Stupid idea to begin with, but now not only did the employee paychecks get smaller, but the employer’s matching tax went up. So while each of my employees took a $50 to $120 monthly hit, I get to take the hit for ALL OF THEM as well, which for me will be about $800 a month PLUS the higher self-employment tax I will pay for myself.
As soon as I get the final numbers I will raise my prices by the same percent to cover this new cost. I will also tell every customer who comments on the higher prices that I had no choice with the new Obama taxes that just went into place.
Boy, is this going to be inflationary...
I hate to read that.
Minimum wage also rose - a lot in some states.
The stupidity is growing exponentially at this point.
The employer’s matching tax for SS was never dropped, so it shouldn’t “go back up”. The only increase will be that the cutoff will go up a bit for 2013, in line with inflation.
Since you are an employer, you should have known that, since you have been paying the 6.2% employer SS tax for the past two years, not the 4.2% employee SS tax.