Tightening your belt?

Happy New Year!! Did you notice your paycheck got smaller this week?

 

On January 3rd - just 5 days ago - the IRS released updated income-tax withholding tables fro 2013 reflecting this week’s changes by Congress.

 

Employers are now required to begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point tax cut in effect for 2011 and 2012.

 

Isn’t it interesting how we got used to that extra 2% in our pockets? Now we have to get “un” used to it.

 

Your employer will handle the withholding changes so you don’t need to fill out a new W-4 form.

 

As always, however, the IRS recommends that you review your withholding every year and, if necessary, fill out a new W-4 and give it to your employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

 

Time to tighten the belt... again.