Richard A. Lindsey, CPA Lindsey & Waldo, LLC – Certified Public Accountants
  • The End of a Tax Holiday Will Mean Less Money In Your Pocket

    Filed under Informational, Taxes
    Dec 14

    Your paycheck is going DOWN! One might be wondering, DEMANDING some explanation for the reason of less money in his or her pocket. As an employee you should know that since 2010, your share of Medicare tax has been reduced from 6.2 to 4.2%. Medicare is what forms the basis of the Federal Social Security Program, which provides monthly income to recipients (based on the recipient’s contributions made during his or her employment period). This tax reduction (tax holiday) is scheduled to expire after December 31, 2012.  Therefore starting January 1, 2013, as an employee, your share of Medicare tax will return to 6.2 percent. Although this won’t increase your income taxes, it will definitely result in less money in YOUR pocket!

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