For 2013, the employee tax rate for social security increases to 6.2%. The social security wage base limit increases to $113,700.
According to the IRS, employers should implement the 6.2% employee social security tax rate as soon as possible, but not later than February 15, 2013. After implementing the new 6.2% rate, employers should make an adjustment in a subsequent pay period to correct any under withholding of social security tax as soon as possible, but not later than March 31, 2013.
Sage has released new tax tables to support the new social security tax calculations and the newly legislated rates that address the “Fiscal Cliff”.
For Sage 50 (formerly Peachtree) please be sure to allow the automatic update to run.
For Sage 300 ERP (formerly Accpac) be sure to install the Tax Table Update and the HotFix 210-1003930 (http://bit.ly/VGD6fD)
Give us a call at 301-596-9945 if you need any help installing or correcting if the proper tables were not installed before the first payroll of 2013.