Paychecks To Get Smaller

Posted on: 12:17 pm, January 2, 2013, by , updated on: 04:30pm, January 2, 2013

(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