The Social Security rate
The 2013 Social Security withholding rate increased to 6.2%, up from 4.2% in 2012. The Social Security wage limit in 2013 is $113,700.
The health care reform law requires high income earners (those earning more than $200,000 or $250,000 if filing a joint tax return) to pay an additional 0.9% in the Medicare payroll tax plus the 1.45% tax already in place. If this affects you, the adjustment will start with the pay period in which your wages exceed $200,000.
updates to your Form W-2
In January, when you receive your 2012 Form W-2, you'll see a new dollar amount listed in Box 12 coded DD. This is the dollar amount that the University of Minnesota paid for your health benefit programs during 2012. This is included as information only and doesn't affect your tax rate or your tax deductions in any way. It's there to show the dollar value of your benefits and to comply with the federal health care reform law.
For questions about payroll and tax deductions, please visit the University Office of Human Resources website or call 612-625-2016.
Assistant Director, Human Resources