Fiscal Cliff

[huselton1]

Am I missing something here. Zpay is now calculating an increase in Federal Income tax, but I thought Congress voted to keep the old tax tables in place.

[Paul Mayer]

We just received an email from our tax service that gave us the link to the IRS PDF file this morning. The IRS posted what was given to them, and when the President signs the law, another one should be available.

2013 Percentage Method Withholding Tables to be Revised

On Dec. 31, 2012, the IRS issued 2013 percentage method withholding tables. However, the tables were released before Congress passed the fiscal cliff legislation that modified the income tax rates. The IRS stated in IR-2012-105 that it would revise the tables if legislation was enacted that changed the income tax rates. The President is expected to sign the legislation soon.

The 112th Congress Has made this a nightmare with their political games and we can only publish what the IRS releases and when they give us a new one, it will be released as soon as we get it.

[huselton1]

ANy reason my FIT is showing just slightly different (amounts) than the old 2012 system? Less than a dollar higher but still differnet.
What's up with that?

[Paul Mayer]

Yes, the new 2013 Federal tax tables released on January 3, 2013 are a bit different than 2012 tables were until you get to the high wage earners and then it's a lot different.