Payroll Tax Going Up
By: Big 2 News Staff
Updated: January 3, 2013
Your tax rates are not going up under the Fiscal Cliff agreement.
But your paychecks will be smaller, starting with your next paycheck.
That's because the two-year-old payroll tax holiday is over, with the rate going from 4.2% back up to 6.2%.
Here's how it affects your bottom line:
If you're making $30,000 a year, you'll pay about $50 more a month in taxes.
If you're earning $50,000 a year, you'll contribute about $83 more a month.
And if you make $113,700 a year, you'll pay an extra $189.50 a month in taxes.
The payroll tax funds Social Security.
The lower rate was costing the government $120 billion in tax revenue a year.
But your paychecks will be smaller, starting with your next paycheck.
That's because the two-year-old payroll tax holiday is over, with the rate going from 4.2% back up to 6.2%.
Here's how it affects your bottom line:
If you're making $30,000 a year, you'll pay about $50 more a month in taxes.
If you're earning $50,000 a year, you'll contribute about $83 more a month.
And if you make $113,700 a year, you'll pay an extra $189.50 a month in taxes.
The payroll tax funds Social Security.
The lower rate was costing the government $120 billion in tax revenue a year.
