First Check Reality Check…

By now, almost everyone who earns one has received their first paycheck of 2013. Depending on your income bracket and your budget the reality of what the expired Payroll Tax Cut means to you is starting to hit home. 2% more out of your paycheck probably didnâ€™t sound like much in the abstract when you hear it on the news, but now that the actual numbers are staring you in the face, the reality is something else entirely.

One night this week, just after dark, our doorbell rang, not a common occurrence for this empty nest. It was the young man who does handy work for us. Bob, not his real name, is sincere, hardworking, and trustworthy. He holds down a full-time blue collar job managing a small warehouse, helping his â€œmoonlightingâ€ customers at night and on weekends. Heâ€™s single, has his own apartment, and drives a beautiful extended cab truck that is his pride and joy. Weâ€™ve come to know him well enough to know heâ€™s not a party boy; he keeps a schedule and a budget.

When Bob stepped inside I could see how upset he was. Pam, he said, Iâ€™ve stopped by to see if you have any extra work for me. I got my paycheck today and the new taxes are going to cost me over $100 a month. Iâ€™m not sure what to do.





What does the Payroll Tax Increase mean to you?