Federal income tax changes to your January paychecks
Obama administration and US congress have agreed to the 2013 federal income tax rates, but it may affect your January paychecks. The Washington leaders are busy in a talk about 2013 income tax negotiations, but still no final agreement has been reached. UC process the payroll payments to many employees early in January and you will continue with federal income tax rates of 2012 till President Barrack Obama and Congress reach a final agreement and implement new guidelines for 2013 federal income tax brackets.
The new tax rates will be published once IRS offers the official guidelines and organizations will need to upgrade their payroll structure accordingly. Federal income tax rates for 2013 will be published along with IRS publications and new payroll system will not make any adjustments after fully implementation of new tax rates. But it is important to know that January paychecks will reflect the two tax changes;
- The updated 2013 California income tax rates resulting from income passage of Governor Brown and sales tax initiatives for 2013, under proposition 30.
- QASDI social security of employee will be updated from current value of 4.2 percent to new value of 6.2 percent tax rate.
It means 25 percent federal income tax along with 38.3 percent Medicare payroll taxes and 13.3 percent social security are going to federal income tax in 2012. For a middle-class tax filer, the average state income tax is 4.82 percent, which brings 43.12% to state and federal taxes.
