What the 2011 tax changes mean to your paycheck

Well to make it easy the Social Security tax rate has been cut on the first 106K that you make, it went from 6.2% to 4.2%, breaking it down, that means for every 1K you make, you will see an extra $20. These changes should be seen by the 3rd paycheck, and any monies missed will be made up by your 6th check.

The article said that we won’t see any difference in our future social security benefits. So my next question is, what happens to that famous 2040 date that SS benefits are supposed to surpass what is being paid in? With this drop in the SS tax rate, there is less money being paid in, hence the date needs to be moved up to maybe, 2037, 2035? Ugg, somehow I don’t see this working out.

For the full article you can use the following link.

http://money.cnn.com/2010/12/17/pf/taxes/tax_cut_deal_janpaychecks/?hpt=P1&iref=NS1

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~ by debt2dreams on December 18, 2010.

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