Social Security Tax Increase Starting January 1, 2013
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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).
Clergy Financial Resources
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