Paycheck A Little Smaller? Here's Why...
You may have been spared from paying more in income taxes, but there still could have been a hit to your paycheck after the Fiscal Cliff Tax Deal was reached earlier this month. Here's all you need to know...
If you take a close look at your first 2013 paystub you will probably notice that Uncle Sam took a bigger chunk of your pay for Social Security.
Taxpayers got a temporary holiday from paying the full 6.2 percent beginning in 2011, but that is over thanks to the fiscal cliff tax deal reached earlier this month.
That legislation stopped the income tax hikes for most Americans, but the Social Security payroll tax holiday was allowed to expire. AOL explains it like this:
Social security is financed by a 12.4 percent tax on wages, with employers paying half and workers paying the other half. During the temporary holiday, the employee contribution was reduced to 4.2 percent in 2011 and 2012, saving a typical family about $1,000 a year.
To see this in a different way, check out this bar graph showing how much more in taxes people will have to pay by income.
Closer to home, we asked on Facebook how much lighter your paycheck was and how you felt about it. Here’s what people had to say:
Peter Hable Social Security! I hope I get some of that some day.
Jeff Wierzelewski My biggest jump was social security, roughly a $20 per bi-weekly increase. A few dollars here and there with the rest, however that was the largest.
Emily Borkenhagen Healthcare went up & I'm not sure what the other was, but its $150/month between the two! How's that hope & change working out for ya? Lol.
Cory Berger I'm out $100 a month alone, doesn't include my fiance.
Nicole Ibealright Damico I guess we just blame Standing President instead of the circumstances.....but i dont miss those days when i worked 40hrs/wk and could barely pay rent