It's official. The amount deducted from your paycheck for social security will be reduced from 6.2% to 4.2%. Obviously, this is a good thing for your paycheck. I'm not so sure how it is good for the social security program.
For us, that is about $115 more per month. My husband's basic military pay will also increase by 1.4% in the new year. It's a lower raise than in the past, however, we are grateful for any raise at all. Not everyone is so lucky.
I will be working on figuring out how our pay will change in the new year. Once I know the dollar change, I need to figure out how to allocate it to meet our goals in the next year. I like that!
What plans do you have for your social security tax savings?
Social Secuity Payroll Tax Reduced
December 18th, 2010 at 03:21 pm
December 18th, 2010 at 04:26 pm 1292689591
December 18th, 2010 at 04:39 pm 1292690397
According to what I read, the reduction won't affect any future payments to be paid out.
So, since my husband is self-employed, he will pay both. The only reduction will be on our side as employees.
December 19th, 2010 at 01:43 am 1292722999
December 19th, 2010 at 10:11 pm 1292796670
1) set aside for a trip I am taking in June
2) put more into savings for unexpected expenses, car account, and house account
3) pay down debts
I don't know the amounts or exactly how to divide it up right now, but my priorities will be the trip and the car account. With my reimbursement from my work trip, I can pay off a lot of debt and put more into savings.