Tax changes for 2013 (whats known so far)

Tax changes for 2013 (whats known so far)

Payroll officers cannot plan for adjustments to withholding for 2013 with any accuracy until we know the results of the budget talks in Congress. Heres what we know now.

The Social Security Old Age Survivors and Disability Insurance (OASDI) taxable wage base for 2013 increases to $113,700 from $110,100.

On January 1, employees Social Security contributions will rise to 6.2 percent from 4.2 percent.

This change is caused by the expiration of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

Individuals whose annual wages and compensation is more than $200,000 will be subject to an additional 0.9 percent Medicare tax.

Retirement and pension plans: The 2013 limit on the exclusion for elective deferrals in Section 401(k)-type plans, Sec. 403(b) plans and most Sec. 457 plans will be $17,500, up from $17,000 in 2012. The catch-up contribution limit for those 50 and older remains unchanged at $5,500.

The standard mileage rate will rise to 56.5 cents per mile for business miles driven and 24 cents per mile for medical or moving purposes and remain at 14 cents per mile for service of charitable organizations.