Paychecks to get smaller for Americans after tax cut expires - Toledo (OH) News, Weather and Sports

Paychecks to get smaller after tax cut expires

Posted: Updated:

The nation may not have gone over the fiscal cliff, but the new deal will have millions of American workers seeing smaller paychecks.

"It could be much worse," Ron Gould, a certified financial planner, told 13abc.  "I think its going to surprise people."

In 2011, the President and Congress, put a payroll tax cut in place.  It lowered it to 4.2% down from 6.2%.  The idea was to give Americans some extra cash each paycheck to help boost the economy.  However, the tax cut expired Monday, meaning workers are shelling out more in payroll taxes, money that funds Social Security.

"So now, we're going to start paying again, but we still have to make up that one year of 2% less," Gould said.

Here is what that means for you.  If you make $50,000 a year, you'll pay an extra $1,000 in payroll taxes this year.

The bigger the paycheck, the bigger the amount.  People making $100,000 a year will pay and extra $2,000.

"When they get that first check and if you're in a position where you get paid the same, all of a sudden there's a chunk missing," Gould said.  "You're going to realize that."

Gould says the increase will also be felt economically, however, he insists it won't be drastic.

He also says if people have concerns about the fiscal cliff deal, they should look into talking with a certified financial planner.  Click here to find one in your area.

  • LocalMore>>

  • No injuries after water rescue at Farnsworth Metropark

    No injuries after water rescue at Farnsworth Metropark

    Friday, April 18 2014 10:43 PM EDT2014-04-19 02:43:46 GMT
    Waterville crews are trying to reach passengers on a boat stuck on the Maumee River. It's happening near Farnsworth Metropark in Waterville. No one is hurt, but a family is stuck on a boat that has been
    Waterville crews safely rescued passengers who were stuck on a boat on the Maumee River Friday afternoon. It's happened near Farnsworth Metropark in Waterville.
  • Missing boater's father: "We just want to get him home"

    Missing boater's father: "We just want to get him home"

    Friday, April 18 2014 10:09 PM EDT2014-04-19 02:09:36 GMT
    We are learning more about the two remaining missing boaters on Lake Erie. Bryan Huff of Rossford is an experienced fisherman. His dad says he lived on the lake. Andrew Rose of Maumee works as a bartender
    The Ottawa County Sheriff concluded his department's search for the two remaining missing boaters on Lake Erie Friday evening.
  • Easter Sunday forecast

    Easter Sunday forecast

    Friday, April 18 2014 6:12 PM EDT2014-04-18 22:12:06 GMT
    Here is your Easter Sunday forecast. It will be a cool start with a low near 34 degrees. You may want your winter coats for sunrise service. The sun will rise at 6:47am on Easter. Once the sun comes up,
    It will be a cool start, with a warm and sunny afternoon.

Area Events Calendar

See It, Shoot It, Send It!