Expect some pay-stub confusion ('Making Work Pay' 2 percent hike in withholding?)

Durango Herald ^ | 12/31/12 | Jordyn Dahl

[Libloather]

The Internal Revenue Service typically distributes withholding tables to employers at the end of November that reflect changes to the federal income-tax rate, but no tables have been sent for the New Year, said Mark Betts, payroll director for ASAP Accounting & Payroll Services Inc. in Durango.

**SNIP**

Employees should be prepared to take home 2 percent less pay in their checks this year as the Social Security payroll tax cut expires. President Barack Obama initially included the tax cut extension in his fiscal cliff negotiations, but it has not been included in recent proposals.

The tax cut was intended as a temporary stimulus in 2011 and 2012. The rate went from 6.2 to 4.2 percent for employees and from 12.4 to 10.4 percent for self-employed people.

[Libloather]

Hussein pimped that $40 increase in paychecks just a few years ago. Well, now he wants it back.

2009 - Treasury Directs Employers to Begin Withholding Taxes

Obama says his signature "Making Work Pay" tax break will affect 95 percent of working families.

[mountainlion]

I wonder how many people will decide they can make as much or more on welfare?

[ladyjane]

There are many people who are going to cut back their work because of taxes.

[napscoordinator]

I wonder how many people will decide they can make as much or more on welfare?

Oh definitely. I was on unemployment from October 2011 to March 2012 and received 1,004 dollars every two weeks. I got a job and my pay every two weeks is 1,125. So I am working for 250 a month (basically). However, I feel better and more fulfilled which is priceless.

[NonValueAdded]

Of course he cut back on that extension. He wants the low-wage earner to feel some immediate "cliff" pain to increase the pressure on Congress.

I will know tomorrow how my company handles this. These will be 2012 hours but pain in 2013. This should be interesting.

[CharlotteVRWC]

I’m confused. Is the the Bush tax cut for the middle class?
or a different Social Security tax cut that will expire?

[generally]

Don’t you just love the Newspeak terms the libs invent?

“Making Work Pay” instead of “Making Work Pay you less while the government and gimme crowd steals even more of your hard-earned money from you” would be a better title.

[generally]

Here is my simple solution to the economic crisis:

Cap the pay for the President, Senators, and Congresscritters and government employees at a level equal to the median wage of all private sector workers in the U.S. (including illegals working for sub-minimum wage). No special perks or privileges. You are public servants, not our masters.

You want a pay raise, Mr. Congressman? Then stop passing legislation that hurts the economy and the private sector workers. When you help us, you’ll help yourselves.

[V_TWIN]

“Hussein pimped that $40 increase in paychecks just a few years ago. Well, now he wants it back.”

Just checked my pay stub online, the OASDI (old age, survivor and disability insurance, which is more commonly referred to as Social Security)just went up $50.

So obama is plus $10 on all my paychecks........isn’t that what gangsters call “the VIG”?

[Dutch Boy]

I know 2 for sure. No matter how the rest of us in the family try to explain that welfare is like slavery, they don’t get it. The government is their master. They dare not do anything to chance losing the “free” money.

[Rusty0604]

He was pimping $40 per pay check. That would mean gross pay would be $2000 on each check. I’m sure his worshipers believed the $40 claim even if they got paid $400 weekly.

[BfloGuy]

Of course he cut back on that extension. He wants the low-wage earner to feel some immediate "cliff" pain to increase the pressure on Congress.

That may well be but it was a stupid move to cut that particular tax in the first place. It was never going to spur any economic growth [and it didn't], but it did put Social Security into an even worse situation.

[Rusty0604]

They claimed it wouldn’t reduce the calculation for benefits, but I don’t believe them.

[NonValueAdded]

Agreed. If shortchanging SocSec “trust” fund was to be stimulating, it would have made more sense to drop the 2% from the employer side. But it was done to replace the Making Work Pay credit using budget tricks, since I am sure messing with SocSec didn’t count.

[libertarian27]

Last week my company sent a mass-e-mail out that they would be taking out 23% more for the payroll tax - 2% increase in taxation.

Many employees are low pay part-time...they will not be amused

Many voted for Øbama...will be fun to hear the screaming..."Here's your sign"

[Post Toasties]

In the Corruptocrat Controlled State of Illinois, the lame duck Legislature passed a 2% income tax increase, effective immediately, in 2010, so I didn't see a penny of extra after tax income because of the temporary federal FICA withholding reduction, but it looks like my merit pay increase since then will be virtually wiped out by the Federal tax jumping back up.

Thanks, Democrats, for less than nothing.

[BfloGuy]

They claimed it wouldn’t reduce the calculation for benefits, but I don’t believe them.

Oh, the Fed'll just print up the difference and buy some bonds. There [hands wiping together as if problem solved].