FICA max rises to $113,700 for 2013

October 17th, 2012 by Joe Kristan

The Social Security Administration has announced that the maximum earnings subject to the 6.2% FICA tax rises to $113,700 for 2013.  It had been $110,100 for 2012.   That same cap applies to the 12.4% retirement portion of self-employment tax.

The maximum FICA tax rises by as much as $2,425 because the temprorary reduction in employee FICA to 4.2% expires at the end of this year.  The maximum FICA withholding for 2013 will be $7,049.40, up from the 2012 maximum of $4624.20.

The 2.9% medicare tax, split between employees and employers, has no wage or self-employment income cap.

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