“…some employees may see their take-home pay shrink in 2013 due to higher Social Security and Medicare taxes.
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 from $110,100 as of January 2013, the U.S. Social Security Administration (SSA) announced on Oct. 16, 2012.
Social Security and Medicare payroll withholding are collected together as the Federal Insurance Contributions Act (FICA) tax.
By January 1, U.S. employers should adjust their payroll systems to account for the higher taxable maximum under the Social Security portion of FICA, and notify affected employees that more of their paychecks will be subject to FICA.”
Read the entire article on the SHRM website.