Has anyone else's OASDI (Social Security & Medicare) withholdings jumped?

[HeadInSand]

I just received my pay stub and the section for OASDI (aka Social Security and Medicare tax) increased by a fair amount (multiple tens of dollars) per pay period.

See here under the Social Security and Medicare section for an explanation: http://www.eisneramper.com/Trends_an...ates-0612.aspx

I understand that this is really just reverting the tax rate back to where it was prior to the cut, but still -- wow.

I'm paid bi-weekly, so that's a $1000+ tax increase for just Social Security and Medicare -- neither of which I expect to see a dime of when I'm eligible.

So there ya go -- there's $1000+ less I'll be putting into the economy this year. And I'm sure that's just the beginning what I won't be spending this year.

How about the rest of you? Anyone else have anything to report?

Also, any chance this will get rolled back as part of the fiscal cliff deal?

[Sacajawea]

Not sure how your employer could do that... since nothing has been passed yet. At my company... we're waiting to "make up the difference" till we hear the bulletin from the IRS - because THEY don't know yet.

[gallard]

Originally Posted by HeadInSand

I understand that this is really just reverting the tax rate back to where it was prior to the cut, but still -- wow.

It's not "reverting" anything. It is a tax increase....period. That is all that there is to understand.

[brewmaster1918]

I forgot all about that. I think two years ago, they cut down our social security withholdings by 2%. I think that might have been temporary. There's so many financial/tax issues going on, that I haven't even heard this being discussed. They might be reverting back on this, which I believe would be 2%. I remember this was last year's big issue and they extended it for a year. I would guess that this is part of the Fiscal Cliff deal.

[Sacajawea]

Right, Brew. The employee's share of withholding (FICA & SSDI) was cut back, in '08 or '09, to try to help out folks... then there were multiple extensions of that payroll tax cut... which were set to expire 12-31-12, IF we went over the cliff.

Things are so screwed up, that employers don't have a clue what to do. We (my co.) are waiting to hear what happens - someday - from Congress, then we'll adjust the withholding for the first pay period of '13, accordingly. Since headinsand's check is probably for the last 2 weeks in Dec... it sounds like his employer jumped the gun... figuring we were going over the cliff... updating payroll software (too soon)... and so they're probably planning on "fixing that"... once they know wth is those %s are going to be.

Confused yet? Everyone else is.

[HeadInSand]

Originally Posted by gallard

It's not "reverting" anything. It is a tax increase....period. That is all that there is to understand.

Actually, you're wrong. Please see the section under link that I posted and referred to in my original post.

Brewmaster has it right. I remember as part of the handout/vote-buying orgy from about 2 years ago, there was a Social Security payroll tax cut by about 2%. That is now reverting back up by 2%.

Both me and my wife have been hit by this. So you can actually double the number in my original post for my "household".

So, all I have to say is standby -- keep a close eye on your first paystub of the year.

[obama2012]

Yea it's mucked up for sure, never did understand why they rolled back SS with holdings when we are already running a deficit as it was. Anybody making over $119,000 already gets a huge tax break as it is on SS and Medicare. Never have figured out how the government hasn't rised taxes to help pay for the two wars we started eleven years ago plus the money spent protecting us from Terrorist. You know the Homeland Security Act, TSA, ECT: Seems we spent close to $100,000,000 a year now to protect us from ourselves.

Nuts aint it?

[obama2012]

Originally Posted by HeadInSand

Actually, you're wrong. Please see the section under link that I posted and referred to in my original post.

Brewmaster has it right. I remember as part of the handout/vote-buying orgy from about 2 years ago, there was a Social Security payroll tax cut by about 2%. That is now reverting back up by 2%.

Both me and my wife have been hit by this. So you can actually double the number in my original post for my "household".

So, all I have to say is standby -- keep a close eye on your first paystub of the year.

But it's still just 2%, as compared to last year. Right?

[BoycottTheDay]

Originally Posted by obama2012

Nuts aint it?

Liberalism at its best, you shouldn't be surprised,

when in human history has marxism worked?

[Sue Doh Myn]

Originally Posted by brewmaster1918

I forgot all about that. I think two years ago, they cut down our social security withholdings by 2%. I think that might have been temporary. There's so many financial/tax issues going on, that I haven't even heard this being discussed. They might be reverting back on this, which I believe would be 2%. I remember this was last year's big issue and they extended it for a year. I would guess that this is part of the Fiscal Cliff deal.

Yep, they had to cut the SS premiums because a cut in the income tax rate wouldn't have effected the 47% that don't pay any.

[obama2012]

Originally Posted by BoycottTheDay

Liberalism at its best, you shouldn't be surprised,

when in human history has marxism worked?

Damn dude you're blaming liberals for the fact that anyone making more than $119,000 a year gets a huge tax break?

[BoycottTheDay]

The answer is never.

[harhey]

My son just got his paycheck and it was $68 short . Asked me what it was . I told him .TAX

[obama2012]

Originally Posted by BoycottTheDay

The answer is never.

You're right it's never. And since the USA has not gotten close to being a Marxist country, what's your point.

You sure your in the right tread?

[Deadmeat99]

Where are all the people who usually cry that they're "owed" social security? Reverting the rate back to where it was only a few years ago will help keep the program solvent. They should be cheering this money being sucked out of people's paychecks.

[19E71L_WTH]

Originally Posted by Sacajawea

Right, Brew. The employee's share of withholding (FICA & SSDI) was cut back, in '08 or '09, to try to help out folks... then there were multiple extensions of that payroll tax cut... which were set to expire 12-31-12, IF we went over the cliff.

Things are so screwed up, that employers don't have a clue what to do. We (my co.) are waiting to hear what happens - someday - from Congress, then we'll adjust the withholding for the first pay period of '13, accordingly. Since headinsand's check is probably for the last 2 weeks in Dec... it sounds like his employer jumped the gun... figuring we were going over the cliff... updating payroll software (too soon)... and so they're probably planning on "fixing that"... once they know wth is those %s are going to be.

Confused yet? Everyone else is.

It appears his pay date would be January 1 as the tax implications would be driven by date paid as opposed to earned. May not have jumped at all. As has been said, this is the result of the expiration of the temporary reduction in rate from 6.2% to 4.2%. This is all a game of semantics since the FICA funds are spent every year and the imaginary trust fund is full of iou's. As an aside, I find it interesting how the tax cuts that only benefited the filthy rich when enacted by the previous administration are now so darned important and beneficial to everybody.

And to the OP, did you intend to tell everyone what you make?

[HeadInSand]

Originally Posted by 19E71L_WTH

And to the OP, did you intend to tell everyone what you make?

I figured some would be able to deduce it, but whatever. I've got more important things to worry about these days.

[TheGecko]

So this whole SS thing got me thinking. My work just announced 3% pay raises on average for 2013. Yes I should be "happy" I am getting a raise at all, but along with the SS increase I will be effectively taking home 1% more pay. Oh whoops thats right my benefit cost across the board went up about 0.5% of my base pay. And I forgot to take into account inflation....

So the math works as follows:

Inflation - 4% (and I think it is actually higher but figure I can make some ground by eating beans and rice or changing my lifestyle)
Raise + 3%
SS - 2%
Benefits Increase -0.5%

Net Loss = -3.5%

And the downward spiral continues. (Both parties are to blame as they behave like children and support the same failed policies).

[Sloth9669]

Originally Posted by obama2012

Yea it's mucked up for sure, never did understand why they rolled back SS with holdings when we are already running a deficit as it was. Anybody making over $119,000 already gets a huge tax break as it is on SS and Medicare. Never have figured out how the government hasn't rised taxes to help pay for the two wars we started eleven years ago plus the money spent protecting us from Terrorist. You know the Homeland Security Act, TSA, ECT: Seems we spent close to $100,000,000 a year now to protect us from ourselves.

Nuts aint it?

They don't get a tax break by not paying the SSI tax over 119k because the Benifits check they get is maxed out and fixed to what is paid in. More blame the rich.

[obama2012]

It don't matter if their benefits are maxed out or not. Why should a guy making $30,000 have to pay 15% of his salary while a guy making $350,000 only pays out about 5 to 6%.