Legal Question in Tax Law in Massachusetts
I have a question about my pay check. To make this simple I am going to round off these numbers. My pay check for two weeks the gross was $1500. My pre tax items are 403B plan that they took $100 for, my medical plan that they took $200 for and my dental plan they took $50.00 for. Which totaled $350.00 that they took out pre taxed. Which left $1150 dollars. With the new fiscal cliff and now being taxed at 6.50% on my social security it comes out to $71.30 on social security. But my pay check shows that it comes to $77.50. So I added my $100 dollars that they took from my 403b which brought it to $1250 and being taxed 6.50% that comes to $77.50. Is something wrong here? Are they taxing my 403b plan because I also took my last paycheck at which I was getting taxed 4.50%. That also came out the same way after doing the math. Please help me.
1 Answer from Attorneys
The tax rate for Social Security employee portion of tax is 6.2% on the first $113,000 (and change) for 2013
First, Congress did not continue the temporary reduction in employee contributions to Social Security from 6.2 to 4.2%.
Second, I would have to look at the regs for the 403(b) plan but as I recall its not included in your income to for income tax purposes but is not a deduction taken before social security is applied.
I do not think there is anything wrong here.
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