What are you cutting in your budget to absorb the Payroll Tax increase?

Discussion in 'Budget Board' started by ekatiel, Jan 3, 2013.

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  1. bigsis1970

    bigsis1970 Always planning my next trip! Maybe my 45th Bday??

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    Well it seems I am coming on late and am not really sure if anyone on here is talking about this still or not but my husband and I just barely make over the 50K and are losing about $120 per month on a tight budget to begin with. I just decided to scrap the 2013 Disney plan because I very much want to stay on track with paying off our CC's -- 4 CC and my hubs student loan this year (which was in jepordy becauce both vechiles went on the fritz right at the beginning of the new year as well as we had frozen pipes - but thankfully no damage just need to replace the wiring to our outleft for our heat tape) I live in Maine so we have the expense with KI/Oil but have a mobile home so it's nothing huge to heat. I have a DD in college and 10th grader so I have some children related expense but DD is paying her own way (or will be once the loans roll in) We have started cooking at home more from scratch / eating in vs. out .. while it was meant to be a holiday we did use it for income so now we just will revert back to our more frugal ways.. I do not feel like this will make us "poor" it will just be a little cramp till we figure it out again.. Best of luck to everyone :)
     
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  3. eliza61

    eliza61 http://www.wdwinfo.com/dis-sponsor/images

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    never mind. old argument,not going to play
     
  4. eliza61

    eliza61 http://www.wdwinfo.com/dis-sponsor/images

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    So of course you naturally assumed she went out and had a fancy manicure? How do you know how she paid for it, maybe some one gave her a treat, maybe she did them herself? maybe she went to the local beauty school and got them done for 2 bucks (what I do).

    Oh yes, she must be a welfare queen living the high life.

    I am always amazed how many people on the dis, c heck out how folks pay for the groceries. I don't get that up, close and personal.
     
  5. mdsoccermom

    mdsoccermom DIS Veteran

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    And I always wonder how poor someone on assistance is supposed to look and exactly what kind of car they are supposed to drive.
     
  6. Muushka

    Muushka <font color=red>I usually feel like I just stepped

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    Oh come on E, I find that very hard to believe!
     
  7. Muushka

    Muushka <font color=red>I usually feel like I just stepped

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    See! :thumbsup2

    Happy New Year, E :goodvibes
     
  8. joedplumber

    joedplumber Love Vacationing!

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    Hey!

    I thought we are suppose to be discussing what folks will be cutting in their household budgets to off set the ending of the 2% tax holiday. :confused3
     
  9. eliza61

    eliza61 http://www.wdwinfo.com/dis-sponsor/images

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    LOL. I'm getting so old and predictable!!

    Your right Joe,
    My apologies for my soap box.
     
  10. disney4us2002

    disney4us2002 Tagless by choice!!

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    I see things have gotten a bit off track but I'm kinda stumped as to why my dh's biweekly paystub shows his FICA withholding went from $80 to $426. That is quite a bit more than 2% and $700 is a hell of a lot of money to lose per month!!!!!!!! I thought we (USA) weren't going over the fiscal cliff but it feels like I'm standing on the ledge.

    Anybody else seeing this kind of difference? Maybe his finance dept made a mistake?
     
  11. ekatiel

    ekatiel DIS Veteran

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    That is a chunk of change!!! I would contact payroll and find out what happened. --Katie
     
  12. crisi

    crisi DIS Veteran

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    I'm so glad so many of you have woken up to "everyone should pay their own way." Next time there is a thread on how little financial aid is available, how unreasonable the EFC is, and how can college possibly be so expensive, I'll take down names from this thread to tell you that you need to pay your own way. Because what I'm sick and tired of is not paying so someone can get $4 a day in food stamps while they have a manicure, but subsidizing the college educations of people who can afford trips to Disney while they whine about someone needing SNAP.
     
  13. mks18412

    mks18412 Mouseketeer

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    All of DH withholdings increased SS, medicare, federal and state.
     
  14. donaldlovesdaisy

    donaldlovesdaisy DIS Veteran

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    Same here I guess we aren't the middle class the talked about not being affected!
     
  15. Granny square

    Granny square Always planning a trip!

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    Exactly. And it was paid for by everyone just as the schools now.
     
  16. MomToOne

    MomToOne DIS Veteran

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    If you maxed out the FICA withholding at the end of last year ($4,624.20 so after you earned $110,100), this is possible. You would have returned to the normal 6.2% withholding at the beginning of this year and it would be in place until you maxed out again ($7,049.40, so after you earn $113,700 in 2013).

    If that's not what's going on, then contact HR or whoever is responsible for paychecks.

    If your Medicare increased, there should have been an increase in salary or other income on the check (bonus, etc.). Or you decreased the amount you put into your FSA/other similiar pre-tax account, or your health premiums decreased. If none of these are the case, contact HR.
     
  17. vacationer1954

    vacationer1954 DIS Veteran

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    So as you hit the limit the last paycheck will show a much smaller amount of tax than usual to bring you up to the maximum. If you really want to compare this year to last year you need to compare the new paycheck to the paycheck before the one with the very small tax amount.
     
  18. nunzia

    nunzia You can't top pigs with pigs, but you CAN top Toys

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    It looks like our return to the normal rates will cut our take home by about 120 a month. DH had gotten a small raise in November of last year so that will help equalize..I got nothing for the third straight year, but they may have decided not to raise the medical portion I pay because that wasn't changed. We sock away as much as possible in savings and will continue to do so. Didn't need it to live on, didn't change how we lived, so really not much impact.
     
  19. rockawaybeachgirl

    rockawaybeachgirl Mouseketeer

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    I love this post. It reminds me of lots of people where I live who were affected by Sandy. Pre- Sandy they were all 'no government handouts' and 'every able-bodied adult should fend for themselves'. But boy did they take that FEMA money no problem!
     
  20. mks18412

    mks18412 Mouseketeer

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    A lot of those "abled bodies" have paid insurance for years trying to be a responsible homeowners or renters just to be told you are not covered. There will be lots of people who get nothing from the FEMA bc they had insurance.
     
  21. leahjade

    leahjade DIS Veteran

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    I can only speak for my family, but we paid our kids' ways through college without using financial aid and have saved enough in our 401k to support ourselves through retirement. And believe me after we have lived all our lives in our home with very expensive school taxes, we will have more than paid for our kids' public school educations.
    We are strictly middle class people but I can't imagine doing it any other way. I know it's old fashioned and not popular in this day and age to live within your means and pay your own way, but I just don't understand the mindset of having the government (which means other families are having to pay for you) support you from cradle to grave.
     
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