holiday, masked originally as the "Making Work Pay Credit," was a temporary measure to stimulate the economy. I haven't heard any broad support for extending it. With the economy in recovery and talk about the necessity of reining in entitlement spending I don't expect it to be renewed.

I don't think WH is as difficult to deal with. Of course, it depends on how much the rates change.

I imagine that the payroll services and payroll software developers already have 2013 income tax withholding information based on current 2013 law. It's much easier to smoosh this once the dust settles since they have all the way to 12/31/2013 to balance things out. I imagine that if IRS doesn't have word of a firm deal by the 26th there will be a mailing to all employers.

A bigger problem is if there is an agreement. While the inflation adjustments are old news, nobody knows what they might come up with beyond the 25% bracket even if they leave the lowest three in place. There may be multiple versions sitting around IRS HQ waiting for a puff of white smoke, but I suspect there's also a lot of hair pulling.

Phil
Rule Your Retirement Home Fool
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I'll take that bet as long as the stakes are reasonable. A batch of my award-winning peanut brittle on this end?

The payroll tax holiday, masked originally as the "Making Work Pay Credit," was a temporary measure to stimulate the economy. I haven't heard any broad support for extending it. With the economy in recovery and talk about the necessity of reining in entitlement spending I don't expect it to be renewed.
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The peanut brittle sounds wonderful. But, Hmmmm, I'm not a cook. I do plants, but dirt is expensive to ship and I won't be doing them until spring. Oh, I crochet. How about a afhgan?

I hope you are correct and it is not extended. I didn't like the reduction in the first place.

My accounting software seldom has the new tables ready the first week in Jan. I've searched for a different program, but haven't found one that does inventory like the one I have. I need more than one part number for each part since we buy the same part from various supplers that use different numbers.

They program adjustments so the next payday makes up for the changes from the first.
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The peanut brittle sounds wonderful. But, Hmmmm, I'm not a cook. I do plants, but dirt is expensive to ship and I won't be doing them until spring. Oh, I crochet. How about a afhgan?

You're on! Definitely something I couldn't begin to do for myself.

Phil
Rule Your Retirement Home Fool
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So what do the employers do that have payroll the first week in Jan?

What do the companies (e.g,. TurboTax, TaxACT, etc.) that write tax programs do? It takes time to write tax programs, time to test them, time to write instruction manuals (whether on line or in paper form).

Some last minute changes require only changes to numbers in tables, but some require changes in the logic of the programs to follow the tortured logic of the congressmen who write the laws with little logical ability.
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What do the companies (e.g,. TurboTax, TaxACT, etc.) that write tax programs do? It takes time to write tax programs, time to test them, time to write instruction manuals (whether on line or in paper form).

Some last minute changes require only changes to numbers in tables, but some require changes in the logic of the programs to follow the tortured logic of the congressmen who write the laws with little logical ability.


Don't forget the IRS in this scenario. What happens is that certain types of returns can't be filed until everyone's ready, both to produce them and process them. I don't remember the details or the year (2010?), but it was sometime in February before returns claiming itemized deductions could be filed.

Phil
Rule Your Retirement Home Fool
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It looks like I'm going to need your address.

UPS is easier for me, but if USPS is easier for you I can ship that way.

I really don't mind loosing this bet.

Jean
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Shipped UPS today. Scheduled delivery Feb 7.

Looks like a box of micro-wave popcorn.

Jean
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