Friday proves to be a tough payday as tax holiday expires

11:19 PM, Jan 11, 2013   |    comments
Photo by Hugh Pinney/Getty Images
  • Share
  • Print
  • - A A A +

For two years, taxpayers enjoyed a break from a higher tax for social security. But as of this month, that holiday is over and many folks noticed the decrease in their paycheck Friday.

If your household income is $30,000, you'll receive about $50 less each month.

For $50,000 salaries, you will see around $83 less a month.

For $100,000, you will have $167 less take home pay a month.

For some folks it's a tank of gas, for others it's a trip to the grocery store, but for most of you 2% more is coming out of your paycheck now.

Employees at Wieniewitz Financial said they noticed the difference.

"Even though we had some knowledge it was going to be happening, it's still disappointing," said employee Ann Hinkle.

"You never want to see a decrease on your paycheck. You work hard and you don't want to see less income," said employee Melanie Blakney.

This is the first time many folks have noticed that the payroll tax holiday expired. Put into place two years ago by President Obama, the stimulus stopped on January 1st.

"It's a big deal. It affects everybody differently depending on their lifestyle but it does affect Middle America," said Trae Wieniewitz.

These financial gurus budget every penny. They say even though it's not a large deduction, it still impacts them.

"I commute everyday from Maryville. So that's a tank of gas. I also have a year-and-a-half old so that's also two cases of diapers," Blakney said. "You have to take a step back and look at your family and say maybe we won't go out to eat or go to that movie."

Wieniewitz sat everyone down before the holidays to let them know the decrease in pay was coming.

"We wanted to walk through that with our employees so they knew that was coming and let them know that we wanted to work with them. We have attorneys and CPAs that we can use as a resource to help that not hurt as much when the change did occur," said Wieniewitz.

The payroll tax break was never meant to be permanent.

Most Watched Videos