Are Taxes to be Deducted from Paycheck for Pay Period or From Date Check is Cut?

by Vicky
(Hoboken, NJ)

I work for a government agency in NJ. Today is January 3, 2013 and I just got my paycheck that covers Dec 9-Dec. 22, 2012 which shows they have deducted the 2% Social Security tax increase which became effective on January 1, 2013. When I asked my administrator she said they base it on the check date, not the pay period. Is this accurate and legal?

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Year In Which Paid Determines Tax
by: Best Business Payroll

Yes, Vicky, this is accurate and legal. Even though the work was performed in 2012, it is the date paid that determines the amount of tax taken out.

Because your check date is 2013, it is accurate (even though we can understand why you don't like it) to take out the 2% until or unless the Fiscal Cliff issue is resolved.

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