Wednesday, January 23, 2013

Has Anyone Else Noticed A Significant Decrease In Their Paycheck In January 2013?

Opening our paychecks this month shocked me.   I couldn't believe how much less money our paycheck came out to.  I did a little research by taking a December 2012 pay stub out and comparing it with the new pay stub and here is what I found.

It looks like a new tax withholding is taking more money from us.  Everything else on our pay stub was the same.  The new tax withholding is called FED OASDI EE.  This stands for Old-Age, Survivors, and Disability Insurance/Employee share.  Here is an article you can read to find out more.  Essentially, it is a tax that withholds money from your paycheck and puts it into your Federal Social Security Account.  

Your employer makes a matching contribution. For the 2009 calendar year, the tax applies to your earnings up to a limit of $106,800. You pay 6.2 percent (the deduction you see on your paycheck), and your employer pays 6.2 percent, for a total of 12.4 percent.

Has anyone else noticed a big difference on their paycheck this year?  Please let me know if you have and what you think about this.  I was just wondering if this was something new because I have never since it on any of our past pay stubs.

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