Monday, January 21, 2013

Social Security Tax

Have you been listening to the chatter lately about the "Payroll Tax" or better known as the Social Security Tax? 

Social Security is funded by a 12.4% tax on wages up to $110,100. 

Half is paid by employers and the other half is paid by workers. 

For 2011 and 2012, Congress and Obama cut the share paid by workers from 6.2% to 4.2%.

Starting on January 1, the tax credit expired and workers are now back to paying the 6.2%. 

Did you notice the difference on your paycheck?  

I knew about the tax credit expiring, but did not notice a difference on my check. We received a $10.00 per day raise at the start of the school year, so I've been happy with my paycheck all this time. Perhaps those that had a bigger difference taken out of their paychecks feel differently, which is understandable. I've seen a lot of  articles written with sympathy towards workers

Do you think workers have gotten used to spending the extra 2% and are now  feeling the pain of having it taken out of their checks again? 

What do you think?  

© Belinda Richardson and Frugal Workshop, 2011-2013.
“Use it up, wear it out, make it do, do without”

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