You would think the world is ending

[bjl584]

The Mayans have nothing on the Social Security Tax reverting back to 6.2% You should hear all of my coworkers whining about it.

It's time like this that I am glad that I don't live paycheck to paycheck.

[disneysteve]

The Mayans have nothing on the Social Security Tax reverting back to 6.2% You should hear all of my coworkers whining about it.

It's time like this that I am glad that I don't live paycheck to paycheck.

I'll plead ignorance. What was the tax before? I suppose I should pay more attention to these things but I really don't. I tend to ignore things over which I have no control.

[herdjohnson]

Same here.

DisneySteve, we had a Social Security payroll tax break for a few years of 2%. It expired at the end of the year.

[bjl584]

I'll plead ignorance. What was the tax before? I suppose I should pay more attention to these things but I really don't. I tend to ignore things over which I have no control.

It went from 4.2% back to 6.2%. So, roughly you can expect a 2% pay cut in 2013 as compared to 2012.

[disneysteve]

DisneySteve, we had a Social Security payroll tax break for a few years of 2%.

So it went from 2% to 6.2%, or was it from 4.2% to 6.2%?

[jpg7n16]

2012: 4.2%
2013: 6.2%


I agree with you guys, this is something I don't ever focus on. If a 2% change destroys your budget, you have a flimsy budget.

[herdjohnson]

Sure, it sucked knocking down my budgeted income by 50 bucks a pay period, but it's not the end of the world. I'll suck it up and tighten the belt on my personal spending a little and all will be well.

[bjl584]

So it went from 2% to 6.2%, or was it from 4.2% to 6.2%?

It went from 4.2% to 6.2%.

[feh]

To be totally clear:

2010: total of 12.4%, half from employer and half from employee
2011-2012: total of 10.4%, 6.2 from employer and 4.2 from employee (economic stimulus)
2013: back to 12.4%, half & half

[twest]

You know one of my friends on facebook was ranting this morning about his 2%. It is really kinda sad. I told my husband maybe they shouldn't have allowed the decrease because now people feel they are entitled to it. I agree with jpg7n16 if it affects a person's budget that much they have a flimsy budget. I know it may affect some of the elderly people but most of my experience have been those people that are able to work but just barely work and then raise all kiinds of fuss about it.

[phantom]

My pay was cut right around the time the tax holiday started, and the reduced tax did little to make up for that. Now that I've switched jobs and gotten my salary back up, the end of the tax holiday won't have much impact either. Still, it's always a little sad to suddenly be taking home less money.

[disneysteve]

I don't know. I think a 2% pay cut is significant for a lot of people. It won't wreck our budget or make us unable to pay our bills but that's the cost of a week's vacation. We'll be fine but that money has to come from somewhere or spending needs to be cut to make up for it. For someone on a tighter budget, the effect could be pretty significant, like having to cancel the family vacation or having to delay replacing an aging car.

[MonkeyMama]

I am bummed because it is 2% less to our savings. To me, that is substantial. It doesn't mean I will be broke over it, but I don't think 2% per year is any small beans to most. I don't see how fiscally careful you are or not matters. We know where every penny goes, so we certainly notice.

But, that said, I was well aware all along and this is no surprise. We saved the money all along, and I under-estimated how used to it I Would get used to it after 2 years, even with full knowledge that it would end. Hence, I am bummed about the essentially 2% pay cut.

I am sure the masses had no clue and are totally freaking out - probably didn't save it- probably don't know how what to do with their smaller paychecks. It sucks to be them right now.

[herdjohnson]

I'm not saying it's a small amount of money. It's over 1,300 bucks I won't see this year. But it was a 2 year gift from the government. It's not like they're raising taxes, just ending a break that was always meant to be a temporary measure. It wasn't a big secret that it was going away.

[GREENBACK]

I am sure the masses had no clue and are totally freaking out - probably didn't save it- probably don't know how what to do with their smaller paychecks. It sucks to be them right now.

Might suck to be them but what affects "them" will eventually affect the rest of us in terms of slowing down the economy.