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| INFORMATIONAL CIRCULAR NO. 13-P-005 |
Supersedes 12-P-018 |
| DATE: |
October 19, 2012 |
| SUBJECT: |
Change in Social Security Base Rate |
| EFFECTIVE DATE: |
January 1, 2013 |
| A & R CONTACT: |
Amanda Entress
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(785) 296-3887
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(Amanda.Entress@da.ks.gov)
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| APPROVAL: |
Nancy Ruoff
(Original Signature on File) |
| SUMMARY: |
Social Security Wage Base Increase to $113,700 effective January 1, 2013
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The Social Security wage base for OASDI will be $113,700 for calendar year 2013. This is a $3,600 increase from the wage base of calendar year 2012 of $110,100. The OASDI tax rate for 2013 will be 6.2% for both employees and employers. (Note that the 2012 OASDI tax rate was 4.2% for employees and 6.2% for employers under the Middle Class Tax Relief and Job Creation Act of 2012, and that rate is scheduled to be 6.2% for both employees and employers in 2013. However, bills currently being considered in Congress may change this.) If no changes are passed by Congress, the maximum OASDI employee contribution for 2013 will be $7,049.40. There continues to be no limit on wages subject to the Medicare tax in 2013. Medicare tax rates for employers and employees remain at 1.45%. However, beginning in calendar year 2013, wages paid in excess of $200,000 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax. Office of General Services staff are closely tracking legislation pending in Congress and additional informational circulars will be issued as necessary to communicate any changes for 2013 resulting from Federal Legislation.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $7,049.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Office of General Services, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
MJ:NTR:kao
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