The Fiscal Cliff and Your Paycheck: What to Look For
The 'Fiscal Cliff' deal has broad effects on everyone, but it really hits home when it comes to your paycheck. What will be most noticeable for many is the 2% payroll tax increase. For an individual making around $50,000 a year, that means about an additional $800 a year taken out in taxes.
Another result of the last minute deal is paychecks for many will be off the first couple weeks because the people who input rates into accounting software won't have enough time to make adjustments.
There's really not too much you can do about it. If your coming paychecks are a little off, the folks in payroll should make adjustments as weeks go on to make sure you're paying the right amount.
"It's just a matter of each individual company, some will probably be very fast, some a little bit slower," said Phyllis Burdette, a Certified Public Accountant with Burdette Knoll, LLC. "But I would imagine that by the middle of January we're going to be okay on that issue."
Some of the laws passed Tuesday are only temporary and are likely to change again in a few months.