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IRS Issues ATRA-Related Withholding Table

The IRS recently announced the new tax withholding tables resulting from the American Taxpayer Relief Act, a.k.a the fiscal cliff legislation. Employers should begin withholding Social Security tax at the rate of 6.2% percent 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 ATRA. The Social Security wage base limit increased to $113,700 for 2013.

Withholding changes should be made ASAP but no later than Feb. 15, with appropriate adjustments no later than March 31. The full table is here.

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