2013 Social SecurityTax Changes

 As you may know, recent legislation passed by Congress has allowed the Social Security Payroll Tax Holiday to expire, effective December 31, 2012.

If you recall, prior to the tax holiday, 6.2% of your income (up to the annual limit) was withheld for Social Security.  The “holiday” lowered the Social Security tax withholding rate to 4.2%, which has been the rate from January, 2011 through December, 2012.  With the expiration of the tax holiday, the Social Security tax withholding rate reverts back to 6.2% effective January 1, 2013 and will be in effect starting with the first paycheck you receive this year.

If you took advantage of the recent tax holiday by increasing your voluntary retirement contributions by 2%, and would now like to re-set your voluntary retirement contributions, you may do so by completing a Salary Reduction Agreement.  Please understand that you are not required to make any changes to your voluntary retirement contributions.  Please be sure to consult with your legal or tax advisor before participating in the 403(b) plan.  Baylor University does not provide legal or tax advice.     

Salary Reduction Agreement

http://www.baylor.edu/content/services/document.php?id=39909

Salary Reduction Agreement – Roth

http://www.baylor.edu/content/services/document.php?id=38915

For assistance, please contact Human Resources at 710.2000.