FICA Increase

On Jan. 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 (H.R. 8). The legislation does not include an extension of the 2 percent payroll tax cut of the Social Security (FICA) employee tax. The employee-paid portion of the Social Security FICA tax increased on all wage earners from 4.2 percent to 6.2 percent beginning Jan. 1, 2013. The portion of the tax paid by employers remained at 6.2 percent of employee wages. ACU’s Non-Exempt employees saw this increase in taxes on the Jan. 15 payroll, and Exempt employees will see the increase in taxes on the Feb. 1 payroll.