How the Fiscal Cliff Agreement Affects Your Paycheck - KTVN Channel 2 - Reno Tahoe News Weather, Video -

How the Fiscal Cliff Agreement Affects Your Paycheck

Posted: Updated:

Your tax rates are not going up under the Fiscal Cliff agreement. But your paychecks will be smaller, starting with your next paycheck.

That's because the two-year-old payroll tax holiday is over so the rate going from 4.2% back up to 6.2%.

Here's how it affects your bottom line:

If you're making $30,000 a year, you'll pay about $50 more a month in taxes.

If you're earning $50,000 a year, you'll contribute about $83 more a month.

And if you make $113,700 a year, you'll pay an extra $189.50 a month in taxes.

The payroll tax, by the way, funds Social Security.

The lower rate was costing the government $120-billion in tax revenue a year.

  • Today's Top StoriesMore>>

  • Fatal Rollover on Highway 50

    Fatal Rollover on Highway 50

    Monday, September 1 2014 2:45 PM EDT2014-09-01 18:45:19 GMT
    82-year-old Dayton woman is dead after a vehicle rolled over on US 50 in Carson City.More >>
    82-year-old Dayton woman is dead after a vehicle rolled over on US 50 in Carson City.More >>
  • Reno Police Shoot Robbery Suspect

    Reno Police Shoot Robbery Suspect

    Monday, September 1 2014 2:58 AM EDT2014-09-01 06:58:19 GMT
    Multiple agencies are investigating after an armed robbery suspect was shot and killed by police in front of a Reno casino Sunday evening. More >>
    Multiple agencies are investigating after an armed robbery suspect was shot and killed by police in front of a Reno casino Sunday evening. More >>
  • Aces Win to Force Winner Take All Game on Labor Day

    Aces Win to Force Winner Take All Game on Labor Day

    Monday, September 1 2014 2:09 AM EDT2014-09-01 06:09:23 GMT
    The Reno Aces used a pair of home runs and a dominant relief performance by Bo Schultz to grab a decisive 7-3 win over the Sacramento River Cats Sunday night at Raley Field.More >>
    The Reno Aces used a pair of home runs and a dominant relief performance by Bo Schultz to grab a decisive 7-3 win over the Sacramento River Cats Sunday night at Raley Field.
    More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and Sarkes Tarzian, Inc. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.