Paychecks to get smaller despite completed fiscal cliff dealFargo, ND (WDAY TV) - Even with the fiscal cliff deal, your paychecks will get smaller.
By: WDAY Staff Reports, WDAY Staff Reports, WDAY
Fargo, ND (WDAY TV) - Even with the fiscal cliff deal, your paychecks will get smaller.
On December 31st a two year stimulus expired. That means each pay period, two percent more will be added to your Social Security tax.
That means a $1,000 tax increase for someone earning $50,000 a year. And you might want to be careful, in case your employer missed the increase.
Cindy Slaughter, Payroll Specialist: "I would just suggest that employees make sure employers have taken care of that tax increase, that their payroll software is calculating it correctly. Of course, if you're a salaried employee and you're used to seeing the check be the same every week, this will be a change. Just double check your pay stub to make sure it's being taxed appropriately."
The stimulus began two years ago, hoping to put extra cash into the hands of spenders and back into the economy.