[All_staff] 2013 Payroll Tax, 401(k), and W-2 Update

[Janet Smith]

*2013 Payroll Information effective with your January 15, 2013 pay check:*

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_Tax Rate Changes_

One of the recent changes in the legislation passed by Congress affects 
Social Security (FICA) taxes withheld from employees' pay 
checks.Effective January 1, 2013, the employee share of Social Security 
increased from 4.2% to 6.2%, resulting in more FICA taxes being withheld 
from your pay check.The 2013 Social Security wage base limit increased 
to $113,700, which is up from $110,100 in 2012.

Additionally, the Medicare tax rate will increase 0.9%, from 1.45% to 
2.35%, on wages paid over $200,000 in a calendar year.This additional 
tax only applies to wages that exceed the $200,000 threshold, not to the 
first $200,000.

The American Taxpayer Relief Act imposed a new tax rate for single 
individuals with taxable income above $400,000; married couples filing 
joint returns with taxable income above $450,000; and heads of household 
with taxable income above $425,000. Income above these thresholds will 
be taxed at a 39.6 percent rate, effective January 1, 2013.

_401(k)_

As a reminder, the open enrollment period for the 401(k) Group 
Supplemental Retirement Annuity contributions was held from December 4, 
2012 through December 14, 2012.If you did not go into the system to opt 
out or change the amount, your 401(k) contribution for 2013 will be 5% 
of your current base salary.If you wish to change your 401(k) for future 
checks, you must complete a paper form with the Human Resources Department.

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W2 Information:*

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_2012 W-2 Changes based on the Patient Protection and Affordable Care Act_

The Affordable Care Act requires employers to report the cost of 
coverage under an employer-sponsored group health plan on an employee's 
Form W-2.The amount reported does not affect tax liability, and the 
purpose of the reporting requirement is to provide employees useful and 
comparable consumer information on the cost of their health care coverage.

The 2012 W-2s will be mailed by January 31, 2013 to your address on file 
in the timesheet system.Please verify your address in the Deltek Time 
and Expense system (the timesheet/ESS system) under the Personal section 
on the left side of the screen, especially if you have moved within the 
last year.


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