Your Paycheck Will Be Smaller Next Week

It's all but certain that payroll tax cut will expire Monday
By John Johnson,  Newser Staff
Posted Dec 29, 2012 12:04 PM CST
Your Paycheck Will Be Smaller Next Week

No matter what does or doesn't happen with this weekend's fiscal cliff negotiations, most Americans are going to see a smaller paycheck next week, reports the Wall Street Journal. That's because neither party is still talking about extending the 2-year-old payroll tax cut, which expires on Monday, reports the New York Times. As a result, the Social Security payroll tax will go back to 6.2% from the current 4.2%—meaning a household earning $50,000 a year will pay an additional $1,000 in taxes, or about 20 bucks a week. (Read more fiscal cliff stories.)

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