On March 18, 2010, the Hiring Incentives to Restore Employment

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On March 18, 2010, the Hiring Incentives to Restore Employment
Important Announcement Regarding
Employment Taxes & Limitations for 2013
Effective January 1, 2013 the following changes will affect you and your employees taxes:
The 401(k) and 403(b) limitations will increase to $17,500.
The catch-up contribution limit (aged 50 and over) will increase to $5,500.
There will be no increase in Simple IRA limits. It will remain at $12,000 and the
catch-up contribution limit (aged 50 and over) will remain at $2,500.
The annual exclusion for gifts rises to $14,000.
The wage base for computing the Social Security tax will increase to $113,700.
There is no wage base limit for Medicare Tax.
The 2% reduction for employee paid FICA expires 12/31/2012 unless extended.
FICA tax will be 6.2% for both the employee and employer.
The employee Medicare tax percentage will increase to 0.9% for wages in excess of
the amounts listed below (based on filing status).
 Married filing jointly - $250,000 in combined wages (this could make the tax
applicable to wages at or below $200,000)
 Single - $200,000
An additional 3.8% Medicare tax on net investment income for modified adjusted
gross income over the amounts listed below based on filing status.
 Married filing jointly - $250,000
 Single - $200,000
 Married Filing Separately - $125,000
Compliments of:
Patty Kelly Neises, CPA
207 East Ninth Winfield, Kansas 67156

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