I just received the first paycheck of the year and it is slightly less than what it used to be… maybe it is my 401k contribution increase or the fiscal cliff screwing us!
Payroll tax is 2% higher now. Usually the employer and employee split the costs, so you might see about 1% lower on the first 90K or 100K or wherever the cutoff is for payroll income.
Your health plan also probably became slightly more expensive, so they withheld a bit more.
The payroll tax is definitely at least partly to blame. There are a lot of things that might be contributing as well. My last few checks of the year are always much higher than my first check of the year, compensation changes notwithstanding. A few things that impact it: payroll tax cap and now return to normal level, 401(k) contribution cap hit in fall, and unemployment and disability taxes (if your state has them) also have caps. As ohai said, if your HC premiums went up you’ll get hit there too. I haven’t received my first check yet, but it will be a lot less than my 12/31/12 check.
And I have to go back to paying social security. That’s a good investment.
Is it really that dfficult to compare your last paycheck of 2012 to your first paycheck of 2013? You guys are “analysts” aren’t you?
And bchadwick the employee is paying the full 2% up to 113,700.
Yep. The employer pays the same amount as the payroll tax cut didn’t apply to the employer portion.
There is no comparison between my last paycheck of 2012 and my first paycheck of 2013. By the last check of the year, all the following have disappeared for me: OASDI (Social Security), 401(k) contribution (I usually hit the max late Nov or early Dec), state unemployment, state disability, and state family leave. It’s further complicated by the fact that my company does raises effective 4/1, not 1/1. That being said, I’m more than able to “analyze” the changes in my net it’s just not as simple as comparing 12/31 to 1/15.
Wait, what discount rate am I suppose to use? I got a negative NPV. I guess I should just quit.
I’m sick of paying for obama phones and granny’s medical care. But I guess I’ll keep going to work so I don’t get bored doing nothing.
I see a lot of small blips in the locker room compared to my blimpie.
#Troof
When in doubt, use the 20 year coupon STRIPS rate.
yeah, I hear you brah I switched jobs in the Fall so I get hit for everything. CA also gets you for a 1% disability up to ~100k as well. So take a look at a check after 4/1 when you where getting hit for everything. Is it really that difficult?
me:
6% SS
3% medicare
20% fed
8% state
4% nyc
8% 401k
net takehome ~ 52%
My net take-home is slightly higher, though much of this difference is explainable by my contributing less to 401(k).
That’s gross. My net take home is 75%. Hooray for no state/city tax. I also don’t contribute much to my 401k because of my employers sh*t match and investment options.
No, that’s net.
But I agree–yay for no state income tax or local tax. Sucks that my property tax rendition is 2.5% of my property values.
Blake has successfully called out 12 of the last 3 idiots.
They’ve done studies, you know. 60% of the time, he’s right everytime.
All my state stuff is paid by 4/1 (other than state income tax of course). As noted before though, not overly difficult but also not as simple as comparing one check to another.