unsinkable Posted January 15, 2011 Share Posted January 15, 2011 I just heard about it. It is dropping from 6.2% to 4.2%!!! That's a big chunka change! Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 15, 2011 Share Posted January 15, 2011 Yep... saw it in a paycheck already. Personally think it was a dumb decision but know that it was all about getting both sides to agree to the tax bill. Our social security coffers can not afford this one year payroll cut. Thankfully, it is only for one year. Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted January 15, 2011 Share Posted January 15, 2011 No, I had no idea. Thanks for the heads up! Agreed it makes no sense, but I guess I feel that way about Social Security in general, so it's best we keep the money in our pockets. Quote Link to comment Share on other sites More sharing options...
Melinda in VT Posted January 15, 2011 Share Posted January 15, 2011 I dislike it because it makes payroll a tad bit more difficult. The employer rate is unchanged, so now I have to calculate two separate rates for each check. :tongue_smilie: Quote Link to comment Share on other sites More sharing options...
lisamarie Posted January 16, 2011 Share Posted January 16, 2011 LOL! I was just looking at my bank statement and noticed that DH's pay went up this year when we thought it'd be going down due to rising insurance costs. We couldn't figure out why. Now we know. Quote Link to comment Share on other sites More sharing options...
Nestof3 Posted January 16, 2011 Share Posted January 16, 2011 I dislike it because it makes payroll a tad bit more difficult. The employer rate is unchanged, so now I have to calculate two separate rates for each check. :tongue_smilie: You mean as the employer, we still have to match at 6.2 %? Unreal Quote Link to comment Share on other sites More sharing options...
Melinda in VT Posted January 16, 2011 Share Posted January 16, 2011 You mean as the employer, we still have to match at 6.2 %? Unreal Yes, I went and checked the IRS web site yesterday. The employee contributioin is changing to 4.2%, but the employer contribution stays the same as it was last year, 6.2%. Quote Link to comment Share on other sites More sharing options...
SailorMom Posted January 16, 2011 Share Posted January 16, 2011 What the heck??? Why would they do that? This must be the year of "let's stick it to the small business owners". We really need someone who understands economics to grab the reins of Congress..... :banghead: Quote Link to comment Share on other sites More sharing options...
Melinda in VT Posted January 16, 2011 Share Posted January 16, 2011 What the heck??? Why would they do that? This must be the year of "let's stick it to the small business owners". We really need someone who understands economics to grab the reins of Congress..... :banghead: As a small business owner, I don't feel like anyone is sticking it to me. My SS contribution is no greater than it was last year. I am not in favor of reducing income into the government because of the general financial mess our federal government is in, but if they are determined to reduce contributions, I'm glad it was the employee's contribution that was reduced instead of ours. The extra math work is an irritation, but it's probably good for me. :tongue_smilie: Quote Link to comment Share on other sites More sharing options...
Dawn in OH Posted January 16, 2011 Share Posted January 16, 2011 I guess that explains why Friday's pay check was more than I was expecting. Our heath insurance went up, and so did the final check amount. I haven't taken the time thoroughly examine the check yet. Quote Link to comment Share on other sites More sharing options...
FaithManor Posted January 16, 2011 Share Posted January 16, 2011 Nothing the government does makes sense....NOTHING! Social Security is bankrupt in 2015 when a massive number of baby boomers retire that year. But, we'll LOWER contributions and especially for the last few working years these boomers have left to contribute to their own retirement. Yep, that just makes soooooooo much sense. Of course, it would be just like the administration to then lower the rate to the employee but not equally to the employer. Yep, that makes sense too! (insert massive sarcasm) Faith Quote Link to comment Share on other sites More sharing options...
Nestof3 Posted January 16, 2011 Share Posted January 16, 2011 Nothing the government does makes sense....NOTHING! Social Security is bankrupt in 2015 when a massive number of baby boomers retire that year. But, we'll LOWER contributions and especially for the last few working years these boomers have left to contribute to their own retirement. Yep, that just makes soooooooo much sense. Of course, it would be just like the administration to then lower the rate to the employee but not equally to the employer. Yep, that makes sense too! (insert massive sarcasm) Faith :iagree: They need to raise the age to 65 and get rid of the early option all together. Quote Link to comment Share on other sites More sharing options...
unsinkable Posted January 17, 2011 Author Share Posted January 17, 2011 As a small business owner, I don't feel like anyone is sticking it to me. My SS contribution is no greater than it was last year. I am not in favor of reducing income into the government because of the general financial mess our federal government is in, but if they are determined to reduce contributions, I'm glad it was the employee's contribution that was reduced instead of ours. The extra math work is an irritation, but it's probably good for me. :tongue_smilie: I am not trying to smarmily nitpick...I mean this in the spirit of kindly discussion. The SS money isn't technically "available" to the government so reducing the amount won't help overall financial mess anyway. RIght? Quote Link to comment Share on other sites More sharing options...
Melinda in VT Posted January 17, 2011 Share Posted January 17, 2011 I am not trying to smarmily nitpick...I mean this in the spirit of kindly discussion. The SS money isn't technically "available" to the government so reducing the amount won't help overall financial mess anyway. RIght? It's my understanding that there isn't enough in the SS fund to pay for the baby boomers' retirement, so in order to meet the SS commitments, we'll need to borrow the money from elsewhere in the federal budget. I'd be delighted to be wrong about this. Is it your understanding that there is enough in the SS fund to pay our current and upcoming commitments? Quote Link to comment Share on other sites More sharing options...
Georgiana Daniels Posted January 17, 2011 Share Posted January 17, 2011 Weird. It didn't look any bigger in our check. Guess I'll have to go over the details to see what happened. :confused: Why are they doing it now when the first wave of baby boomers is starting to collect? I doubt it will last for just one year. After all, who's going to vote to make it go back up during an election year? Quote Link to comment Share on other sites More sharing options...
unsinkable Posted January 17, 2011 Author Share Posted January 17, 2011 It's my understanding that there isn't enough in the SS fund to pay for the baby boomers' retirement, so in order to meet the SS commitments, we'll need to borrow the money from elsewhere in the federal budget. I'd be delighted to be wrong about this. Is it your understanding that there is enough in the SS fund to pay our current and upcoming commitments? I gotta run but I thought there was enough money NOW but there wouldn't be in a few years. :confused: TTYL! Quote Link to comment Share on other sites More sharing options...
angela in ohio Posted January 17, 2011 Share Posted January 17, 2011 It might take a few paychecks to show up, as some employers take longer to make the necessary changes in their payroll system. Quote Link to comment Share on other sites More sharing options...
Georgiana Daniels Posted January 17, 2011 Share Posted January 17, 2011 It might take a few paychecks to show up, as some employers take longer to make the necessary changes in their payroll system. Good to know, thanks! Quote Link to comment Share on other sites More sharing options...
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