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

[kyomagi]

Since it came up earlier in this thread, is there some specific way to prepare for the PPACA? Somebody said to just wait until the Obamacare taxes. I didn't think that was exactly a tax so much as you have to buy a policy if you don't have one. So if you have insurance, not really any prep to do, right?

its considered a tax by one group of people, only because the justice said it can stand as a tax. I guess he found the greater good in the law rather than striking it down out right.

But its a penalty for not having insurance. It seems its cheaper to charge someone a penalty for not having insurance than having the rest of us taxpayers foot the bill for someone going to the ER and not paying the bill.

You have a choice here, buy health insurance or pay a penalty, you dont have a choice in taxes

If you have insurance, there will be no tax from what i understand of the bill.



As far as the payroll tax goes, it only knocked off about $60 a month for us, which is nothing.

Young, married and own a home. gotta love it lol

 

[Marionnette]

Since it came up earlier in this thread, is there some specific way to prepare for the PPACA? Somebody said to just wait until the Obamacare taxes. I didn't think that was exactly a tax so much as you have to buy a policy if you don't have one. So if you have insurance, not really any prep to do, right?

Much depends on whether your current coverage meets the standards set forth in the law. If it doesn't provide you with the minimum level of coverage as dictated by the law, it won't count and you will need to purchase a policy that does. If you get your coverage through your employer, they will need to offer you a selection of healthcare plans that meet the specifics of the law or else pay a penalty (or is it a tax?).

We were notified last month that the current policy that we offer at our business will not be available when it comes time to renew. A similar policy will cost 19% more than the one we have now. Our employees will not be able to afford the cost increase and since we are not large enough to fall under the law that requires employers to provide coverage, we will not be offering health insurance as a part of their benefits package.

 

[mks18412]

Since it came up earlier in this thread, is there some specific way to prepare for the PPACA? Somebody said to just wait until the Obamacare taxes. I didn't think that was exactly a tax so much as you have to buy a policy if you don't have one. So if you have insurance, not really any prep to do, right?

I did read about an additional fee of $63 per person (1st yr) in the family. Then it goes down to $4x. the 2nd yr is $2x. for the 3rd yr. I think this "fee" goes towards the people that have a preexisting condition. Everyone pays it or those that have jobs pay it.

 

[joedplumber]

I know a few folks who wanted to spend the 2% tax holiday money when they got it so they increased their federal withholding to get a larger tax refund and spent it that way. Now they lowered their withholding so they won't get a big refund in 2014 but there weekly pay has stayed flat.

 

[punkin]

We just got DH's first 2013 pay stub and frankly, the difference in withholding is minimal...now the increase in our health insurance this year IS significant.

 

[vacationer1954]

Since it came up earlier in this thread, is there some specific way to prepare for the PPACA? Somebody said to just wait until the Obamacare taxes. I didn't think that was exactly a tax so much as you have to buy a policy if you don't have one. So if you have insurance, not really any prep to do, right?

I think there is a tax portion of it on high earners at least for now to pay for the subsidies for poor people. I'm not paying it so I guess we're not high earners. If you don't have insurance through work and buy it through the ACA, then you still probably have to pay something for the insurance. The subsidies are supposed to be just partial subsidies unless you are very poor so you'll still need to pay your share for the insurance. There is also the penalty for people who don't carry insurance. The court decided that was a tax too.

 

[Debbie7452]

Most of our employees opt out of the coverage we offer and we have a variety of plan choices and we pay half for them, but they say they still can't afford it. I honestly don't know how they are going to manage. They just aren't used to budgeting for insurance.

Does anyone know if the news law bans "age-rating" of insurance? Our plan is age rated and goes up as you get older. We didn't choose that, our very small company is getting insurance through a larger consortium to try to keep the rates down.

 

[joedplumber]

I probably should be kissing my employers feet. I currently have for 2013 a family copay plan that the employer fully pays for.

 

[vacationer1954]

Does anyone know if the news law bans "age-rating" of insurance? Our plan is age rated and goes up as you get older. We didn't choose that, our very small company is getting insurance through a larger consortium to try to keep the rates down.

This is from back in March 2010: "The Patient Protection and Affordable Care Act will limit age rating to 3:1 for premiums which means that someone who is 55 years old will pay a maximum of three times what someone who is 25 years old would pay." I don't know if the rules changed after that before the law was passed.

 

[bookgirl]

Not cutting back anything. My cost of living increase started on the same paycheck as the tax reverting back to it's old level. The tax rate was about 2% my COL increase was 3%.


While it's a bummer I don't have a problem with it. Everyone is supposed to pay in, that's my share so that's what I pay.


What may change is that I've been getting money back at tax time (since I didn't adjust my withholding when we got the break) and I think my figures will be closer on the mark this year. I might even pay in.

 

[knewton64]

We're losing about $200 a month. Trying to figure out where I'll cut. Unfortunately, vacation/entertainment funding seems to be the first on the chopping block . Thankful that we have "fluff" to cut out of our budget. I'm feeling for those who don't right now . --Katie

1) That I was able to pay 15 months AHEAD on my home mortgage.
(along with a lot of hard work these last 2 yrs at my job)

2) Increase my 401K 4% as well (from 12%).
3) Place the equivalent of 1% of it in my savings account; thus preparing for when it goes away.



So what am I 'cutting out'?


1) Not being able to pay AHEAD as much on my house mortgage (have 6 yrs now left to pay on it & its MINE).
2) deleting 1% out of the additional 4% contributions from my 401K that I have been making these last 2 yrs.
3) taking .05% out of the 2% and NOT putting it into my savings account monthly that I have been doing these last 2 yrs.
(Take note how these 3 are discretionary and not inputted as part of my primary monthly budgeting plans)



Now I am STILL working hard as ever in my profession - in the hotel hospitality industry (now if I could just "cut" that out !!)




So
now that the SS tax is now gone, I reply, "If you want something done and done right, work ahead and you WILL reap the rewards while others who screech at the 'injustice' being done (the SS tax now restored) will be left FAR behind.





T.T.F.N.

 

[nunzia]

Much depends on whether your current coverage meets the standards set forth in the law. If it doesn't provide you with the minimum level of coverage as dictated by the law, it won't count and you will need to purchase a policy that does. If you get your coverage through your employer, they will need to offer you a selection of healthcare plans that meet the specifics of the law or else pay a penalty (or is it a tax?).

We were notified last month that the current policy that we offer at our business will not be available when it comes time to renew. A similar policy will cost 19% more than the one we have now. Our employees will not be able to afford the cost increase and since we are not large enough to fall under the law that requires employers to provide coverage, we will not be offering health insurance as a part of their benefits package.

..and here we go...
What is funny is we will still have tons of uninsured and a huge mess to deal with. It is much cheaper for young people to just pay the penalty..and still go to emergency rooms, get indigent care, etc then to get insurance. My DH works for a company that has well under the 30 that 'have' to have insurance (although I know tons of big companies were granted 'temporary' waivers..we'll see how that plays out)..so we have always had to get our own care or go without. We have a large deductible plan and I sure hope that one fits in the new rules since it has worked well for us. My DH works as a vet tech and his boss has had his insurance through the AVMA forever..they have announced that they will no longer be offering health insurance because of the regulations and hassle. He has existing conditions so it is quite a challenge now for him to find a new plan.

 

[Riles_and_Gabe]

If you've been on this board for any amount of time, you realize that nearly everyone here: 1) Has 100K in savings 2) Has NO debt, not even a car or a house 3)Has fully funded retirement and college savings accounts and 4) Has the financial memory of an elephant . I just roll with it . Many people who see this thread are probably embarrassed to admit they didn't know it was coming.

For us it went something like this: "Crud, we're going to be getting less money. Oh yeah, there was that holiday thingie like 2 years ago ." I imagine it was the same way for the majority of the population, except for people willing to post on this thread!! --Katie

I completely agree with you. Thank you for saying this because I was starting to feel really bad about myself .

 

[lizbaby007]

DH (as well as everyone else at his work) received a pay raise of close to 3% starting Jan 1st. We were thrilled until we realized that it will basically just cover what he will be losing. We are very thankful for the pay increase, it just stinks we won't really get to "see" it. Sure does beat bringing home a smaller paycheck though.

 

[Natalie's Mommy]

my husband got a 2% raise in august, and we used that money to pay for my duaghters monthly dance budget. we will now rework the budget and find that money elsewhere, less grocery budget or fast food most likley. It sucks because we lose about $200 a month and it hurts, but we can adjust!

 

[DawnM]

Oh, I was told! It doesn't mean I listened! At 25 retirement seemed like lightyears away. I was single and having a lot of fun traveling and enjoying life. I was also in grad school.



Thankfully, my employer had mandatory retirement savings of 16% with their match. But I didn't save a whole lot on top of that!

Dawn

ITA

I wish I was told some of the stuff at 25 that I know now. I would be retired rather than still working.

 

[DawnM]

I feel like we are doing well with handling what we have. We do not have car or other loans but we do have a mortgage.

The only reason I was well aware of the SS tax coming back is because I am married to a tax accountant who has talked about it for over a year.

We are budgeters though. If there is a way to do it for less, I will find it!

We are also savers.

Dawn

If you've been on this board for any amount of time, you realize that nearly everyone here: 1) Has 100K in savings 2) Has NO debt, not even a car or a house 3)Has fully funded retirement and college savings accounts and 4) Has the financial memory of an elephant . I just roll with it . Many people who see this thread are probably embarrassed to admit they didn't know it was coming.

For us it went something like this: "Crud, we're going to be getting less money. Oh yeah, there was that holiday thingie like 2 years ago ." I imagine it was the same way for the majority of the population, except for people willing to post on this thread!! --Katie

 

[punkin]

Oh, I was told! It doesn't mean I listened! At 25 retirement seemed like lightyears away. I was single and having a lot of fun traveling and enjoying life. I was also in grad school.



Thankfully, my employer had mandatory retirement savings of 16% with their match. But I didn't save a whole lot on top of that!

Dawn

Actually, if you start at 25, 16% for retirement is an excellent savings rate. I am envious. When I was 25, I was frittering away every penny I made and DH thought that as long as there are checks in the checkbook, he could write a check.

We've gotten better over the years. Our retirement savings currently(we are 45 and 46), including match, are about 16%m but DH will also have a SMALL pension, so we should be fine with that.

 

[DawnM]

I started at 22, right out of college, but I only worked 16 years. I am currently a SAHM.

Actually, if you start at 25, 16% for retirement is an excellent savings rate. I am envious. When I was 25, I was frittering away every penny I made and DH thought that as long as there are checks in the checkbook, he could write a check.

We've gotten better over the years. Our retirement savings currently(we are 45 and 46), including match, are about 16%m but DH will also have a SMALL pension, so we should be fine with that.

 

[joedplumber]

Unfortunately I don't' see a retirement for me or my wife at all. I foresee a semi-retirement for us.