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WannaBeAMom11
LIF Adult
Member since 1/11 7391 total posts
Name:
Name
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Payroll Tax increase...how will it impact you?
Between the train fare hike and this even though I got a raise ill be taking home less money. Fun.
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Posted 1/3/13 6:26 AM  |
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Rosie0613
LIF Adolescent
Member since 8/10 875 total posts
Name:
Rosie
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Re: Payroll Tax increase...how will it impact you?
As it is, there are too many things being increased at the same time; health insurance, mta fares, real estate taxes etc. The amount of my take home pay that is left after paying all bills is shrinking more and more 
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| Posted 1/3/13 8:29 AM |
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stinger
LIF Adult
Member since 11/11 4971 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
My employer sent a letter that says the 2% is on earnings up to $113K. Anyone know why?? If I understand this correctly, those that make more than this salary are getting a better deal? So, the more you make (beyond $113K) the better you are making out by this 2% increase?
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| Posted 1/3/13 8:37 AM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
Posted by stinger
My employer sent a letter that says the 2% is on earnings up to $113K. Anyone know why?? If I understand this correctly, those that make more than this salary are getting a better deal? So, the more you make (beyond $113K) the better you are making out by this 2% increase?
im pretty sure the break was only for people making a ceartin amount of money if you made more than i think maybe say 150K ( not sure if thats the real number) then you didnt qualify for the 2% tax break to begin with. I could be wrong but thats how i thought it worked cause i think i remember getting a letter from my company on opting out of it if you didnt want to do it.
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| Posted 1/3/13 8:43 AM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: Payroll Tax increase...how will it impact you?
I'm losing $60 per check (bi-weekly). I'm NOT happy! I'm a single mom and this is really going to affect me
Message edited 1/3/2013 9:17:56 AM.
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| Posted 1/3/13 9:11 AM |
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acm1899
LIF Adult
Member since 1/11 1085 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
Posted by stinger
My employer sent a letter that says the 2% is on earnings up to $113K. Anyone know why?? If I understand this correctly, those that make more than this salary are getting a better deal? So, the more you make (beyond $113K) the better you are making out by this 2% increase?
$113,700 is the 2013 FICA limit on SS tax. The govt adjusts this number every year. Once your annual salary goes over the limit you stop paying in SS tax. The reasoning behind the limit is that since there is a cap as to how much you can eventually collect from SS then there should also be a cap on how much you pay in during your working life.
The 2.0% (of a total 6.2%) tax was essentially on "vacation." I don't think there was ever any talk of it going away altogether. By the way, employers never got the 2% break. Just the employee.
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| Posted 1/3/13 9:16 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
Posted by acm1899
Posted by stinger
My employer sent a letter that says the 2% is on earnings up to $113K. Anyone know why?? If I understand this correctly, those that make more than this salary are getting a better deal? So, the more you make (beyond $113K) the better you are making out by this 2% increase?
$113,700 is the 2013 FICA limit on SS tax. The govt adjusts this number every year. Once your annual salary goes over the limit you stop paying in SS tax. The reasoning behind the limit is that since there is a cap as to how much you can eventually collect from SS then there should also be a cap on how much you pay in during your working life.
The 2.0% (of a total 6.2%) tax was essentially on "vacation." I don't think there was ever any talk of it going away altogether. By the way, employers never got the 2% break. Just the employee.
Yes, this. My DH makes over $113K and what always happened was by October we actually had paid the maximum amount into SS tax and basically the last 2.5 months of the year NO SS security tax came out of his paycheck. (which was SO nice, it was like an end of the year temporary "raise")
I'm guessing that won't be the case anymore now? His employer sent a letter explaining everything with the tax increase, we'll have to go over today to get a better idea of what we're in for. 
Message edited 1/3/2013 9:22:36 AM.
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| Posted 1/3/13 9:22 AM |
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acm1899
LIF Adult
Member since 1/11 1085 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
Posted by Hofstra26
I'm guessing that won't be the case anymore now? His employer sent a letter explaining everything with the tax increase, we'll have to go over today to get a better idea of what we're in for.
The only thing that's changing is that for the last 2 years we've gotten a 2% break. So rather than paying in 6.2%, employees have been paying only 4.2%.
To figure out how much less you will be receiving in net pay this year, multiply your gross wages (up to 113,700) by 2%.
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| Posted 1/3/13 9:37 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
Posted by acm1899
Posted by Hofstra26
I'm guessing that won't be the case anymore now? His employer sent a letter explaining everything with the tax increase, we'll have to go over today to get a better idea of what we're in for.
The only thing that's changing is that for the last 2 years we've gotten a 2% break. So rather than paying in 6.2%, employees have been paying only 4.2%.
To figure out how much less you will be receiving in net pay this year, multiply your gross wages (up to 113,700) by 2%.
I see. Thanks!!! 
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| Posted 1/3/13 10:15 AM |
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hopingforbaby
We made a wish & you came true
Member since 2/10 2695 total posts
Name:
Me
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Re: Payroll Tax increase...how will it impact you?
Between taking a 20% pay cut when DS was born this year, health care deductions increasing by 22% (on top of adding DS to the plan), fare hikes and now this, I am starting to think my next check will be for a negative amount! It is what it is but since I haven't received a raise in three years all of these increased deductions are starting to hurt.
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| Posted 1/3/13 11:20 AM |
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Payroll Tax increase...how will it impact you?
I see many of you haven't gotten a raise in years - and that is such a huge problem, IMO. It's bad enough when the economy is secure, but way worse when things are tough.
And it's not like you can just pick up and go get another job - they are so hard to come by these days.
I don't know what they expect us (universal us) to do.
I'm so over all the greed on top.
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| Posted 1/3/13 11:30 AM |
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2BadSoSad
LIF Adult
Member since 8/12 6791 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
Not SO bad. I am out $20 bucks a week, roughly the same for DH. $160 a month sucks to lose, but it is not going to make or break us, thank god!
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| Posted 1/3/13 3:30 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
We live below our means, so we won't have to scramble. I hate that so many people will.
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| Posted 1/3/13 9:09 PM |
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kimmaymb20
a year of surprise
Member since 7/09 1119 total posts
Name:
Kimberly
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Payroll Tax increase...how will it impact you?
Its going to stink since I haven't had a raise in almost 5 years and everything just keeps going up in price. It, might not hurt me and my DH right away but come June when they renew our health insurance then that's, when we'll suffer because the premium is, being raised significantly due to Obamacare being implemented in 2014.
Message edited 1/3/2013 10:40:56 PM.
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| Posted 1/3/13 10:40 PM |
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Re: Payroll Tax increase...how will it impact you?
Dumb question, but when is this change supposed to take place? Because I noticed the social security tax already went up for my December paycheck. Was that even supposed to happen?
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| Posted 1/3/13 11:01 PM |
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Strawberry2468
It's summatime
Member since 3/09 4739 total posts
Name:
Christine
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Re: Payroll Tax increase...how will it impact you?
Posted by chanmar
No raise here in 2 years, and taxes just went up, and you can bet, homeowners ins. will be going up, and now the tax increase. The middle class will be pushed out of long island very shortly.
Same here. Sad but true
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| Posted 1/4/13 8:28 AM |
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StaceyWill
It's a girl!!!
Member since 6/10 21536 total posts
Name:
Stacey
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Re: Payroll Tax increase...how will it impact you?
Posted by 2BadSoSad
Not SO bad. I am out $20 bucks a week, roughly the same for DH. $160 a month sucks to lose, but it is not going to make or break us, thank god!
Ditto
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| Posted 1/4/13 9:24 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
DH just got his check today. Its $100 less than he normally makes bi weekly. I get my check next week so i'll see. This stinks, especially with costs rising on everything.
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| Posted 1/4/13 1:50 PM |
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AngnShaun
Sisters
Member since 1/10 21015 total posts
Name:
Ang
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Payroll Tax increase...how will it impact you?
My check is exactly the same as it was 2 weeks ago.
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| Posted 1/4/13 1:54 PM |
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Jugglemom
LIF Adolescent
Member since 3/12 809 total posts
Name:
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Re: Payroll Tax increase...how will it impact you?
Can this be right? Between DH and I our pay checks for this biweekly period were $800 less which would mean we are making $1600 less a month
That can't be just he payroll tax holiday? Is there something else that went though?
I am seriously freaking out!
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| Posted 1/4/13 3:19 PM |
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ElizaRags35
My 2 Girls
Member since 2/09 20494 total posts
Name:
Me
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Re: Payroll Tax increase...how will it impact you?
Posted by Jugglemom
Can this be right? Between DH and I our pay checks for this biweekly period were $800 less which would mean we are making $1600 less a month
That can't be just he payroll tax holiday? Is there something else that went though?
I am seriously freaking out!
That doesn't sound like the payroll tax increase because it only went up 2% and only the first $113K applies. Maybe compare your stubs with your last stubs to see where the difference is?
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| Posted 1/4/13 3:26 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Payroll Tax increase...how will it impact you?
I got paid today - only $15 less weekly, better than I expected...
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| Posted 1/4/13 4:01 PM |
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drpepper318
MIR MIR MIR!
Member since 6/07 8274 total posts
Name:
me
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Re: Payroll Tax increase...how will it impact you?
DH's and my checks were each $50 less than usual (we earn about the same)... which takes away over $200 per month of take-home pay (we get paid bi-weekly)... what a bummer
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| Posted 1/4/13 6:49 PM |
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AScottWolf
I <3 our squish!
Member since 11/10 2237 total posts
Name:
Adriana
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Re: Payroll Tax increase...how will it impact you?
I just got my check since this increase took place. I received $40 less so it will be $80 less a month. DH will probably $60 less, $120 less a month so it's about $200 a month which is a pretty decent amount.
Luckily, even though our 3.5% cost of living raise only happened 2/6 of the past years, our agency is giving everyone a 2% raise retroactive from our hire anniversary date to try and offset this loss.
It still sucks because I have another job where it will also effect me.
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| Posted 1/10/13 10:05 AM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Payroll Tax increase...how will it impact you?
DH just gt his check today and was totally expecting the reduction but instead it went up $5... When comparing old paystubs, he said everything was the same... Very weird... This happen to anyone else?
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| Posted 1/10/13 10:50 AM |
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