Payroll tax increase: What this means for you
By: Chelsea Rarrick
Updated: January 3, 2013
Americans are now going to be seeing less in their paychecks.
The payroll tax cut expired earlier in the week, which means the payroll tax are is now 6.2%
It was lowered to 4.2% back in 2011 as a way to stimulate the economy.
With the hike, one expert says you'll now notice a smaller paycheck.
"If you have a couple, a married couple that both make $25,000 a year, their decrease for the year will be $1,000. If you look at that on a monthly basis, it's almost $100 a month. So that's really going to affect a lot of our clients and people in the Mohawk Valley, said Bill Read at H&R Block.
Read says you'll notice the adjustment right on your pay stub on the FICA line.
The payroll tax cut expired earlier in the week, which means the payroll tax are is now 6.2%
It was lowered to 4.2% back in 2011 as a way to stimulate the economy.
With the hike, one expert says you'll now notice a smaller paycheck.
"If you have a couple, a married couple that both make $25,000 a year, their decrease for the year will be $1,000. If you look at that on a monthly basis, it's almost $100 a month. So that's really going to affect a lot of our clients and people in the Mohawk Valley, said Bill Read at H&R Block.
Read says you'll notice the adjustment right on your pay stub on the FICA line.
