October 16, 2012
To: Principal Investigators & Project Administrators
FROM: Nelson Sakamoto
Director of Human Resources
SUBJECT: January 1, 2013 – Revised RCUH Fringe Benefits Schedule
Today the Social Security Administration (SSA) announced that the 2013 social security wage base will be $113,700, an increase of $3,600 from the 2012 wage base of $110,100. The RCUH has updated its Fringe Benefits Schedule to reflect this change. There are some key changes that you should be aware of:
1. Effective January 1, 2013, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will be withheld from only the employee’s wages. Employers (e.g., Projects) will not be charged for this additional withholding.
2. The Middle Class Tax Relief and Job Creation Act of 2012 that reduced the FICA tax rate from 6.2% to 4.2% is scheduled to expire on December 31, 2012. Unless Congress extends or amends this law; the FICA tax rate will revert to the 6.2% effective January 1, 2013.