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The fiscal cliff has passed and now what?

How the new American Taxpayer Relief Act of 2012 (ATRA) affects you and your business.

February 21, 2013
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Making it personal

And on a personal note, the 2% increase in Social Security means individuals making the maximum wage limit ($113,700) will have an additional $2,274 deducted from their paychecks in 2013. The maximum Social Security tax that an employee could pay is $7,049.40 for 2013. Medicare tax of 1.45% has no salary cap.

Personal Income tax rates remain the same for most individuals in 2013, 10%, 15%, 25%, 33% and 35%; however, it rose for single earners with annual incomes above $400,000 and married couples with incomes above $450,000. Income above those levels is taxed at 39.6%, up from 35%.