PDA

View Full Version : Social Secury Withholding Increase



Buster
01-17-2013, 12:49 AM
I was talking to some FER Employees today and they said their SS went up $80.00/PP and they where H band employees...Go God..thats $2080.00/year..I didn't question them, but is that true?


Shed some light on how hard you were hit..

Moore
01-17-2013, 04:19 AM
SS went up for me $50.00/PP.

OBGibby
01-17-2013, 04:44 AM
Yes, and then some. 2% hike. Mine was closer to $85.

k0nkuzh0n
01-17-2013, 05:05 AM
It didn't go up, it went back to what it was. Last year was a 'break', not the norm.

James48843
01-17-2013, 07:51 AM
Buster, the Obama tax break kicked in in pay period 01 of 2011. That's when Social Security OASDI taxes were temporarily reduced from 6.2%, to 4.2% (saving 2%) for a special economic boost trying to jump start the economy.

Here is my deductions before and after the Obama tax break of 2011, which republicans in Congress phased out as part of the tax deal at Christmas: \




PP 01 2013 - OASDI Social Security- $ 252.75 (employee share 6.2% since Jan 1, 2013, total rate 12.4% )
PP 26 2012 - OASDI Social Security - $ 170.57 (employee share *4.2% reduced since Jan 2011 until Dec 31, 2012, total rate 10.4%)

PP 26 of 2010 OASDI Social Security - $ 256.22 (6.2%- Pre Obama tax break from Dec 2010- the 6.2% rate was actually sent by Ronald Reagan and Tip O'Neill in the 1986 Social Security deal that raised the retirement age from 65 to 67. That 6.2% Employee share, and 12.4% total rate, was agreed to in 1986, and phased in fully in 1990. See historic rates here: http://www.taxpolicycenter.org/taxfacts/content/pdf/ssrate_historical.pdf )


As you can see, I actually paid slightly MORE in 2010 than I do now. Not sure exactly what the dffference is- I think it has to do with the adjusted gross income being slightly different due to changes in the cost of my health care pre-tax premium.

So....in actuality, I am paying less in Social Security taxes today than I did two years ago, and I was able to have that two year Obama tax break while they tried to boost the economy. Too bad those in Congress blocked all the president's jobs bills, and refused to help in any of the other proposals to jump start jobs, or we'd be in a much better position in the economy right now.

RealMoneyIssues
01-17-2013, 08:04 AM
Too bad those in Congress blocked all the president's jobs bills, and refused to help in any of the other proposals to jump start jobs, or we'd be in a much better position in the economy right now.

Take it to the politics pages because as you know James, there is a huge difference in opinions (political or otherwise) on what is good to create jobs... I would differ with your opinion that those proposals would have done any good...

Buster
01-17-2013, 12:16 PM
Thanks for the feedback...I forgot about the break (cut) last year..and now it came back to haunt us...Just shows ya..