Watching your money this morning, you may notice your first paycheck of 2013 is smaller than expected. That’s because some taxes are taking a bigger chunk out of your earnings.
Two big things took place in the New Year that will affect how much you bring home with each new paycheck this year.
The temporary reduction in Social Security payroll tax expired.
For someone who makes $50-thousand a year, that means you’ll be paying a $1,000 more a year into Social Security.
Then there’s the payroll tax increase, which impacts 77-percent of families.
If you make between $40-and-50-thousand, you’ll pay $579 more this year than last.
If you make between $50-and-70-thousand, taxes will go up $822.
So for the person earning that $50-thousand income, add the $1000 going to Social Security plus the $822 in payroll tax for a total of $1822 that wasn’t coming out of your check last year, but will this year.
Monthly, that breaks down to $151, or about $38 a week.
And it’s frustrating for people who already struggle.
Cindy Moore is a state worker. ” A lot of times, I feel overwhelmed and I am sure there are a lot of people who feel this way,” she said. “And this little issue just makes it worse.”
Source: WTHR
