What Does Expiration of Payroll Tax Holiday Mean to Workers

01/11/2013

The American Tax Relief Act recently enacted by Congress and signed by President Obama did not extend the payroll tax holiday that has been in effect in previous years.  So what does that mean to people who are getting a paycheck.  Well, it generally means you will see your taxes go up and your take home pay go down.  By some estimates, I have heard that monthly paychecks for those earning $113,700 or more annually will decrease by upwards to $200.  Therefore, people need to plan accordingly.