Paycheck A Little Smaller? Here's Why...

You may have been spared from paying more in income taxes, but your paycheck may have taken a hit after the Fiscal Cliff Tax Deal was reached earlier this month. Here's all you need to know...

If you take a close look at your first 2013 paystub you will probably notice that Uncle Sam took a bigger chunk of your pay for Social Security.

Taxpayers got a temporary holiday from paying the full 6.2 percent beginning in 2011, but that is over thanks to the fiscal cliff tax deal reached earlier this month.

That legislation stopped the income tax hikes for most Americans, but the Social Security payroll tax holiday was allowed to expire. AOL explains it like this:

Social security is financed by a 12.4 percent tax on wages, with employers paying half and workers paying the other half. During the temporary holiday, the employee contribution was reduced to 4.2 percent in 2011 and 2012, saving a typical family about $1,000 a year. 

To see this in a different way, check out this bar graph showing how much more in taxes people will have to pay by income.

Closer to home, we asked on Facebook how much lighter your paycheck was and how you felt about it. Here’s what people had to say:

Kathie Johannes I will find out on the 15th as it is the first payday of the year for us both. I heard it is in the social security area. UGH...there goes my raise I guess.

Marshall Guthrie Remember....Elections have consequences! Too bad people didn't pay more attention to things like this BEFORE the election!

Jake Mossman just paying the percentage that we use to pay..not that I'm okay with it or anything

Jill Brooks We are taking about $80 less a month home. That is coming out of our 'entertainment' budget. We do not go to the movies (got Netflix) and will probably drop our landline this year. Weekly 'nice restaurant' nights will be dinner at home and out for dessert or a drink. Soooo....we suffer, small businesses suffer and for what? To run the government for a few days.

JustMe January 14, 2013 at 11:40 PM
Thanks for nothing Obama!
lolo peeg January 15, 2013 at 12:48 AM
I understand that it had to be done, but as far as I am concerned the president lied to the American people when he promised middle class taxes would not be increased! Kind of like a used car dealer telling you that the car doesn't burn a drop of oil, only to find you need to put a quart in after two weeks.
Katy G January 15, 2013 at 01:59 PM
Stupid president caves to Boehner and now the middle class has to pay. Although I do understand that we are back to the 6.2% Bush-era social security rate. It's funny how people easily forget that the rates were higher on the middle class when Bush was in office.
Dirk January 15, 2013 at 02:50 PM
Knew the 'blame Bush' narrative would raise it's Kool-Aid drinking head somewhere during this article. Thanks Katy for your tiring predictability.
Jim Wuerl January 15, 2013 at 03:03 PM
Umm Katy? Its the other way around. Boehner is a spineless wimp who drops his pants whenever given the chance. That is why conservatives are so angry with him. If Obama gave even a rip about our countries financial condition, we wouldn't be in this predicament. The problem isnt too much taxes. Its the uncontrollable spending. Republicans ARE paying the bills. OBAMAS credit limit is maxed out. He should OT get anymore raises in "his creditline" until OBAMA and the democrats DEVELOPE AND LIVE within a honest budget. The senate, contolled by Harry Reid, hasnt had nor proposed an actual budget in more than 4 friggin years!!!!!! YOU SHOULD BE ANGRY ABOUT THIS!


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