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Covered California Q&A

Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.

Payroll Tax Increase

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Question: Is the 2% payroll tax increase for 2013 part of Obamacare?

Answer: No. It has nothing to do with Obamacare. Actually, FICA payroll taxes were cut 2% in 2011 and 2012. That cut will expire, effective Jan. 1, 2013. Although the increase is on employee contributions, the increase also affects an employer’s withholding obligations.

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