Skip to content

Social Security Tax Increase Starting January 1, 2013

November 7, 2012

NOTE: The Clergy Tax Law Blog now resides on Clergy Financial Resources’ website. Please click on the follow link to visit the Clergy Tax Law Blog at its new home:

http://clergytaxnet.com/blog/

Over the past two years, there has been a “payroll tax holiday” in effect. This reduced the employee’s share of Social Security from 6.2% to 4.2%. This “payroll tax holiday” is scheduled to expire on December 31, 2012. Non-clergy employees will have an additional 2% of Social Security tax withheld from their paychecks starting on January 1, 2013. Since clergy are exempt from SS/Medicare withholding, they will not see this change impact them until they complete their 2013 taxes in the Spring of 2014. However, clergy should contact a knowledgeable clergy tax professional to see if this will affect their estimated payments. In terms of dollars and cents, for most taxpayers, for every $10,000 earned, an extra $200 of tax liability will be created(automatically withheld for secular employees).

Source:
Clergy Financial Resources

http://www.clergytaxnet.com

Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations

Advertisements

From → Clergy Tax Law

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: