Temporary Two Percent Reduction in Social Security Payroll Tax Set to Expire
CSU San Marcos employees who pay into Social Security (includes all employees who qualify for membership in the California Public Employees’ Retirement System, CalPERS), should be aware, the two percent reduction in Social Security payroll tax is set to expire.
Without further changes in the law, the tax rate will return to 6.2 percent starting with the December payroll, increasing the social security deduction and decreasing net (take home) pay. December payroll is issued at the end of December and is dated Jan. 1, 2013, making it the first paycheck for the 2013 tax year.
If Congress passes an extension of the tax reduction after December checks have been processed, adjustments will be made accordingly. Additional information will be provided as it becomes available.
Please contact Payroll Services at ext. 4421 if you have any questions.