2013 Payroll Tax
As of this morning (Saturday December 29, 2012) we are still waiting for the Internal Revenue Service to release the 2013 Payroll Tax rates. The IRS is expected to have an “Early Release Copy of the 2013 Percentage Method Tables for Income Tax Withholding” before the end of the day Monday (December 31, 2012). The IRS is waiting for the results of the “Fiscal Cliff Negotiations”, which are set to resume today, in order to update 2013 payroll tax rates accordingly.
As soon as we receive the new 2013 payroll tax tables from the IRS, our engineers will work on integrating them inside our Payroll Mate payroll software and push an update.
We are also waiting on a number of states to release their 2013 payroll tax rates. Some of these states, rely on the federal withholding schedules to adjust state income tax rates.
As of today (Saturday December 29, 2012), these are the states that have new payroll tax rates starting on January 1, 2013: California, Colorado, Georgia, Hawaii, Kansas, Kentucky, Maine, Maryland, Minnesota, Nebraska, New York, North Dakota, Oklahoma, Oregon and Rhode Island.
Employers in the following states are not required to withhold state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming and Washington.