im curious now too since about 50% of my pay is commision, i'll ask my mom, shes a CPA and a controller of a company.
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im curious now too since about 50% of my pay is commision, i'll ask my mom, shes a CPA and a controller of a company.
Can't say on income tax rates, but payroll taxes are affected.
Here's the e-mail we got from HR. The vast majority of employees are base+revenuce based.
Good morning -
On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 (H.R. 8), preventing the U.S. from going over the impending “fiscal cliff.” The Act, which President Obama signed into law, extended certain tax relief measures for most Americans.
The Act does not, however, avoid the expiration of the payroll tax cuts that were in effect for 2011 and 2012. These tax cuts temporarily reduced the amount of Social Security ("FICA") taxes owed by employees by two percentage points from 6.2% to 4.2%. This reduction expired on December 31, 2012. Therefore, effective January 1, 2013, employees will have the full 6.2% for FICA withheld from their paychecks.
The New Year brings two additional payroll tax increases:
- First, maximum taxable earnings for Social Security contributions increase from $110,100 to $113,700 for 2013, which means that higher earners will pay additional Social Security contributions.
- Second, the new Additional Medicare Tax (imposed by the Patient Protection and Affordable Care Act) requires individuals to pay a supplemental 0.9% tax (in addition to the 1.45% contribution that applies to all wages) on wages in excess of $200,000.
Should you have any questions regarding these tax changes and how they may affect your paycheck, please do not hesitate to call REDACTED
Best regards,
Your Human Resources Team