New Potential Payroll amounts in 2013

This week over at 4nannytaxes, indicated that the Payroll Tax Holiday will most likely not be extended for 2013.  What does this mean to a nanny’s paycheck?  I asked Kathy Webb, our NannyFusion member and owner of 4nannytaxes to explain:

In Dec 2010 Congress passed a ‘temporary’ one year payroll tax holiday, reducing the worker’s contribution to Social Security by 2%. It was extended until Dec. 2012 and all indications are it will not be renewed.

So a nanny who is paid $500 a week will likely have $10 more deducted from her paycheck starting in January.

Kathy will be keeping a close eye on this as the end of year approaches.   Make sure you receive their blog post emails (on the right side is subscribe area) and like them on Facebook for more up to date information.  She will let us know as well when and if a definite answer is made by Congress.

We shared recently what FICA is. To review the article please visit:

Do you know FICA?

To read the New York Times article please visit:

Payroll Tax Cut Is Unlikely to Survive Into Next Year

Here is a video that shares what this means to the economy:

Hit To Economy If Tax Policies Expire  from the New York Times, September 30, 2012