Pennsylvania Unemployment Compensation Tax
The taxable wage base for employers has increased from $8,000 to $8,500 for the 2013 tax year. The taxable wage base is scheduled to continue to increase annually over the next six (6) years until it reaches a taxable wage base of $10,000 in 2018.
Meanwhile, the Pennsylvania unemployment withholding rate on employees wages has decreased from .08% (.0008) to .07% (.0007) for 2013.
2013 Social Security Tax
As we mentioned in an earlier Insight, Congress chose not to extend the payroll tax cut, which began in 2011. As a result, the withholding rate on wages for all employees increased from 4.2% to 6.2%, which will result in a decrease in employees take-home pay in 2013.
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