PAYROLL -- 2013 TAX WITHHOLDING
* Social Security tax for 2013 - Social Security withholding will return to the 2010 level of 6.2% from the current 4.2%. The wage limit on which Social Security tax is calculated will increase for 2013 from $110,100 to $113,700.
* Medicare tax for 2013 -- The current Medicare tax rate has not changed over the last few years and will remain at 1.45% up to $200,000.
* Beginning in 2013 Medicare tax increases to 2.35% for wages received in excess of $200,000.
* Due to the late signing of the tax law, the 2013 federal income tax withholding tables were in place for payrolls beginning on January 29, 2013.
* The State of Iowa income tax withholding tables will not change for 2013. However, you may see an adjustment in Iowa income tax withholding on future paychecks as Iowa income tax withholding tables include federal withholding in the calculation of Iowa tax withholding. Depending upon how your federal income withholding may change on future paychecks, it could have an effect on your Iowa income tax withholding.
The University of Iowa is unable to give tax advice. Please consult with a professional income tax consultant if you have questions regarding how these changes might affect your personal tax situation.