A compromise on the fiscal cliff may have been reached, but your payroll taxes won’t be going down, or staying the same…they’re going up.
It looks like everyone’s paycheck will be looking a little smaller in 2013. That’s because a tax break has expired. It means payroll taxes will be going up by two-percent.
We spoke with a barista at Buttercloud Bakery in Medford. She said it’s hard enough to keep up in the down economy as it is. Now as the government takes more money out of her paycheck…
“Definitely a lot more budgeting making sure before I buy. It’s obviously a bummer, I mean nobody likes to see their paycheck smaller,” said Tiffany Cathcart, barista at Buttercloud Bakery.
The payroll tax break over the last two years was meant to be temporary. The tax helps fund social security.
For a general idea how much might be taken out of your paycheck, someone making the national average salary of $41,000 will have a little more than $30 less on their bi-weekly paycheck.
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