Payroll Updates
for 2013
The Payroll Advisor™
Your Source for Payroll Training Since 1989
We list all of the news flash updates as they come across our desk for 2013 here after they are sent out to our subscribers. To have these important news flashes come immediately to your inbox and to receive our general weekly updates please sign up for our newsletter.
3-18-13: IRS released the 2013 instructions for the Form W-2. No assistance is given on how to reconcile Medicare taxes.
3-7-13: IRS released the 2013 Version of the Form W-2. There are no changes to the form. It is identical to the 2012 version. The new Additional Medicare Tax will be reported as all other Medicare taxes and wages. The wages will be reported in Box 5 and the tax withheld will be reported in Box 6. The instructions for the form are still pending.
2-5-13: The IRS has released the 2013 Publication 15, Circular E. It is available on the IRS website or click the link below:
2-5-13: The IRS has released the 2013 Publication 15-A, Employer's Supplemental Tax Guide. It is available on the IRS website or click the link below:
1-30-13: The IRS has released the 2013 version of Publication 1494 Tables for Figuring Amount Exempt from Levy on Wages, Salary and Other Income. It is available on the IRS website or click on the link below:
1-16-13: The IRS has released the 2013 version of the Form W-4. It is available on the IRS website or click below.
1-03-13: The IRS has issued the early release copies of the 2013 Percentage Method tables. They are contained in Notice 1036. The notice also includes the withholding tables for nonresident aliens and explanation for social security and Medicare rates. Click on the link below to access the notice:
1-02-2013: The IRS has released the draft version of the 2013 Form 941. The major changes includes a new line 5d Taxable wages & tips subject to Additional Medicare Tax withholding. For a PDF version of the draft form, click on the link below:
11-21-12: Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
•
56.5 cents per mile for business miles driven
56.5 cents per mile for business miles driven•24 cents per mile driven for medical or moving purposes
24 cents per mile driven for medical or moving purposes•14 cents per mile driven in service of charitable organizations
14 cents per mile driven in service of charitable organizationsThe rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.
For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 23 cents per mile for 2013.
For purposes of computing the allowance under a FAVR plan, the standard automobile cost may not exceed $28,100 for automobiles (excluding trucks and vans) or $29,900 for trucks and vans.
10-18-16: IRS Releases New 2013 Limits for the following:
Pension Plans:
The IRS has released the following pension plan limits for 2013:
•The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,000 to $17,500.
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,000 to $17,500.•The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $5,500.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $5,500.•The limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $200,000 to $205,000.
The limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $200,000 to $205,000. •The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2013 from $50,000 to $51,000.
The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2013 from $50,000 to $51,000.•The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $250,000 to $255,000.
The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $250,000 to $255,000.•The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remains unchanged at $115,000.
The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remains unchanged at $115,000.For a text of the complete notice click here
Medical Savings Accounts:
For Self-Coverage Only: The term “high deductible health plan” means a health plan that has an annual deductible that is not less than $2,150 and not more than $3,200 and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,300.
For Family Coverage: The term “high deductible health plan” means a health plan that has an annual deductible that is not less than $4,300 and not more than $6,450 and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $7,850.
Foreign Earned Income Exclusion:
The foreign earned income exclusion amount for 2013 is $97,600.
10-16-12: Social Security Administration has announced the 2013 social security taxable wage base. The wage base will increase to $113,700. This is up from $110,100 for 2012.
