Your smaller paycheck: explained

Jacksonville, TX (KYTX) -- Workers looked at their paychecks Tuesday and were taken by surprise.

"Since it is the first payroll of the year, a lot of people are questioning why their net pay went down," Pam Pate, Senior Vice President of Human Resources at Austin Bank, said.

 It's no mathematical error-- some tax cuts have expired.

"Due to stimulus laws passed in Congress, they gave us a temporary reduction to 4.2% and that covered years of 2011 and 2012," Pate said.

Social security payroll tax is back up to 6.2%, meaning less in your pocket. But those cuts were only meant to be temporary.

 "It looks like your taxes went up 2%, but they really didn't , its just 2% we've been getting went away," Harold Doty, Dean of the College of Business and Technology at UT Tyler, said.

He says not to hold your breath for it to go back down.

"None of us want to pay more taxes, but we all know government revenue has to go up and spending has to come down for the future. So, this is one where we have to bite the bullet," Doty said.

And he adds since the tax is crucial to fund Social Security, really our nation can't afford not to change it.


To find out more about Facebook commenting please read the
Conversation Guidelines and FAQs

Leave a Comment