Working Americans Get Less ‘Take Home Pay’ In 2013
HUNTSVILLE, Ala. (WHNT) – The working man or woman will notice a lot less going into their pockets this year. Congress is making Americans get less ‘take home pay’ than they did last year. The payroll tax holiday we enjoyed for years has ended.
Nearly 2,000 people work for the city of Huntsville. The average full-time city employee earns $50,000 a year. Each city employee and worker nationwide will take a home a little less in 2013 than they did last year.
“We know certain employees have already heard about it because they`ve asked us about it. We may notify the employees through the human resources department as a FYI,” said Randy Taylor.
Taylor is the city’s Finance Director. He and every other working American will see a 2% tax increase in the amount they pay social security.
“It’s a $1,000 impact to them per year. It comes to about $40 a paycheck,” added Taylor.
The December 31, 2012 expiration of the so-called Payroll Tax holiday is behind the increase.
“It was a temporary thing. Everyone saw a break about two years ago. The 6.2 percent tax rate had been in place for decades,” added Taylor.
The working American should know there is not much they can do to change what they give the government.
“Social security tax is an automatic percentage. It is not like declaring federal or state income tax deductions,” added Taylor.
Employers never got the 2% tax cut. Employers and employees will now pay the same 6.2 tax percentage.