2013 Social Security Tax Increase

As you may have already heard, part of the tax changes taking effect for 2013 include an increase to the Social Security tax (Fed OASDI/EE as it is stated on your North Shore-LIJ pay statement.) 

In 2012, the Social Security tax had been lowered to 4.2% based on a payroll tax cut that expired Dec. 31, 2012, and it was determined by the government to not be extended further.

Social Security will now be taxed at 6.2% on annual earnings for salaries up to $113,700. 

How does this impact me?

To determine how you are personally taxed, simply take your annual pay and multiply it by 6.2%.  For example:  an employee making $35,000 annually would multiply 35,000 × .062 for a total of $2,170 in 2013.  The previous tax would be 35,000 × .042, for a total of $1,470.

Calculate your Social Security tax:  (salary × .062) = the amount withdrawn in 2013

Salary	Amount Withdrawn in 2013	Amount Withdrawn in 2012
$35,000	$2,170	$1,470
$50,000	$3,100	$2,100
$65,000	$4,030	$2,730
$90,000	$5,580	$3,780
$113,700 (maximum)	$7,049	$4,775