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If you've received your first paycheck for 2013, you're probably steamed that your take-home pay was a little short. The fiscal cliff deal passed by Congress and signed by President Obama ended the temporary reduction in FICA tax—the tax that feeds the Social Security Trust Fund. As of January 1, there is a 12.5 percent tax on all earned income up to $110,000, which will be split evenly between the employer and the employee. That means that most of us saw a 2 percent tax increase in our most recent paycheck.
For someone earning $50,000 a year, that's a $1,000 tax increase—or $83 a month they won't have available to spend or save.
For someone earning $50,000 a year, that's a $1,000 tax increase—or $83 a month they won't have available to spend or save.