Prediction: About two weeks from now, an employee at your company is going to call on human resources, or their manager, or the business owner, or you, and ask this question:
"How come I'm getting paid less, they passed the fiscal cliff thing...?"
I'm being facetious of course, but the newly passed 'fiscal cliff bill' has been highlighted as keeping a tax increase from hitting 98% of Americans.
...And that is true in regards to federal income taxes, but what was interestingly (and likely intentionally) left out of the President's late night speech on Jan. 1 was the sunset of the social security payroll tax holiday.
As a result of that sunset, the employee portion of the social security payroll tax will increase in 2013 from 4.2% to 6.2%. Click here for the new IRS Guidance.
A 2% increase for a family earning $50,000 means $1,000 less in take home this year. A family earning $100,000 takes home $2,000 less this year. There is a cap on the tax at $113,700.
Unfortunately today, very few working employees truly understand the taxes and calculations that impact their paycheck. Business owners, managers, and hr directors are likely to have to deal with a number of questions around this fact over the next number of weeks.
Now days payroll services playing important roll in business.
ReplyDeletePayroll services
Thanks for such ype of useful information.
ReplyDeletePayroll services