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Jean   Murray

Use 2013 Form 941 for 1st Quarter Payroll Tax Reporting

By April 1, 2013

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The IRS now has an official (non-draft) version of Form 941 for 2013 on its website. Starting with your first quarter 2013 reports, due April 30, (for January, February, March 2013) you must use the 2013 version.

Changes in the 2013 version of Form 941, relating to changes in payroll tax rates:

  • The Social Security tax rate is back up to 6.2%. Remember that the payroll tax cut, which reduced the Social Security tax to 4.2%, ended December 31, 2012. Employers must increase this tax for employees, beginning with the first payroll for 2013. If you haven't already done this, you must (1) begin withholding Social Security taxes at the 6.2% rate, beginning immediately (the deadline was March 31, 2013), and (2) if you didn't deduct the higher amount beginning January 1, you must make up any difference by withholding more from employee paychecks. Read more about the changes in payroll taxes beginning in 2013.
  • The Social Security maximum taxable amount for 2013 is $113,700. There is no maximum taxable amount for Medicare.
  • In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year.

Here are the 2013 version of Form 941 (PDF format) and the Instructions for Form 941 (2013 version, PDF format).

A Reminder: All payroll tax deposits, including those associated with Form 941, must be made electronically to the IRS, using the Electronic Federal Tax Payment System (EFTPS). No more paper coupons.

Confused about payroll taxes? Review my online course for payroll and payroll taxes.

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