Paychecks To Get Smaller

(Washington, D.C.) Your paycheck is about to get smaller with the expiration of the payroll tax reduction.

For two years, the payroll tax rate has been 4.2% but as of Tuesday that reverted back to 6.2% on the first $113,700 in wages.

Those earning the national average salary of $41,000 will receive $32 less on every biweekly paycheck.

The higher the salary (up to $113,700), the bigger the bite, but business owners say their lower wage employees will feel it most.

Income:            Was 4.2%        Now 6.2%      Difference         Bi-Wkly

 $20,000           $840                $1240              $400                $15

$30,000           $1260              $1860              $600                $23

$40,000           $1680              $2480              $800                $31

$50,000           $2100              $3100              $1000              $38

$60,000           $2520              $3720              $1200              $46

$70,000           $2940              $4340              $1400              $54

$80,000           $3360              $4960              $1600              $62

$90,000           $3780              $5580              $1800              $69

$100,000         $4200              $6200              $2000              $77

$110,000         $4620              $6820              $2200              $85

$113,700         $4775              $7049              $2274              $87

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