More Money Staying In Your PaycheckA new tax law, which took affect January 1st, is lowering the amount of Social Security and Medicare taken out of your paycheck from 7.65% to 5.65%.
You may have already noticed that your take home pay is a little higher than it was last year.
A new tax law, which took affect January 1st, is lowering the amount of
Social Security and Medicare taken out of your paycheck from 7.65% to 5.65%.
"I don't think a lot of people knew it was coming, so hopefully it's a good surprise for people to see a little bit more in their paycheck instead of having so much tax taken out," said Brian Beiswenger, manager of H&R Block.
You don't have to file your taxes before you see these two percent savings. All you have to do is look at your pay stubs. But for those who are self-employed, it will take a bit longer.
"Being it's a 2011 tax law change, the self-employed person who pays their own social security and medicare either quarterly or at end of the year, won't see that benefit until they file the first quarterly estimate or their tax return for 2011," said Beiswenger.
Beiswenger says there's only one reason he can think of for putting a few extra dollars in the taxpayer's pocket.
"I guess it's part of stimulating the economy. It's a way to get more money in everyone's pocket in order get this economy rolling," said Beiswenger.
This tax break is supposed to last until the end of the year.