Social Security Tax Increase
JOPLIN, MO.--- At Freeman Health System, workers are already making changes to deal with the two percent increase in social security taxes.
"Our employees are really going to see that distributed out over paychecks. It's going to take a little bit away, but I don't think any of us are really going to see a huge amount," states Jamie Hirshey, Payroll, Freeman.
"Our employees are really going to see that distributed out over paychecks. It's going to take a little bit away, but I don't think any of us are really going to see a huge amount," states Jamie Hirshey, Payroll, Freeman.
Jamie Hirshey works on the payroll staff for Freeman Health System. As Joplin's largest employer, they cut checks for more than 4,000 employees. Jonathan Scales works for Adviant, a human resource consulting company, and says the changes will add up over time.
"For someone that makes $50,000 per year, that's about $1,000 per year in social security tax that they did not pay last year and that will be about $38 a paycheck if they're paid every 2 weeks. Now, someone who makes $30,000 per year, that increase will be about $600 every year in SS tax or about $23 check every 2 weeks," states Jonathan Scales, Adviant Human Resources.
Even with lower paychecks, minimum wage workers and part-time college students are no exception to the financial pinch.
"That's not good. I would like to have that 2% to go back for gas or food, but I'll take a little hit when it comes down to it," states Hirshey.
Scales says it's nothing new.
"Taking it back up to 6.2% is going back to what we were used to paying and it just goes to fund SS a little bit more than what we were doing in the past," says Scales.
The tax cuts were first implemented in 2010 as part of President Obama's economic stimulus plan but expired on December 31st.
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