Board 8 > Anyone else discover that their paychecks are lower now?

(+) Yeah! (+)

Despite getting a raise at the end of the year, my paycheck is now less than it was previously because of a change in payroll taxes. I suggest everyone with direct deposit take a look and compare to their previous statement as well.

For some reason I don't see anyone else talking about this on the internet.

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FICA always goes up every year so combined with inflation, if you're not getting at least a ~6% raise every year, you'll lose money. Not really surprising.

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foolm0r0n posted...

FICA always goes up every year so combined with inflation, if you're not getting at least a ~6% raise every year, you'll lose money. Not really surprising.

I received more than a 6% raise and still had a lower paycheck. I also do not think it's true that it increases yearly--I don't remember this happening last year, nor do I remember other co-workers being this confused and angry.

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Apparently the maximum SS contribution increased in 2020, so paychecks will be lower until you hit the cap.

I hate the god damn government.

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The maximum goes up every year at a rate that is indexed to something similar to salary budget increases.

Just be glad there is a maximum at all!
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KingButz posted...

The maximum goes up every year at a rate that is indexed to something similar to salary budget increases.

Just be glad there is a maximum at all!

Yikes

I think I had initial sticker shock this year because I put my wife on my insurance, so the discrepancy at the reset was way starker.

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the maximum contribution to SS rule doesn't really make sense to me, but your paycheck will probably increase partway through the year
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Taxation is theft!!!

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Oh ok cool wasnt just me

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Nelson_Mandela posted...

Taxation is theft!!!

It really is... like why do I have to give the government 8.25% of almost all money I spend when they already steal money from every paycheck???

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I discovered my paychecks are gone cause I got laid off in November

I think that qualifies as lower

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We've gone to mandatory weekends, every weekend in the new year.

So mine is higher, but at what cost?
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Another victim of the Trump tax cuts!

Mostly joking but since youre in NY it might actually be true if you benefited enough from SALT

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There is no way this has anything to do with Social Security. The maximum limit went up, but the rate is fixed.

What state are in you in? Although I can't see any state adjustments causing you to get a 6% raise and have your paycheck go down.

Either your medical premiums or 401k contribution percentage (or another paycheck withholding) went up significantly, or your filing status on your W-4 was changed. Or your employer screwed up somewhere, so talk to your payroll department.

I really hate being forced to pay into a system that isnt gonna be around when/if I get old enough to use it

ffmasterjose posted...

I really hate being forced to pay into a system that isnt gonna be around when/if I get old enough to use it

You might not get back what you put in, but itll still be around.

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Dont they also keep raising the retirement age tho? Shits gonna be like 75 to retire by the time I get there.

Is this just a stealth "I'm making six figs" topic

That's the only reason you'd notice the FICA change

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ITT: guy makes over $130k a year but still doesn't know how the FICA tax works

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Aww poor sephie

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sephyg: i love trump
also sephyg: i hate the god damn government

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GoldSlime35 posted...

There is no way this has anything to do with Social Security. The maximum limit went up, but the rate is fixed.

That's literally raising it (unless you're below the limit)

How is this so hard to understand?

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So the way it works is you pay OASDI until your taxable wages reach the limit, and then the rest of the year you don't. So if you reach 137.7k in September, then your paycheck will increase for the rest of the year.
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foolm0r0n posted...

That's literally raising it (unless you're below the limit)

How is this so hard to understand?

Social Security is still 6.2%, it just phases out at a higher number.

The only way he could notice this in January is if he's already made 130K this month. Even if he did, his next paycheck would go up drastically.

He would notice it now because in December he wasn't paying OASDI and now in January he is. But that doesn't have anything to do with the limit changing. Anyone making more than 133k would notice.
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True, but it it sounded more like he had the same paycheck amount every week last year. In that case, it would happen every year in January

GoldSlime35 posted...

True, but it it sounded more like he had the same paycheck amount every week last year. In that case, it would happen every year in January

It did happen last year and the years before. This year just happened to coincide with a large raise last month, so the discrepancy was way more.

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