Abigail 03:35 PM 01-05-2013
Has the social security amount changed for employees for 2013? I have an employee who works 30 hours or so each week at my daycare and her first pay period week just ended yesterday on Friday January 4th. I pay her this coming Monday January 7th for the last two weeks that she worked. Even though some of those hours in this last payperiod were 2012, it's all taxes on 2013 taxes right? Do I need to change the amounts I've been with-holding before writing her a paycheck for this last payperiod?
TomCopeland 08:27 AM 01-06-2013
The rules for withholding taxes for employees changed with the fiscal cliff law that was recently passed. The employer share of Social Security taxes rose by 2% over 2012. So, the total employer share of Social Security/Medicare taxes for 2013 is 7.65%, up from 5.65% last year. You must account for the different tax rates if some of this pay was for 2012. Since the law was passed in 2013 it made it complicated for employers. I'm not sure what the IRS is doing about this, so you may want to contact them (800-829-1040).
Abigail 04:03 PM 01-06-2013
I am printing off 2013 withholding tax forms for federal and state and came across this:
http://www.irs.gov/pub/irs-pdf/n1036.pdf
Social Security for employees is now 6.2% instead of 4.2% and the Medicare withholding is still 1.45% so you are right everything total 7.65% instead of 2012's 5.65%. WOW that will make a difference in their take-home pay too.
This is my first year of business and I've had an employee just part time through part of this year. What I don't know how to do is to actually "pay" social security, medicare, federal, and state for them. It's withheld from their check I write them myself but I have not sent the money anywhere. Is this done quarterly or annually? Where would I find this information to send a check in soon for my employee?
For how much (or little) income I made this year I plan on having my husband's income cover my federal and state.
suehelen 03:30 AM 01-07-2013
Go to
www.irs.gov. There is tons of information on paying employees there. You'll have to register with your state as well to pay your state income taxes and your unemployment. Federally, the 941 is filed quarterly (at least that's how I did it). You also have to file your Federal Unemployment Tax form once a year.