justme824 Posted January 4, 2013 Share Posted January 4, 2013 Just logged in to work on this week's budget and discovered the lovely tax changes for 2013. 2% less each paycheck is a LOT of money for us. Ugh! I keep reminding myself to be very thankful my husband has an awesome, stable job. Looks like I need to rework my budget this weekend and decide what to cutback even further. Quote Link to comment Share on other sites More sharing options...
Heatherwith4 Posted January 4, 2013 Share Posted January 4, 2013 DH gets paid Monday, and I'm sort of dreading seeing how much less his paycheck is. :( Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted January 4, 2013 Share Posted January 4, 2013 Just logged in to work on this week's budget and discovered the lovely tax changes for 2013. 2% less each paycheck is a LOT of money for us. Ugh! I keep reminding myself to be very thankful my husband has an awesome, stable job. Looks like I need to rework my budget this weekend and decide what to cutback even further. Oh yeah. Been hearing this all over. That 2% increase is going to hurt, but it is better than no money at all. It has only just begun. Quote Link to comment Share on other sites More sharing options...
thessa516 Posted January 4, 2013 Share Posted January 4, 2013 Yep. We had to rework our budget. :glare: Quote Link to comment Share on other sites More sharing options...
KrissiK Posted January 4, 2013 Share Posted January 4, 2013 yes. I logged on to our bank account (we have direct deposit) and gasped. then I e-mailed dh and asked him what was up and he told me it was the ss tax thing. And then I went to our budget in Excel and started cutting. You know what ticks me off? When we get a pay cut, we have to cut. Our govt. doesn't seem to think that concept applies to them. Quote Link to comment Share on other sites More sharing options...
TammyinTN Posted January 4, 2013 Share Posted January 4, 2013 We get paid on the 15th..I'm actually dreading the LES coming out. KrissiK --I so agree with you. We have to live within our means..so should our government. Quote Link to comment Share on other sites More sharing options...
pdalley Posted January 4, 2013 Share Posted January 4, 2013 We get paid next week. This, combined with the forced unpaid holiday they took during the last pay period, is going to hurt badly. We've taken three pay cuts in less than six months. I'm cutting and cutting and cutting. Not much left to cut here. I'm going to have to look for work some place soon. Not that there is much out there. :glare: Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 The temporary payroll tax decrease was indeed temporary. It was never supposed to go past 2012. It funds social security. There is no way that it could have become a permanent decrease....I thought it was common knowledge that the 2% was going to start coming out of paychecks again, starting January 1, 2013. I've been surprised that so many people didn't know it. I planned our budget changes with that in mind. Quote Link to comment Share on other sites More sharing options...
lavender's green Posted January 4, 2013 Share Posted January 4, 2013 I'm really glad we moved to a lower COL area last year. This squeezes, but if we hadn't moved, it would really hurt. I totally agree with the above comments about the government staying within its means, just like we "little people" need to. Quote Link to comment Share on other sites More sharing options...
Momof3littles Posted January 4, 2013 Share Posted January 4, 2013 The temporary payroll tax decrease was indeed temporary. It was never supposed to go past 2012. It funds social security. There is no way that it could have become a permanent decrease....I thought it was common knowledge that the 2% was going to start coming out of paychecks again, starting January 1, 2013. I've been surprised that so many people didn't know it. I planned our budget changes with that in mind. Agree, it was temporary. It isn't fun, but I don't want to see SS end up even further behind the ball than it already is either. Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 There is a difference between knowing it and "wanting" to know it. LOL True.... but I thought it was dumb when they did the temporary cut to begin with but that's another story...... Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 I kinda did too, although it's hard to argue against more money. : ) I know.......... Quote Link to comment Share on other sites More sharing options...
Tammyla Posted January 4, 2013 Share Posted January 4, 2013 I dread seeing it in black and white too. Temporary for our government does not always = temporary; I think a lot of people hoped they would do a better job managing the mess. Less money for us = less money and it's harder to stretch the budget as prices seem to always be going up, up, up. Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 one of the reasons I thought it was dumb was because I knew people would try to call it a tax hike when the temporary period was over.... It's not! What we had was a temporary reduction. Quote Link to comment Share on other sites More sharing options...
texasmama Posted January 4, 2013 Share Posted January 4, 2013 Can someone help me with the implications for the self-employed? Will this translate into a "pay more on April 15th" scenario, for lack of a better phrasing? Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 Temporary for our government does not always = temporary; I think a lot of people hoped they would do a better job managing the mess. This is social security money. It has nothing to do with the regular budget or the funding of the regular budget. I do see what you mean about how temporary doesn't always mean temporary but I guess I just figured this one really was as it was related to social security. Quote Link to comment Share on other sites More sharing options...
Lisbeth Posted January 4, 2013 Share Posted January 4, 2013 It's not like we'll ever see that SS money, either. I wish they would keep their hands out of our pay and let US invest the way WE want to with our own money. We would do a much better job. I hate the whole SS thing. What a ripoff. Quote Link to comment Share on other sites More sharing options...
KRG Posted January 4, 2013 Share Posted January 4, 2013 Our next payday is the 15th and I'm dreading it...I don't know where we will cut from... Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 Can someone help me with the implications for the self-employed? Will this translate into a "pay more on April 15th" scenario, for lack of a better phrasing? Did the self employed get the 2% reduction in social security taxes for 2011 and 2012? If so, then I'd think it would affect the self employed. But it would not impact your 2012 returns, as the temporary reduction didn't end until the end of 2012. Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 It's not like we'll ever see that SS money, either. I wish they would keep their hands out of our pay and let US invest the way WE want to with our own money. We would do a much better job. I hate the whole SS thing. What a ripoff. I disagree. I think we'll see it but there will be a higher age in which to receive it. If we stopped funding it, what happens to those who are too old to save more than they already do, and paid in to the system? Quote Link to comment Share on other sites More sharing options...
Lisbeth Posted January 4, 2013 Share Posted January 4, 2013 I disagree. I think we'll see it but there will be a higher age in which to receive it. If we stopped funding it, what happens to those who are too old to save more than they already do, and paid in to the system? There has to be a way to phase it out while still saving the older folks who are caught right now. It really isn't my job to save money for other people's retirement. With the government's track record of horrible abuse and waste of money, they need to let me keep mine. We don't earn it so they can spend like "drunken sailors." Though, that is a terrible insult to drunken sailors. We will have to agree to disagree about whether we'll ever see any of that money again. I think it's a pipe dream. Quote Link to comment Share on other sites More sharing options...
pdalley Posted January 4, 2013 Share Posted January 4, 2013 The temporary payroll tax decrease was indeed temporary. It was never supposed to go past 2012. It funds social security. There is no way that it could have become a permanent decrease....I thought it was common knowledge that the 2% was going to start coming out of paychecks again, starting January 1, 2013. I've been surprised that so many people didn't know it. I planned our budget changes with that in mind. I planned for it. I did not plan for the forced unpaid holiday they told Dh about two days before it happened or any of the last two salary cuts that came with barely a week's notice. Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 I planned for it. I did not plan for the forced unpaid holiday they told Dh about two days before it happened or any of the last two salary cuts that came with barely a week's notice. Paycuts are rough, I know.... Been there, done that. Thankfully, it's been a while. It's even harder when it comes all at once too. I'm sorry you are being hit from so many places at once. Quote Link to comment Share on other sites More sharing options...
Truscifi Posted January 4, 2013 Share Posted January 4, 2013 Yep, I had planned for it and I agree it should expire, but it still pinches. Quote Link to comment Share on other sites More sharing options...
Arcadia Posted January 4, 2013 Share Posted January 4, 2013 We budgeted for the payroll tax increase since all the local news was harping on it in the past month. Christmas shopping mood in general was quiet in my area, people sticking to their shopping list. Luckily tax was not raised for those less than $400k single annual income. If it was for $250k combined income, some friends in high COL areas in the country would be affected. Quote Link to comment Share on other sites More sharing options...
kwickimom Posted January 4, 2013 Share Posted January 4, 2013 That coupled with the 32% increase :scared: in our health insurance premiums (we were given a 1 week notice of) is going to kill us this year. DH over the last 3 years has already lost all bonuses and they have even taken away their Christmas party. Of course no overtime available. He either needs to get a second job or I need to go get one. Quote Link to comment Share on other sites More sharing options...
Onceuponatime Posted January 4, 2013 Share Posted January 4, 2013 Yes, we were paid yesterday, 2% increase in taxes. Quote Link to comment Share on other sites More sharing options...
Crimson Wife Posted January 4, 2013 Share Posted January 4, 2013 The beginning of the year is always leanest in terms of our budget because SS kicks in again and also the 401(k) deductions, plus our health insurance deductibles & out-of-pocket maximums start over. We do try to get big expenses out of the way in the fall like our property taxes and auto & homeowner's insurance policies. But that only goes so far in helping with the lower take-home pay. :nopity: Quote Link to comment Share on other sites More sharing options...
twoxcell Posted January 4, 2013 Share Posted January 4, 2013 Yes my dh was paid today and our taxes increased by 2% as well. So much for that cost of living increase last fall. :sad: I wasn't sure if our taxes would increase since we don't make much money but they did. Quote Link to comment Share on other sites More sharing options...
QueenCat Posted January 4, 2013 Share Posted January 4, 2013 Yes my dh was paid today and our taxes increased by 2% as well. So much for that cost of living increase last fall. :sad: I wasn't sure if our taxes would increase since we don't make much money but they did. Anyone who works will see their payroll tax back at it's full amount. Level of income is not relevant as it is not your income tax but your social security tax. Quote Link to comment Share on other sites More sharing options...
UrbanSue Posted January 4, 2013 Share Posted January 4, 2013 Yowch, I forgot about that. And our employer held off on insurance premium increases last year on the ones who picked the cheaper option . . . but I think that kicks in this year for all of us. We get paid at the end of the month. I'm extra glad that we've made some good budgeting progress this week. I am grateful for employment, though. It's true that this is our fourth or fifth pay cut in four years . . . but at least we have income. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted January 4, 2013 Share Posted January 4, 2013 Well since dh has only been back to work for a few weeks his pay checks are whacked anyway trying to catch up with insurance premiums...so maybe I won't 'feel' it as much as I otherwise would have. Dh got a good job just over a year ago...but we had to rent apartment in the new city until we could get our old house sold and a new one bought...just as we got that accomplished he got sick! So we have yet to have a full month's pay in an entire year that did not have double rent and double (a few months triple!) utilities coming out of it. And on top of that dh increased his child support! So yeah, I'm so ready for normal. 2% is rough....but I am so happy dh has a good job. And we have mortgage! Quote Link to comment Share on other sites More sharing options...
justme824 Posted January 5, 2013 Author Share Posted January 5, 2013 The temporary payroll tax decrease was indeed temporary. It was never supposed to go past 2012. It funds social security. There is no way that it could have become a permanent decrease....I thought it was common knowledge that the 2% was going to start coming out of paychecks again, starting January 1, 2013. I've been surprised that so many people didn't know it. I planned our budget changes with that in mind. I knew of it, but it still hurts when reality hits. Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted January 5, 2013 Share Posted January 5, 2013 It's not like we'll ever see that SS money, either. I wish they would keep their hands out of our pay and let US invest the way WE want to with our own money. We would do a much better job. I hate the whole SS thing. What a ripoff. No kidding. My husband's collection date for Social Security is two years behind mine, because I am older (of course, I made little money!). There are far fewer younger people working to be able to support the huge swell of boomers who are retiring. It is a mess waiting to happen. I know I could do a better job than this ridiculous government. And ALL tax increases are permanent while NO reductions are permanent. Ask me how I know. We are still paying a huge local tax hike to pay for an arena that was torn down 20 years ago. We also get to pay a tax for the new one. Lucky us. Quote Link to comment Share on other sites More sharing options...
Word Nerd Posted January 5, 2013 Share Posted January 5, 2013 The temporary payroll tax decrease was indeed temporary. It was never supposed to go past 2012. It funds social security. There is no way that it could have become a permanent decrease....I thought it was common knowledge that the 2% was going to start coming out of paychecks again, starting January 1, 2013. I've been surprised that so many people didn't know it. I planned our budget changes with that in mind. Totally agree. It was not intended to be permanent. Quote Link to comment Share on other sites More sharing options...
melmichigan Posted January 5, 2013 Share Posted January 5, 2013 I 'knew' it was coming, but it didn't dawn on me regarding today's paycheck for DH until I saw this thread. Quote Link to comment Share on other sites More sharing options...
Robin M Posted January 5, 2013 Share Posted January 5, 2013 The temporary payroll tax decrease was indeed temporary. It was never supposed to go past 2012. It funds social security. There is no way that it could have become a permanent decrease....I thought it was common knowledge that the 2% was going to start coming out of paychecks again, starting January 1, 2013. I've been surprised that so many people didn't know it. I planned our budget changes with that in mind. Something you may not realize is when the temporary tax decrease went into affect, it was for the employees only. We the employers continued to pay the 6.2 percent. I didn't think that was really fair because it didn't help small businesses at all, but we sucked it up. Our employees barely noticed the 2% difference. Kind of ironic really because I know by the time I get around to the age to be able to collect ss, it probably will all be gone. Which is why we have a private retirement fund. I'm not happy about the addtl medicare tax for those making over 200,000. Most small businesses fall with in this range so we are the the ones who take the hit for that wonderful tax. Quote Link to comment Share on other sites More sharing options...
AlmiraGulch Posted January 5, 2013 Share Posted January 5, 2013 The check I'm getting tomorrow is considerably less than normal. Between the 2% payroll tax increase, and the increase in benefits costs, it's not pretty. The worst part is that only 4 days of this check have the new rates. Next check is going to hurt. Quote Link to comment Share on other sites More sharing options...
speedmom4 Posted January 5, 2013 Share Posted January 5, 2013 I knew it was coming but it was a shock to see it in black and white. :ohmy: Elise in NC Quote Link to comment Share on other sites More sharing options...
GraciebytheBay Posted January 5, 2013 Share Posted January 5, 2013 I was shocked to see dh's check today. Between the increase in health insurance and the 2%, we are down $139 per paycheck = $278/month. I guess I wasn't in tune enough to realize how much it was going to hurt. I think this will be the catalyst to get us to lower our cable and switch to pre-paid phones. That still won't equal the decrease in pay, but we have to start somewhere. It's going to be an interesting year. Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted January 5, 2013 Share Posted January 5, 2013 I was shocked to see dh's check today. Between the increase in health insurance and the 2%, we are down $139 per paycheck = $278/month. I guess I wasn't in tune enough to realize how much it was going to hurt. I think this will be the catalyst to get us to lower our cable and switch to pre-paid phones. That still won't equal the decrease in pay, but we have to start somewhere. It's going to be an interesting year. Yeah, that "affordable" health care insurance rate hit....we will all be talking about that, entirely apart from the 2%. The two together is just not good. Especially in a still sucky economy. Quote Link to comment Share on other sites More sharing options...
TracyP Posted January 5, 2013 Share Posted January 5, 2013 Anyone who works will see their payroll tax back at it's full amount. Level of income is not relevant as it is not your income tax but your social security tax. LOL, or maybe it is... My dh's SS deduction was up where it used to be on today's check, but I guess we make a lot less than most folks here. The change is very little, when you make very little. Quote Link to comment Share on other sites More sharing options...
justamouse Posted January 5, 2013 Share Posted January 5, 2013 I am dreading it. Quote Link to comment Share on other sites More sharing options...
Alte Veste Academy Posted January 5, 2013 Share Posted January 5, 2013 We get paid on the 15th..I'm actually dreading the LES coming out. Well, since the 1.7% raise will hit the same paycheck, they will mostly offset each other. Quote Link to comment Share on other sites More sharing options...
Mom0012 Posted January 5, 2013 Share Posted January 5, 2013 That coupled with the 32% increase :scared: in our health insurance premiums (we were given a 1 week notice of) is going to kill us this year. DH over the last 3 years has already lost all bonuses and they have even taken away their Christmas party. Of course no overtime available. He either needs to get a second job or I need to go get one. It's the health insurance increases that are really going to get us. My husband's company is estimating that we will be paying 60% of our income for health insurance premiums down the road. I'm still in denial about that because it seems so utterly unbelievable. Quote Link to comment Share on other sites More sharing options...
peachskittles Posted January 5, 2013 Share Posted January 5, 2013 My sister will make $50 less a month, which is huge for a single mother. She doesn't keep up on this stuff so it's understandable that she didn't know that it was going to happen. For myself, I didn't even notice. After reading this post, I checked our current check and yep, they took out more...I guess I am so used to variable income it doesn't even register that I am making less. Quote Link to comment Share on other sites More sharing options...
Jerico Posted January 5, 2013 Share Posted January 5, 2013 The check I'm getting tomorrow is considerably less than normal. Between the 2% payroll tax increase, and the increase in benefits costs, it's not pretty. The worst part is that only 4 days of this check have the new rates. Next check is going to hurt. Ugh, is this really true? and how can I figure out what our next check will be? LOL, or maybe it is... My dh's SS deduction was up where it used to be on today's check, but I guess we make a lot less than most folks here. The change is very little, when you make very little. We don't make much at all and are barely breaking even so even this "small amount" is really hurting us. I understand why the tax is there and I'd probably be okay with it if it was actually helping the country's debt! But we can't run our household at this level of borrowing and deficit so why should the government be able to? And I'm scared to know what's going to happen with the insurance tax stuff. Quote Link to comment Share on other sites More sharing options...
AlmiraGulch Posted January 5, 2013 Share Posted January 5, 2013 Ugh, is this really true? and how can I figure out what our next check will be? We don't make much at all and are barely breaking even so even this "small amount" is really hurting us. I understand why the tax is there and I'd probably be okay with it if it was actually helping the country's debt! But we can't run our household at this level of borrowing and deficit so why should the government be able to? And I'm scared to know what's going to happen with the insurance tax stuff. I only knew how much my next check was going to be because the pay stub was already posted electronically on my company's intranet. I also know that it only included 4 days of the new rates because they didn't go into effect until 1/1. It would have been pretty easy to calculate, though. The social security payroll tax went up by 2%, and I also knew how much my benefits costs rose. Quote Link to comment Share on other sites More sharing options...
Melinda in VT Posted January 5, 2013 Share Posted January 5, 2013 Ugh, is this really true? and how can I figure out what our next check will be? Disclaimer: I am not an accountant or licensed to provide financial advice. I also have not yet had to issue checks for this year. Take the gross amount of your paycheck and multiply it by .062. That's your Social Security payroll tax amount. (You can see what it would have been under last year's tax rate by multiplying it by .042.) Quote Link to comment Share on other sites More sharing options...
blondeviolin Posted January 5, 2013 Share Posted January 5, 2013 Add me to the ranks of disgruntled people who want to use that money better than the government will. :glare: Quote Link to comment Share on other sites More sharing options...
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