Social Security Tax Change

Two years ago, the Federal government implemented a temporary payroll tax cut that reduced the employee contribution to Social Security tax from 6.2 percent to 4.2 percent.  On January 1, 2013, that temporary payroll tax cut expired; therefore, effective January 1, the employee contribution rate deducted for Social Security tax returned to the original 6.2%.  That change is reflected in this weeks paychecks, and it is the reason the net amount of your paycheck may be lower than anticipated.

Sincerely 

Human Resources

My two cents on the Matter...

 

Although I had no idea this reduction was ever granted, I never really take the time to look at my deductions because it repulses me, so I couldn't help but get a little pissed off.  2013 just started and already my bring home pay was reduced, my internet service is scheduled to go up and we are also in jeopardy of paying higher school taxes among other hikes.  

Being a middle class worker is certainly not for me anymore. it is getting harder and harder to pay bills on time each month and I can only see things getting a lot worse before it gets any better.  Our Government is not looking out for those who work hard for a living, so its up to one to decide what else can one do to bring a little extra cash in the house.  We don't want to do anything illegal but we can learn from the experts on how to rise above it unscarred, if even possible.  

Would be wonderful to hear what you think...  

 

Failing to Govern

Since the economy began to fail many of us have learned the unscrupulous ways to which the mishandling of money has made a huge impact on the middle class.  We have been faced with a huge unemployment rate, foreclosures, and price hikes, and our government simply seems to scare us more and more every year.

As a commuter my monthly expenses to travel back and forth to work is $285.  Every year taxes and rate hikes affect me and my family in a big way and we barely make it to pay every bill that comes with owning your own property.  Receiving transit checks pre-tax assisted me a whole lot as I only had to pay a balance of $55 to obtain my monthly tickets.  Imagine my surprise though when I as well as others received this email the last week of December.

“To Transitchek Participants Outside of the New York City Area"

Many of you received an email from the Transit Center regarding the changes to the $230 transit pre-tax benefit cap. The 2011 tax extension bill of the American Recovery and Reinvestment Act expired December 2011 and Congress has not extended this pre-tax benefit for 2012. Thus, as part of the government ordinance, the new monthly transit pre-tax benefit cap has been reduced to $125 and the new monthly parking cap is $240.

As a result, the reduction of the Monthly Pretax Transit Cap may affect staff that has more than $125 Transitchek commuter benefits in the following ways:

1. Your pre-tax transit benefit was automatically reduced to $125.00 for the month of January due to the expiration of the American Recovery and Reinvestment Act…”

Since I  didn’t expect any less from our dear government I sat down and wrote a poem that will only tap into one of the many reasons why this government really blows. Many other reasons will soon follow...

 Government Failure