2013 Social Security Changes

Payroll tax cut ends. The temporary payroll tax cut which began in 2011 was allowed to expire at the end of 2012. Workers will now resume contributing 6.2% of their earnings in 2013, up from the 4.2% rate that was in effect during 2011 and 2012.

Higher wage base. Social Security tax must be paid (by both the employee and the employer) on the first $113,700 of wages in 2013. This is an increase of $3,600 over the 2012 wage base of $110,100.

More online services. Starting in 2012, workers could access their Social Security statements, including their earnings history, and check on their estimated benefits at various retirement ages. Additional online services available in 2013 include the ability to access a benefit verification letter and payment history, change addresses, and start or change direct-deposit of benefits information. For years, individuals have had the ability to apply for benefits online.

Paper checks will end. Most Social Security recipients (about 93%) already receive their benefits electronically. On March 1, 2013, the Treasury Department will stop mailing paper checks to Social Security recipients. Retirees will be required to choose to have their Social Security payments either directly deposited into a bank or credit union account or loaded onto a prepaid Direct Express Debit MasterCard. The debit card is primarily for benefit recipients who do not have a bank account.

Higher earnings limit. Beneficiaries between the ages 62 and 66 who are also working can earn up to $15,120 in 2013, after which $1 in benefits will be withheld for every $2 of earned income above the earnings limit. 

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

The IRS turns its focus to cryptocurrency
Kress Case Addresses S Corporation vs. C Corporation Issues
Not-for-Profit, Tax BY Preet Mann
Mandatory E-Filing of Nonprofit Tax Returns
Tax Credits for Plug-In Electric Drive Vehicles
2019-2020 Pennsylvania Budget
Due to Feedback, IRS is Brainstorming Other Ways to Calculate the Tax on Parking

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222

p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215

p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102