You can start looking for the extra 2% Social Security payroll tax to be withheld from your paycheck right away… The IRS released updated withholding tables for 2013 today following on the heels of the “fiscal cliff” agreement reached in Congress.
“Employers should implement the 2013 withholding tables as soon as possible, but not later than February 15, 2013,” the IRS said in a statement.
The IRS had issued withholding tables December 31 but those immediately became outdated with the new law signed this week.
For 2013, the employee tax rate for social security increases to 6.2% from 4.2%. The social security wage base limit increases to $113,700.
The cost-of-living adjustment that Social Security recipients will receive, beginning in their January payments, will be 1.7%.