Payroll Tax increase

[auberge]

How much is it costing you?

Me: I won't see mine until the 15th but my husbands is $95 less. Boo

[ReenaP]

I'm losing $88 a month net. DH will lose a little more than that. Combined it's definitely a noticable hit.

[auberge]

Yes, I meant $95 per pay period (just dh). So we will be close to $400 as well. Noooooo! Wahhhhh!

[Deleted]

Over the year, it will cost us whatever the difference between the old full amount and the new full amount is, times two.

We both max out on FICA and therefore don't pay it all year long, so our paychecks at the beginning of a new year are always several hundred dollars less than at the end of the prior year because FICA starts being taken out of our checks again in January (and that's assuming that we maxed out our 401ks at the last paycheck -- usually it is a little earlier than that because our math is bad, so that can make even more of a difference between December 30 and Jan 15 paychecks).

[EmilieMadison]

Over $200/month less

[SJ]

Jan 4, 2013 13:19:59 GMT -5 v said:

Over the year, it will cost us whatever the difference between the old full amount and the new full amount is,

Same for me.

[ECB]

Based on today's stub - for me alone, $400. My heart stopped when I figured that out.

[savannah11]

My paycheck was quite a bit lower and then I realized a large chunk of that was the California tax increase. I get to blame two things.

[karinothing]

DH doesn't get his check till next week so I am not sure. I think it will be like $100/200 per paycheck for him though.

FOR me! I actually came out ahead. So I started a dependent care FSA this year.

It takes $192 out of my paycheck pre-tax
This comes to $184 post tax
When I get reimbursed the $192 I should have a net gain of $8

So take that payroll tax raise! (It was about $50 more out of my check, but again I don't see it so yay!)

[y4m]

Jan 4, 2013 13:19:59 GMT -5 v said:

Over the year, it will cost us whatever the difference between the old full amount and the new full amount is, times two.

I believe the max was $11,450 last year, and will be $14,099 this year. So $2648 more each, or about $5300 more for a couple both maxing out. Plus the new medicare surcharge of .9% on anything over $200K.

[Pom]

Based on H's paystub today- over $400

[Deleted]

DH's check has changed a couple of times recently, so it's hard to tell what the difference is on his. He got paid today, I don't get paid until next week.

I think my check went up $20-30 when the holiday started so I'm guessing maybe $60 a month from my check and that means probably about $50ish from DH's since he makes a little less than me.

[Deleted]

$700+ a pay period until we hit the cap.

[Deleted]

~$200 a month. DH had OT this pay period (unusual) so I'm not seeing the hit yet.

I also adjusted my with holdings because we start paying state taxes again this year (First time homebuyer state credit for the last 3 years), so we'll be getting less there as well.

Time to start pulling childcare pre tax! (we haven't up til now based on our CPA's recs.)

[thatgirl2478]

$84 / mo

Booo

[schrodinger]

About $100/paycheck for each of us, so ~$425/month. Ugh, I hadn't done the math yet, that's more than I thought.

[gt7301b]

Jan 4, 2013 13:44:54 GMT -5 @septimus said:

$700+ a pay period until we hit the cap.

This is the first time I have truly felt jealous of a big dog. $700 is 2% of your pay.

[fences]

I haven't seen yet, but I expect about $160/mo. Not a lot, but still a bummer.

[pt716]

My pay check has gone up $50. Hmm...

[mccallister84]

49 a pay for me, 47 for SO, so just a little under $200 a month. I can't imagine this isn't going to have a massive impact on people.

[y4m]

Wait how can the payroll tax change alone be $700 for some of you guys given that it only applies to $113K in income? Are you just looking at a change in withholding from your last 2012 check to this one?

[biscoffcookies]

Jan 4, 2013 13:25:03 GMT -5 karinothing said:

DH doesn't get his check till next week so I am not sure. I think it will be like $100/200 per paycheck for him though.

FOR me! I actually came out ahead. So I started a dependent care FSA this year.

It takes $192 out of my paycheck pre-tax
This comes to $184 post tax
When I get reimbursed the $192 I should have a net gain of $8

So take that payroll tax raise! (It was about $50 more out of my check, but again I don't see it so yay!)

I think your dependent care FSA contributions are actually subject to the payroll tax, even though they are "pre-tax." I read the other day that, for purposes of FICA, only medical/dental insurance premiums are excluded.

[Deleted]

Jan 4, 2013 14:24:24 GMT -5 y4m said:

Wait how can the payroll tax change alone be $700 for some of you guys given that it only applies to $113K in income? Are you just looking at a change in withholding from your last 2012 check to this one?

It could be that amount for all of the paychecks until you hit $113,000 for the year, even though you hit $113,000 early, right? Or is the amount taken out of each paycheck not dependent on the amount of the paycheck?

But I'll also say that this poll is kind of weird in that the amount of increase per paycheck will vary widely depending simply on how often you get paid. A person who gets paid once a month could have a per paycheck hit of more than 4 times that of someone who gets paid every week even if they're putting the same amount in per month. So there are a lot of apples being compared to oranges here.

[discombobulated]

Jan 4, 2013 14:24:24 GMT -5 y4m said:

Wait how can the payroll tax change alone be $700 for some of you guys given that it only applies to $113K in income? Are you just looking at a change in withholding from your last 2012 check to this one?

It applies to the FIRST 113K.

[Deleted]

Jan 4, 2013 14:29:33 GMT -5 farmvillelover said:

Jan 4, 2013 14:24:24 GMT -5 y4m said:

Wait how can the payroll tax change alone be $700 for some of you guys given that it only applies to $113K in income? Are you just looking at a change in withholding from your last 2012 check to this one?

Apparently I'm dumb, I thought it was going to get averaged out over the year.
So if my H gets a bonus/commission check this month, the entire amount will be subj to the increase.

On the plus side, that gets him to bigger paychecks earlier. I love when my FICA drops off for the year because it feels like a raise even though it totally isn't.

[diamondsnpearls22]

Dh got his paycheck today...$35 less, he gets paid every week, so about $140 a month. I guess its not too bad. I don't get paid till the 15, so I have to wait and see.

[njohnson1972]

Jan 4, 2013 13:36:42 GMT -5 y4m said:

Jan 4, 2013 13:19:59 GMT -5 v said:

Over the year, it will cost us whatever the difference between the old full amount and the new full amount is, times two.

I believe the max was $11,450 last year, and will be $14,099 this year. So $2648 more each, or about $5300 more for a couple both maxing out. Plus the new medicare surcharge of .9% on anything over $200K.

That is not correct.

2012 Max $4,624.20 = 110,100 x 0.042
2013 Max $7,049.40 = 113,700 x 0.062

So the max increase is $2,425.20/year per person.

[Deleted]

I'm guessing $100/month. I got a lump sum today which messed everything up.

[y4m]

Jan 4, 2013 14:42:26 GMT -5 njohnson1972 said:

Jan 4, 2013 13:36:42 GMT -5 y4m said:

I believe the max was $11,450 last year, and will be $14,099 this year. So $2648 more each, or about $5300 more for a couple both maxing out. Plus the new medicare surcharge of .9% on anything over $200K.

That is not correct.

2012 Max $4,624.20 = 110,100 x 0.042
2013 Max $7,049.40 = 113,700 x 0.062

So the max increase is $2,425.20/year per person.

Assuming you have an employer paying their 6%. I just did it without that piece, since if you're self-employed, you pay that too, and it didn't change.

Thanks to those point out that $700 could be extreme front loaders...but then you'll only be paying that for the first part of the year...

[cjeanette]

I haven't been paid yet. H said his went up around $70. I haven't seen the paystub to verify though, not his area of expertise.