Announce in AM to my Folks less $$ in paycheck

[Karee 4,189]

This is what they came back with:

Increase in FICA tax rate impacted your Jan. 7, 2013, paycheck

The two percent FICA (Social Security) tax cut implemented for 2011 and extended for 2012 expired Dec. 31. As a result, the FICA tax rate was restored to 7.65 percent (social security 6.2% + Medicare 1.45%), effective Jan. 1, 2013. Jan. 7th, 2013, paychecks reflected the 7.65 percent FICA tax rate.

As Congress continues to discuss “fiscal cliff” issues (which include the end of the FICA tax cut), we will monitor decisions related to payroll taxes. Should Congress extend the current FICA tax rate for 2013, adjustments, including refunding FICA tax, if necessary, will be made in future paychecks.

Still seems fishy to me. Why would I pay a higher tax rate on money that I earned in December, even though it was paid to me in January?

[JensJrny2Ray 367]

I agree; it should be for money earned in January on.

[Karee 4,189]

I agree; it should be for money earned in January on.

Yeah I'm still digging around. I don't care as long as I know that money went to the govt. (Can't believe I just said that), instead of going into this company's pockets.

[Karee 4,189]

So I did some digging around. Apparently the tax rate when the money changes hands is what matters, not when the money is actually earned. Looks like they did it the right way.