'Rate change'


Q. I had more money taken out of my paycheck No. 26 for Social Security old age, survivor and disability insurance and a notation saying “rate change.” I looked at the Social Security page and there has been no rate change to the amount of money taken out for Social Security (OASDI) in 2013. It is the same amount of money taken out as 2012. Even though we get receive our check in January 2013, the earnings are from December 2012. I can’t find any information on any rate change on the NFC Web page.

A. Where have you been? As part of the “fiscal cliff” deal passed by Congress and approved by the President, the two-year-old payroll tax holiday came to an end. Under the tax holiday, the standard 6.2 percent payroll tax was cut to 4.2 percent for all American workers. Now it’s back up to 6.2 percent.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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