As we get closer to 2013,there are several new tax changes coming into play thatwill affect millions of employees across the United States. While the list of these taxes can be overwhelming, we wanted to list a few that will impact many in the workforce today.
The IRS has announced that the Social Security wage base for 2013 will be $113,700. Additionally, assuming Congress doesn’t extend the current payroll tax cut, the Social Security tax rate will go back to 6.2%.
Health flexible spending account (FSA) contributions will be limited to $2,500 for plan years beginning after December 31, 2012.
The annual gift tax exclusion increases from $13,000 to $14,000 for 2013.
Retirement plan limits for 401(k), 403(b), and most 457 plans in 2013 increase from $17,000 to $17,500. The catch-up contribution limit for employees aged 50 and older stays at $5,500.
The annual IRA contribution limit increases from $5,000 to $5,500 for 2013. The catch-up contribution for individuals aged 50 and older stays at $1,000.
The income limits for making deductible IRA contributions increased as well.
As a reminder, PEO clients receive continuous update and support related to employment tax regulations and obligations, as well as other regulatory changes. Contact the LL Roberts Group today and find out how a PEO can assist you with your employee administration needs and to ensure your company’s compliance with constantly changing laws and regulations. Call us (toll free) at 877.878.6463 and ask to speak with an LL Roberts Group PEO Consultant.