IRS provides updated withholding guidance for 2013.

Position:FINANCIAL SERVICES - Internal Revenue Service - Editorial

Editor's note: At press time the Internal Revenue Service was reviewing the details of the new tax legislation and assessing what impact it will have on this year's filing season. The IRS expected to soon make available additional information on when taxpayers can start filing 2012 tax returns. At press time, a brief had been issued, which we've reprinted below, as well as a revised version of Notice 1036, which employers will need for payroll and can download from the IRS website.

IR-2013-1, Jan. 3, 2013--WASHINGTON--The Internal Revenue Service on Jan. 3 released updated income-tax withholding tables for 2013 reflecting the Jan. 1 changes by Congress.

The updated tables, issued Jan. 3 after President Obama signed the changes into law, show the new rates in effect for 2013 and supersede the tables issued on December 31, 2012. The newly revised version of Notice 1036 contains the percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by the Jan. 1 legislation.


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