KFMR

Financial Fitness - Fall 2012

 2013 Wage/Tax Facts Quick Reference Guide

 

FEDERAL

Minimum Wage
Effective 7/24/09 $7.25
 
Minimum Cash Wage
Tipped Employee $2.13
 
Maximum Tip Credit
Effective 7/24/09 $5.12
 
Youth Sub-Minimum Wage
First 90 Days of Employment $4.25
 
FICA (Social Security)
Maximum Taxable Earnings $113,700
Employee/Employer Deduction 6.20%*
Self-Employment Tax 12.40%*
*The employee Social Security deduction may remain at the 2012 level of 4.2% depending upon future Congressional legislation. The employer deduction will remain at 6.2%.
 
FICA (Medicare)
Maximum Taxable Earnings No Limit
Employee/Employer Deduction 1.45%**
Self-Employment Tax 2.90%
**An additional .09% Medicare tax will apply to wages greater than $200,000 (single), $250,000 (married filing jointly) and $125,000 (married filing separately).
 
Supplemental Wage Bonus
Rate (Flat Rate Method)
Under $1 million 25%
Over $1 million 35%
 
FUTA (Employer-paid)
Maximum 2013 Taxable Earnings $7,000
Percent of Taxable Wages 6.00%
Maximum Credit 5.10%
Normal Net Tax 0.09%***
***20 states, including PA, were affected by the reduction of the FUTA credit due to amounts borrowed from the federal government.
 
Mileage Reimbursement Rate
2012 $0.55
2013 not available at printing
 

PENNSYLVANIA

ALL EMPLOYERS
Minimum Wage
Effective 7/24/09 $7.25
Note: Learners, students and certain disabled workers may be paid as little as 85% of minimum wage with a special certificate. If a student is paid less than minimum wage, they may only work 20/wk.
 
Minimum Cash Wage
Tipped Employee $2.83
Note: Employee must receive at least $7.25 per hour when wage and tips are combined. If not, the employer must make up the difference.
 
State Income Tax
Wage Withholding 3.07%
 
Unemployment Insurance
Maximum 2013 Taxable Earnings $8,500
Employee 2013 Deduction 0.07%
Note: Maximum taxable employee earnings
are unlimited.
 

SOCIAL SECURITY

Early Retirement Age $15,120/yr.****
  ($1,260/mo)****
Note: One dollar in benefits will be withheld for every
$2 in earnings above the limit.
 
Full Retirement Age $40,080/yr.****
  ($3,340/mo)****
Note: Applies only to earnings for months prior to
attaining full retirement. One dollar in benefits will
be withheld for every $3 in earnings above the limit.
There is no limit on earnings beginning the month
an individual attains full retirement age.
****Social Security beneficiaries will receive a 1.7% COLA for 2013.

Financial Fitness - Fall 2012

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