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Paychecks To Get Smaller: What To Expect On Yours

paycheck

Washington, D.C. (WREG) – Your paycheck is about to get smaller with the expiration of the payroll tax reduction.

For two years, the payroll tax rate has been 4.2 percent, but as of Tuesday, that reverted back to 6.2 percent on the first $113,700 in wages.

Those earning the national average salary of $41,000 will receive $32 less on every biweekly paycheck.

The higher the salary (up to $113,700), the bigger the bite, but business owners say their lower-wage employees will feel it most.  Here’s what you can expect, according to figures from the U.S. Treasury:

Income:           Was 4.2%        Now 6.2%      Difference         Bi-Wkly

 $20,000           $840                $1240              $400                $15

$30,000           $1,260              $1,860              $600                $23

$40,000           $1,680              $2,480              $800                $31

$50,000           $2,100              $3,100              $1,000              $38

$60,000           $2,520              $3,720              $1,200              $46

$70,000           $2,940              $4,340              $1,400              $54

$80,000           $3,360              $4,960              $1,600              $62

$90,000           $3,780              $5,580              $1,800              $69

$100,000         $4,200              $6,200              $2,000              $77

$110,000         $4,620              $6,820              $2,200              $85

$113,700         $4,775              $7,049              $2,274              $87

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