Payroll Tax Cut Lapses for 2013

January 3rd, 2013 by JBWK

As part of the so-called “fiscal cliff” deal Congress hammered out this week, the 2% payroll-tax cut will lapse.

The tax cut, which was only temporary, reduced the employee share of Social Security withholding from 6.2% to 4.2%. Now that it has expired, the employee portion will switch back to 6.2%, meaning employees will take home a bit less in each paycheck than they’re used to.

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