PKF Texas: The Entrepreneur’s Playbook® – Tina Winograd

by | Jan 28, 2013 | PKF Texas - The Entrepreneur's Playbook®

Greg: This is PKF Texas, the Entrepreneur’s Playbook. I’m Greg Price, Director of Consulting Solutions and I’m here again with Tina Winograd, a payroll specialist in our accounting department at PKF Texas. Tina, welcome back to the Playbook.

Tina: Thank you Greg.

Greg: So Tina, one of the things that happens every year are changes pertaining to cost of living increases. Are there gonna be some changes for this going forward in 2013?

Tina: Yes. The Social Security taxable wage base will be raised to 113,700 and for personal IRAs the amount will be raised 500 to a maximum of 5,500 with a $1,000.00 catch up and for employers, the 401(k) and the 401(3)(b) will increase to a maximum of 17,500, but the catch up for 2013 will remain the same as 2012, which is 5,500.

Greg: So in addition to having those cost of living changes, are there limitations for insurance or changes in this area as well?

Tina: For most benefit changes, it depends upon the policy of the insurance provider and the employer. To find out what your changing benefits and your out-of-pocket expenses will be for next year, it’s best to ask your HR department. But there is one federal legislation benefit that will be changing next year. The medical FSA, the flexible medical savings account will be at a limit of $2,500.00. Now the employer can still add flex credits to that to increase the banked amount, it’s important to know that this only affects the medical part of the flexible spending account. The other benefits as in dependent care will not be affected.

Greg: Well that’s a good change for those companies that wanna offer that as a benefit to them.

Tina: Yes.

Greg: Well Tina, I learned an awful lot about all of these payroll changes. Thank you for sharing that with us today.

Tina: You’re welcome.

Greg: This has been another thought leader production brought to you by PKF Texas, the Entrepreneur’s Playbook. Tune in next week for another chapter and if you’d like to get more information about these changes as it pertains to cost of living or insurance, go to PKF Texas.com/tax news.

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