The problem at my office is that the final 2 week pay of 2012 ending on 12/30/12 was taxed at the new tax rate because the check was printed in 2013. We’re trying to find out why.
I’m still trying to wrap my head around the tax increase when there wasn’t supposed to be on for the 97%. So, we get one our two (remember the Obamacare tax)and say like the GOP did, “It’s the best deal we can get”.
Of course we knew this was coming where the left side of the 97% believed their ‘messiah’ would take them to the promised land. He was (is) in paradise (Hawaii). All I see are the illegals of Los Angeles. Not very pretty.
You like most individual taxpayers use the cash basis of accounting. Money is earned when the cash (equivalent) is received, not when the work is performed. That check is your first check of 2013.
The 97% won’t see an income tax increase, but the social security increase is a different thing altogether.
Our increase kicked in with pay period 26, which ended Dec 29th. Our official pay date is in January, therefore the increase.