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

© Belinda Richardson and Frugal Workshop, 2011-2013.

“Use it up, wear it out, make it do, do without”