Dear
Business Organization:
As
you know, Congress passed and the President has signed into law some tax law
changes earlier this week. The payroll tax rates were not affected by this
week’s legislation, which means the temporary two-percentage-point payroll tax
cut in effect for 2011 and 2012 has now expired.
I
wanted to be sure and get the information below to you as soon as possible.
Below
is the news release which was posted today to IRS.gov. Within the release
is a link to Notice 1036, which
contains the percentage method income tax withholding tables, the new Social
Security withholding rate, and related information that most employers need to
implement these changes. IRS is asking employers to adjust their payroll
systems as soon as possible, but not later than Feb. 15, 2013.
Please
make sure your members are aware of the new law and the Notice1036, which contains the information employers will need to
implement the new rates.
Please
continue to monitor www.IRS.gov for the latest updates. As
new information becomes available, I will also send it to you directly.
Kari Gilje
Senior Stakeholder Liaison
IRS Communications & Stakeholder Outreach
Ph 206.220.5469
kari.s.gilje@irs.gov
IRS Provides Updated Withholding Guidance for 2013
http://www.irs.gov/uac/Newsroom/IRS-Provides-Updated-Withholding-Guidance-for-2013
The
Internal Revenue Service today released updated income-tax withholding tables
for 2013 reflecting this week’s changes by Congress.
The
updated tables, issued today after President Obama signed the changes into law,
show the new rates in effect for 2013 and supersede the tables issued on
December 31, 2012. The newly revised version of Notice1036 contains the percentage method income-tax withholding tables
and related information that employers need to implement these changes.
In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by this week’s legislation.
Employers
should start using the revised withholding tables and correct the amount of Social
Security tax withheld as soon as possible in 2013, but not later than Feb. 15,
2013. For any Social Security tax under-withheld before that date, employers
should make the appropriate adjustment in workers’ pay as soon as possible, but
not later than March 31, 2013.
IRS Statement on Jan. 1 Tax Legislation Passed by Congress
http://www.irs.gov/uac/Newsroom/IRS-statement-on-tax-legislation-recently-passed-by-Congress
The
IRS is currently reviewing the details of this week's tax legislation and
assessing what impact it will have on this year's filing season. The IRS will
soon make available additional information on when taxpayers can start filing
2012 tax returns. On Jan. 3, 2013, the IRS issued IR-2013-1 providing
updated withholding guidance.
