{"id":6896,"date":"2013-01-04T16:24:27","date_gmt":"2013-01-04T20:24:27","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=6896"},"modified":"2013-01-06T16:26:22","modified_gmt":"2013-01-06T20:26:22","slug":"question-of-the-week-why-did-my-paycheck-go-down-in-2013","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2013\/01\/question-of-the-week-why-did-my-paycheck-go-down-in-2013\/","title":{"rendered":"Question of the Week: Why Did My Paycheck Go Down in 2013?"},"content":{"rendered":"

This week\u2019s question comes from Courteney, an office manager.<\/span><\/p>\n

Courteney asks:<\/span><\/em><\/p>\n

I just received my first 2013 paycheck and it is a lot less than my last check from 2012. Why did my paycheck go down in 2013?<\/span><\/p>\n

Answer:<\/strong> The biggest impact most employees will see is the impact of the social security tax rate reverting to 6.2% after being 4.2% for 2011 and 2012.<\/span><\/p>\n

Net Pay to Decrease 2% for Many Employees<\/span><\/strong><\/p>\n

For employees whose wages are subject to social security tax, many will see net pay decrease by 2% of gross pay. Employees who participate in a \u00a7125 cafeteria plan must reduce gross wages by the amount allocated to the cafeteria plan. Other adjustments to gross pay that reduce social security wages may also impact the calculation.<\/span><\/p>\n

Social Security Wage Base Increases To $113,700 for 2013<\/span><\/strong><\/p>\n

The social security wage base increased from $110,100 in 2012 to $113,700 in 2013. Combined with the increase in the rate to 6.2%, the maximum social security tax withholding went from $4,624.20 in 2012 to $7,049.40 in 2013, or an increase of over 52%.<\/span><\/p>\n

Federal Withholding Essentially Unchanged for Most Employees in 2013<\/span><\/strong><\/p>\n

With the release of Notice 1036 in January 2013, Vision Payroll has revised its withholding to comply with the guidance from the Internal Revenue Service (IRS). Most employees will see a small decrease of anyway from a few cents to just under $10 on a weekly paycheck, depending on federal taxable wages. Employees who earn more than $7,991 on a weekly basis will see federal withholding gradually increase over 2012 amounts. Since the highest rate is now 39.6% in 2013 compared to 35% in 2012, the differential will increase as taxable wages increase.<\/span><\/p>\n

Vision Payroll Now Using Revised 2013 Withholding Tables for Federal Income Tax Withholding<\/span><\/strong><\/p>\n

As noted above, Vision Payroll has implemented the revised 2013 withholding tables for federal income tax withholding that were released by the IRS in Publication 1036.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

This week\u2019s question comes from Courteney, an office manager. Courteney asks: I just received my first 2013 paycheck and it is a lot less than my last check from 2012. Why did my paycheck go down in 2013? Answer: The biggest impact most employees will see is the impact of the social security tax rate […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[1200,652,73,551,44,178],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6896"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=6896"}],"version-history":[{"count":4,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6896\/revisions"}],"predecessor-version":[{"id":6898,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6896\/revisions\/6898"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=6896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=6896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=6896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}