Post by gogreengowhite on Jan 1, 2013 8:32:11 GMT -5
How will this affect your finances?
Fortunately, I just received a large increase in pay. Unfortunately, this 2% increase for both of us negates almost 40% of that raise (my husband makes much more than me). I was hoping to massively increase our retirement/savings...but it looks like that will be a little more slow going.
I barely noticed it when it went into effect, so I don't expect to notice much now. And I thought it was incredibly dumb to begin with to deliberately make a temporary decrease that will then just catch people off guard when it is allowed to expire. How in the world is that helping anyone?
Post by fortmyersbride on Jan 1, 2013 10:05:59 GMT -5
Sorry for the dumb question, but we use payroll services for our nanny and I was trying to figure out why her net went down $10 this week while her gross is the same. Is this why?
The timing of the expiration is decent since gas prices have gone down so much lately. It is suddenly about $12 less to fill up my minivan than it was at Thanksgiving.
It doesn't change anything for us because we dont pay into SSDI anyways. Since the payroll tax holiday took the place of a tax credit from the previous year, we saw a change last January.
It will affect us. My only hope is that DH's raise mid year helps. As a fed we only received a .5% increase to help offset the increase in health premiums since they won't freeze those. I'm not even sure when the half a percent goes into affect.
Well, we each got 2% raises in the fall, so we'll just see those disappear. But I had been hoping (even though I knew it was unlikely) that our raises could cover the toll and subway increases. Instead we'll have to cut back on savings to cover those cost of living increases.
My understanding (reading an article on CNN, so take that for what it's worth) is that this only affects those with higher incomes, right?
We have a HHI of under 100k so I don't think it affects us at all.
A 2% reduction in pay right now would be really bad for us, we're in desperate need of some financial changes and don't have a ton of flexibility. However, I do think that even at our HHI if we needed to pay higher taxes in order to improve so many things in our country, I'd be willing to make some changes.
I haven't even calculated our impact anyone have a calc link? I'm sick n lazy on iPad to search
I used paycheckcity.com and they have it updated already.
DH started a new job yesterday so we won't have anything really to compare it to other than the net salary estimations that I did during salary negotiations. We will lose almost $200/month which would have been a nice addition to our savings and planning goals.
It will affect us. My only hope is that DH's raise mid year helps. As a fed we only received a .5% increase to help offset the increase in health premiums since they won't freeze those. I'm not even sure when the half a percent goes into affect.
It will affect us. My only hope is that DH's raise mid year helps. As a fed we only received a .5% increase to help offset the increase in health premiums since they won't freeze those. I'm not even sure when the half a percent goes into affect.
My understanding (reading an article on CNN, so take that for what it's worth) is that this only affects those with higher incomes, right?
We have a HHI of under 100k so I don't think it affects us at all.
A 2% reduction in pay right now would be really bad for us, we're in desperate need of some financial changes and don't have a ton of flexibility. However, I do think that even at our HHI if we needed to pay higher taxes in order to improve so many things in our country, I'd be willing to make some changes.
bucky, anyone who pays into SSDI will now have to pay 2% more.
DH doesn't pay into SSDI so a reduction of 2% will mostly cancel my merit increase so it really won't bother us.
The timing of the expiration is decent since gas prices have gone down so much lately. It is suddenly about $12 less to fill up my minivan than it was at Thanksgiving.
There's no way we spend $4500/year on gas - and certainly not $4500 in savings.
The 2% payroll tax holiday is at most worth about 2500
The 4500 you cite is what the ave. Americans tax bill would have gone up if the bush cuts expired across the board
I think it will cost me and H about $3,000 combined for the year. It sucks, but honestly I wasn't that happy when they initiated the payroll tax holiday in 2010 to begin with. I don't think we should be cutting SS tax rates.
Is it $113k HHI (gross) or single? Not that the difference would save us a ton.
It's a max per earner after which FICA doesn't apply. If you make 60K and your spouse makes 300K, then you pay 10200 as a family. If you each make 113K, then you pay 14K.
You're obviously not talking about just the 2% increase, correct?
It's a max per earner after which FICA doesn't apply. If you make 60K and your spouse makes 300K, then you pay 10200 as a family. If you each make 113K, then you pay 14K.
You're obviously not talking about just the 2% increase, correct?
After you make $113K, you pay 0 FICA tax. That is for everyone in the country. The 2% increase is for anyone who pays FICA. Thus you will pay 2% more of your income, up to $113K, per earner in 2013.