The new year brings a change in the take home pay of everyone receiving a paycheck. Effective 1/1/2013 the payroll tax holiday for Social Security tax has expired. This means that the Social Security tax reverts back to the pre-2011 rate of 6.2%-up from 4.2%
Another component of the tax bill maintains the federal income tax withholding at the current levels. Any individual earning less than $400,000 and any couple earning less than $450,000 will see no additional federal income tax deducted from their paycheck. The change in the Social Security tax will be reflected on all Consumer Direct paychecks starting 1/4/2013. Please carefully review your paystub for this change.