American Taxpayer Relief Act of 2012 and Social Security Tax on Employees and Self-Employeds

The American Taxpayer Relief Act of 2012, signed January 1, 2013, did not extend the 4.2% employee social security tax. Effective 1/1/13, the employee social security tax increases from 4.2% to 6.2% for wages up to $113,700. This applies to self-employeds as well.