- Applications for Coffin Grants and Summer Stipends
- Faculty and Staff Appreciation Days at the Bookstore
- Attention Academic Year Employees: Dec. 6 Paycheck to Include One-Time Adjustment
- United Way Campaign Extended to Dec. 9
2013 Tax Changes – Update
On Jan. 2, 2013, President Barack Obama signed into law the American Taxpayer Relief Act of 2012 (ATRA 2012; H.R. 8). The new law permanently fixes income tax rates at the levels established by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA, Pub. L. 107-16) that were extended through 2012, except for a new higher rate for certain high income taxpayers.
2013 Withholding Tables Issued
The 2012 tax rates of 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, and 35 percent will remain in effect, with no expiration date. The Act of 2012 establishes a new 39.6 percent bracket for certain high income taxpayers, generally those with taxable income over $400,000.
Employee Social Security Tax Rate Goes Back to 6.2 Percent
Employees' net pay will generally go down because the act does not extend the reduced 4.2 percent employee Social Security tax rate to wages paid after Dec. 31, 2012. The employee tax rate for all Social Security wages paid in 2013 up to the wage base of $113,700 is 6.2 percent.
Supplemental Withholding: Optional Rate Stays at 25 Percent
The optional flat rate for federal income tax withholding from supplemental wages up to $1 million remains at 25 percent.
Educational and Adoption Assistance Exclusions Now Permanent
The income exclusion for up to $5,250 per year of non job-related undergraduate and graduate educational assistance provided by an employer to an employee has become permanent, with no expiration date. Also, the income exclusion for employer-provided adoption assistance is now permanent.