Any change to your 2013 paycheck?
Any change to your 2013 paycheck?
I received my first paycheck of 2013 today (1/3).
But, I didn't see any major change.
Maybe the payroll department and IT didn't have enough time to make all the programming changes after the New Year.
But, I didn't see any major change.
Maybe the payroll department and IT didn't have enough time to make all the programming changes after the New Year.
Re: Any change to your 2013 paycheck?
Yep, my FICA went up 2%. Looks like my boss used 2012 wh tables, which is allowed.
When he uses 2013 tables, I expect a small increase since the brackets expand for inflation.
When he uses 2013 tables, I expect a small increase since the brackets expand for inflation.
Re: Any change to your 2013 paycheck?
Actually, comparing to my 1st paycheck from 2012, my holdings went up a lot:
Fed withholding increased by 10.56%
Fed Medicare increased by 1.58%
FICA increased by 49.95% <== hope this will go back down on the next paycheck.
CA withholding increased by 15.58%
Fed withholding increased by 10.56%
Fed Medicare increased by 1.58%
FICA increased by 49.95% <== hope this will go back down on the next paycheck.
CA withholding increased by 15.58%
Re: Any change to your 2013 paycheck?
On 12/31 the IRS released the withholding tables based on the premise Congress would not act in "time",
and the tables reflect the end of the Bush tax cuts.
Since the president signed the Congress new bill on 1/2, the IRS released the "new" withholding tables that reflect the new law on 1/3/13.
It is likely your employer changed the tax tables reflecting the 12/31 notice (IRS notice 1036).
The employer should revise their tax tables reflecting the 1/3/13 new tables for your next check.
Unfortunately the nearly 50% increase in FICA is accurate. The rate is now 6.2% compared to 4.2% it has been for the past 2 years, which was known as the payroll tax holiday. The change is 2% of your pay but the amount appears to be a 50% increase since 2% is virtually 50% of the previous 4.2% rate.
and the tables reflect the end of the Bush tax cuts.
Since the president signed the Congress new bill on 1/2, the IRS released the "new" withholding tables that reflect the new law on 1/3/13.
It is likely your employer changed the tax tables reflecting the 12/31 notice (IRS notice 1036).
The employer should revise their tax tables reflecting the 1/3/13 new tables for your next check.
Unfortunately the nearly 50% increase in FICA is accurate. The rate is now 6.2% compared to 4.2% it has been for the past 2 years, which was known as the payroll tax holiday. The change is 2% of your pay but the amount appears to be a 50% increase since 2% is virtually 50% of the previous 4.2% rate.
Re: Any change to your 2013 paycheck?
I can't find the reference, but I believe payroll departments were given a reprieve from rushing to implement. EIther by 1/31 or 2/28 I believe, which means for those of you not seeing changes yet, you will see them retroactive in the future.
Re: Any change to your 2013 paycheck?
Yep, FICA up 2% on my 1/1/13 paycheck. My take-home pay is now back to what it was 3 years ago at this time. But I did bump up my 401k contributions since then. If I'm lucky I'll get a 2% raise from Megacorp in April and that will help offset.
Re: Any change to your 2013 paycheck?
A "raise"? What's that?
Re: Any change to your 2013 paycheck?
That's when the boss puts blocks of wood under your desk legs.bicker wrote:A "raise"? What's that?
Re: Any change to your 2013 paycheck?
2% less here.
Re: Any change to your 2013 paycheck?
It's coming, guys, give it a couple of weeks. And it ain't going away. This will be the big so-far undiscussed point of 2013, essentially what does it do to discretionary income (everything from purchasing lottery tickets or buying a Dunkin' Donuts coffee every morning to funding your IRAs) when you tell everyone from approximately 100,000 a year on down they're missing a sizeable piece of their paycheck every payday.
Re: Any change to your 2013 paycheck?
I agree - it's about $145 less a month for me. Not a huge amount but it will make me think twice about every purchase that isn't essential and those occasional dinners at a nice restaurant. Plus, my wife & I started running last year and we will probably reconsider signing up for all those 5K and 10K races at $25-$30 each.wm631 wrote:It's coming, guys, give it a couple of weeks. And it ain't going away. This will be the big so-far undiscussed point of 2013, essentially what does it do to discretionary income (everything from purchasing lottery tickets or buying a Dunkin' Donuts coffee every morning to funding your IRAs) when you tell everyone from approximately 100,000 a year on down they're missing a sizeable piece of their paycheck every payday.
Re: Any change to your 2013 paycheck?
Hmmm... perhaps you don't follow the same news outlets as I do. I've been reading and hearing discussions about various possibilities, including some (going over the fiscal cliff) far worse than the reality, for weeks. So far, the best minds I've seen discuss something close to this scenario project moderate dampening of the expected growth for the year.wm631 wrote:so-far undiscussed
Re: Any change to your 2013 paycheck?
If I weren't retired, my FICA increase would be more than that. Say I make $120k a year, or $10k a month and get paid twice a month or $5k each paycheck. My last paycheck would have had 0% withheld for social security and 1.45% for medicare. My first check of 2013 would have 6.2 + 1.45 = 7.65% withheld. The increase from 1.45% to 7.65% is a 428% increase, not a 50% increase. Think big!Ace1 wrote: Unfortunately the nearly 50% increase in FICA is accurate.
Re: Any change to your 2013 paycheck?
My paycheck went up, technically, because I reduced my 401k contributions to 4% of income (enough for company match only) from 17% last year. Instead, I am maxing out my IRA, which comprises of lower expense ratio funds and index funds vs. my more expensive work 401k.
Still, subtracting that information, my paycheck otherwise has decreased about $15 per week, or about $65/month. I got a 3.5% raise in December to offset most of the FICA hit, but am still thinking of negotiating with my cable company for a lower bill or cancelling it all-together and just going with Netflix thru the summer months until football season comes again.
Still, subtracting that information, my paycheck otherwise has decreased about $15 per week, or about $65/month. I got a 3.5% raise in December to offset most of the FICA hit, but am still thinking of negotiating with my cable company for a lower bill or cancelling it all-together and just going with Netflix thru the summer months until football season comes again.
Re: Any change to your 2013 paycheck?
How do you get your company to pay the cable and Netflix out of your paycheck? Mine used to pay my life insurance, but never my cable.crowd79 wrote: Still, subtracting that information, my paycheck otherwise has decreased about $15 per week, or about $65/month. I got a 3.5% raise in December to offset most of the FICA hit, but am still thinking of negotiating with my cable company for a lower bill or cancelling it all-together and just going with Netflix thru the summer months until football season comes again.
Re: Any change to your 2013 paycheck?
Ha, I wish! I suppose I didn't word it correctly, thus confusing you. I am merely thinking of cutting cable, to offset the $15 lost per week from my paycheck, is all.sscritic wrote:How do you get your company to pay the cable and Netflix out of your paycheck? Mine used to pay my life insurance, but never my cable.crowd79 wrote: Still, subtracting that information, my paycheck otherwise has decreased about $15 per week, or about $65/month. I got a 3.5% raise in December to offset most of the FICA hit, but am still thinking of negotiating with my cable company for a lower bill or cancelling it all-together and just going with Netflix thru the summer months until football season comes again.
Re: Any change to your 2013 paycheck?
"bicker": hopefully, you were being sardonic. Otherwise, those "best minds" will take you blindly over the financial cliff we're already on. The fact remains most of us non-pundits and congresspeople who actually have to work for a living or survive on a fixed income are now making less money starting January 1. Certain things: your mortgage, property taxes, utlities, transportation, credit and school loans HAVE to be paid for. And not everybody has the access or ability to work more overtime for extra funds. That means something(s) else has to give. (And apparently, according to the "best minds", congressional votes by late spring are going to cost us more out of the paycheck).
Re: Any change to your 2013 paycheck?
Started contributing again to my 401(k) at the 75% rate and to FICA, plus higher HSA contribution plus higher health insurance premiums, so my paycheck is quite a bit different and now in the low 3-figures. I suppose I could have adjust federal income taxes to get the check to zero and avoided the bookkeeping nuisance. Hmmm, maybe I'll do that for next time.
Last edited by livesoft on Fri Jan 04, 2013 7:28 am, edited 1 time in total.
Re: Any change to your 2013 paycheck?
How much is your FICA going up on your Total Bond Market dividend this January 31? I know it hasn't happened yet, but I think you should be able to figure it out. I don't think FICA is going up on my Social Security check.wm631 wrote: The fact remains most of us non-pundits and congresspeople who actually have to work for a living or survive on a fixed income are now making less money starting January 1.
Re: Any change to your 2013 paycheck?
+1.Rainier wrote:Yep, my FICA went up 2%. Looks like my boss used 2012 wh tables, which is allowed.
When he uses 2013 tables, I expect a small increase since the brackets expand for inflation.
Re: Any change to your 2013 paycheck?
sscritic: did your state or local taxes go up? property taxes and/or escrow? electric bill? water? sewer? cable (oh boy, does cable-internet-rising keep rising ...) maintenance costs (to anything!). Then you have less discretionary money. Again, back to the question: where are bogleheads intending on cutting back in 2013 (if they are!)
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Re: Any change to your 2013 paycheck?
Changes to my paycheck will be primarily due to trying to fully fund retirement accounts with new, higher contribution limits for 2013 and due to increased contributions to flex plan to fund health care costs. So:wm631 wrote: Again, back to the question: where are bogleheads intending on cutting back in 2013 (if they are!)
1. I cancelled cable because Comcast proposed a $30/month increase. I had to settle for a $10/month increase to maintain internet.
2. Exploring options for a cheaper cell plan.
Re: Any change to your 2013 paycheck?
Take-home pay is down 13.4% on no change in gross
SS +6.2 percentage points
401K up 18.3% (new higher IRS limit and began "catch-up" eligibility)
Charitable donations through work up 7%
Fed tax withholding down 3% per 401-K increase
State tax withholding down 2% per 401-K increase
SS +6.2 percentage points
401K up 18.3% (new higher IRS limit and began "catch-up" eligibility)
Charitable donations through work up 7%
Fed tax withholding down 3% per 401-K increase
State tax withholding down 2% per 401-K increase
Last edited by MnD on Fri Jan 04, 2013 8:39 am, edited 1 time in total.
70/30 AA for life, Global market cap equity. Rebalance if fixed income <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.
Re: Any change to your 2013 paycheck?
What's a paycheck?bicker wrote:A "raise"? What's that?
Jerry
"I was born with nothing and I have most of it left."
Re: Any change to your 2013 paycheck?
I wasn't attesting to the validity of what they were saying - just that they were saying it. I'm sure reasonable people disagree about what's coming up in 2013.wm631 wrote:"bicker": hopefully, you were being sardonic.
Re: Any change to your 2013 paycheck?
Education:wm631 wrote:sscritic: did your state or local taxes go up? property taxes and/or escrow? electric bill? water? sewer? cable (oh boy, does cable-internet-rising keep rising ...) maintenance costs (to anything!). Then you have less discretionary money. Again, back to the question: where are bogleheads intending on cutting back in 2013 (if they are!)
Two in public college will be significantly cheaper than one in public college and one in private HS believe it or not.
70/30 AA for life, Global market cap equity. Rebalance if fixed income <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.
Re: Any change to your 2013 paycheck?
You wrote making; here are your words:wm631 wrote:sscritic: did your state or local taxes go up? property taxes and/or escrow? electric bill? water? sewer? cable (oh boy, does cable-internet-rising keep rising ...) maintenance costs (to anything!). Then you have less discretionary money. Again, back to the question: where are bogleheads intending on cutting back in 2013 (if they are!)
Are you making less in state and local taxes? Making less property taxes? Making less on your utility bills? I dropped cable years ago, but maybe you are making less on your cable bill.The fact remains most of us non-pundits and congresspeople who actually have to work for a living or survive on a fixed income are now making less money starting January 1.
Income and expense are different words. I don't confuse them, at least I try not to. This thread is about your paycheck. I was trying to stay on topic, but on bogleheads, staying on topic is never a prerequisite to posting.
Re: Any change to your 2013 paycheck?
"bicker": again, most of them are wealthy and/or have pretty nice benefit packages, so the effect isn't quite the same (note to myself, to my 86-year old mother: don't spend all your 23 dollar a month S.S. increase all at once. We need some of it for the increase in your co-pay medical insurance ...) That colors their judgment. "colorado": I agree about the cable. I think as push comes to shove we end up looking at that first, however reluctanly. I know arm-wrestle with Comcast every spring over it. If it gets to be too much to handle, though, guess what? It'll get cut back, severely; if necessary. Overall, that could have an eventual interesting impact on telecommunications, if everybody has to start facing the same conclusion. "Mnd": Interesting, and correct, but my nephew made the perceptive observation that most people aren't "bogleheads". Meaning they live (and will continue to) paycheck to paycheck. 401K are only three numbers and an alphabet letter to them.
Re: Any change to your 2013 paycheck?
sscritic: they're inter-connected, whether you say it's this part of your balance sheet or that. What do you intend on cutting on back on in 2013, if you are? If not, why not? (i.e., pay increase, expected dividends (watch Congress on that ...), increase due loan pay-offs, etc.)
Re: Any change to your 2013 paycheck?
OK, let's start a new thread. What changes have there been in your expenses in 2013 (i.e., since 12/31/2012)? What has gone up or down in the last four days? The only change I have seen is lower gas prices.wm631 wrote:sscritic: they're inter-connected, whether you say it's this part of your balance sheet or that. What do you intend on cutting on back on in 2013, if you are? If not, why not? (i.e., pay increase, expected dividends (watch Congress on that ...), increase due loan pay-offs, etc.)
P.S. My property taxes went up last July, so that's not a new 2013 expense.
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Re: Any change to your 2013 paycheck?
We refinanced our mortgage a few months ago, with savings that roughly match the FICA return to normal (which is what this is, I don't think there could be any reasonable expectation that this tax vacation was permanent).wm631 wrote:sscritic: they're inter-connected, whether you say it's this part of your balance sheet or that. What do you intend on cutting on back on in 2013, if you are? If not, why not? (i.e., pay increase, expected dividends (watch Congress on that ...), increase due loan pay-offs, etc.)
Re: Any change to your 2013 paycheck?
I signed up for a 6 month membership promotion at my local gym (YMCA), offering 6 months and "July" free. This will save me $39 on my usual gym membership for the year.sscritic wrote:OK, let's start a new thread. What changes have there been in your expenses in 2013 (i.e., since 12/31/2012)? What has gone up or down in the last four days? The only change I have seen is lower gas prices.wm631 wrote:sscritic: they're inter-connected, whether you say it's this part of your balance sheet or that. What do you intend on cutting on back on in 2013, if you are? If not, why not? (i.e., pay increase, expected dividends (watch Congress on that ...), increase due loan pay-offs, etc.)
P.S. My property taxes went up last July, so that's not a new 2013 expense.
I also applied for and got accepted for AmEx Preferred Blue Cash Card. I look forward to saving 6% (cashback) on my grocery bills for the year.
Re: Any change to your 2013 paycheck?
But going up quick. We were at $2.99 at the end of the year and today it's $3.22.sscritic wrote:The only change I have seen is lower gas prices.
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Re: Any change to your 2013 paycheck?
My pension, partially indexed to inflation, went up $5/month. I don't think I'll notice. My property taxes are going down by about 5% - after having doubled over the past 10 years.
Re: Any change to your 2013 paycheck?
Mortgage refinancing: me,too. Dropped from 5.38% to 3.25% in December due to some common sense (finally), saving a couple hundred a month, Ironically, that may just keep me even after a few more months of congressional reckoning.
And, a warning on refinancing, the paperwork is still horrendous (I've refinanced in the 1980's and 1990's, also sold a house in 2003, purchased this one in 2005). And, the lender cross-checking seems much more intensive than 2005 (everything for me with this years' could have been cut-and-pasted). Finally, always try to handle the future escrows yourself (meaning handle your own taxes and insurance). If you're disciplined (and all bogleheads are ...) it will save you time and efficincy, which in the end is money.
But, you will save money with it in 2013; even with the slightly rising current mortgage rates. And that will mean a larger (over-all) paycheck, meaning somewhat more discretionary income.
And, a warning on refinancing, the paperwork is still horrendous (I've refinanced in the 1980's and 1990's, also sold a house in 2003, purchased this one in 2005). And, the lender cross-checking seems much more intensive than 2005 (everything for me with this years' could have been cut-and-pasted). Finally, always try to handle the future escrows yourself (meaning handle your own taxes and insurance). If you're disciplined (and all bogleheads are ...) it will save you time and efficincy, which in the end is money.
But, you will save money with it in 2013; even with the slightly rising current mortgage rates. And that will mean a larger (over-all) paycheck, meaning somewhat more discretionary income.
Re: Any change to your 2013 paycheck?
The other variable there is what dates your paycheck covers.
For instance, my employer pays "late." "Pay period" would be, for instance, 12/1 to 12/14. "Pay date" would be 12/21.
Some companies pay at the end of your pay period, others pay later. A paycheck on 1/3 could easily be for a pay period in 2012.
For instance, my employer pays "late." "Pay period" would be, for instance, 12/1 to 12/14. "Pay date" would be 12/21.
Some companies pay at the end of your pay period, others pay later. A paycheck on 1/3 could easily be for a pay period in 2012.
Re: Any change to your 2013 paycheck?
One of my pensions went up $20.60 gross, but the federal withholding went up $2.06 for a net increase of $18.54.
Quiz time: what bracket do they think I am in? (I am not, but that's a separate question)
Quiz time: what bracket do they think I am in? (I am not, but that's a separate question)
Re: Any change to your 2013 paycheck?
aye, caramba - hopefully not one of the upper 2% we have to keep our eyes on. I won't have a figure on my elderly mother's 2013 pensions until the end of this month, but if she thinks she's gonna blow that $23 @month social security increase windfall ...
Re: Any change to your 2013 paycheck?
My wife's pay day was Wednesday 1/2/13 but direct deposit hits on Tuesday and due to New Years she got paid on Monday 12/31/12....at 2013 FICA rates. Is that legal? It was constructively received in 2012, but it is going in her 2013 w-2. Not sure I care.
Re: Any change to your 2013 paycheck?
Keeping your job is the new raise... :/bicker wrote:A "raise"? What's that?
My check did get smaller (2%?-due to SS % reverting to 2010 levels?) and I increased my 401k contribution from 12.5% to 15.5% total. On the right track now.
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Re: Any change to your 2013 paycheck?
Nope,
My pension check not affected.
fd
My pension check not affected.
fd
I love simulated data. It turns the impossible into the possible!
Re: Any change to your 2013 paycheck?
We have a VP who has been quoted off-the-record saying just that.dziuniek wrote:Keeping your job is the new raise... :/
Last edited by bUU on Fri Jan 04, 2013 11:00 am, edited 1 time in total.
Re: Any change to your 2013 paycheck?
What did you give him, a raise?bicker wrote:We gave a VP who has been quoted off-the-record saying just that.dziuniek wrote:Keeping your job is the new raise... :/
Re: Any change to your 2013 paycheck?
My paycheck is going to have a number of changes.
- FICA obviously going up.
- Pre-tax medical will go down. My company didn't switch providers, but they now offer just one plan, because the provider (Cigna) wanted a 50% increase this year to cover two tiers of plans. Lower premium, but fewer benefits.
- I just learned that the pre-tax commuting benefit is going back up, from $120 to $240. This was part of the "fiscal cliff" agreement. Less money in my check, but I save it elsewhere.
- I tweaked my FSA contribution a bit.
- FICA obviously going up.
- Pre-tax medical will go down. My company didn't switch providers, but they now offer just one plan, because the provider (Cigna) wanted a 50% increase this year to cover two tiers of plans. Lower premium, but fewer benefits.
- I just learned that the pre-tax commuting benefit is going back up, from $120 to $240. This was part of the "fiscal cliff" agreement. Less money in my check, but I save it elsewhere.
- I tweaked my FSA contribution a bit.
Re: Any change to your 2013 paycheck?
If I understand correctly, a W-2 lists all wages paid during that calendar year. So, the paycheck dated 1/3/2013 will be taxed at 2013 rates, not 2012.sdrone wrote:The other variable there is what dates your paycheck covers.
For instance, my employer pays "late." "Pay period" would be, for instance, 12/1 to 12/14. "Pay date" would be 12/21.
Some companies pay at the end of your pay period, others pay later. A paycheck on 1/3 could easily be for a pay period in 2012.
- Porcupine
Re: Any change to your 2013 paycheck?
He must've gotten the high chair!sscritic wrote:What did you give him, a raise?bicker wrote:We gave a VP who has been quoted off-the-record saying just that.dziuniek wrote:Keeping your job is the new raise... :/
- Porcupine
Re: Any change to your 2013 paycheck?
I'm comparing with a paycheck from earlier last year, before I hit the Social Security cap. Gross pay is exactly the same, but taxes changed as follows:
* Social Security: increased by 2 percentage points, as expected
* federal income tax: increased by 7.2% (amount of tax, not tax rate)
* Medicare: increased by 1.3%
* CA state income tax: increased by 6.4%
I attribute these increases (other than Social Security) primarily to the difference in FSA withholding: I put aside $4500 last year, whereas this year the limit is $2500. I also set my 401(k) withholding rate slightly lower this year so it won't max out until closer to the end of the year.
Also, not a tax, but I see that (my share of) my medical insurance premiums went up by 10%. Still very heavily subsidized by my employer, so I'm not complaining. Dental and vision are unchanged.
* Social Security: increased by 2 percentage points, as expected
* federal income tax: increased by 7.2% (amount of tax, not tax rate)
* Medicare: increased by 1.3%
* CA state income tax: increased by 6.4%
I attribute these increases (other than Social Security) primarily to the difference in FSA withholding: I put aside $4500 last year, whereas this year the limit is $2500. I also set my 401(k) withholding rate slightly lower this year so it won't max out until closer to the end of the year.
Also, not a tax, but I see that (my share of) my medical insurance premiums went up by 10%. Still very heavily subsidized by my employer, so I'm not complaining. Dental and vision are unchanged.
Re: Any change to your 2013 paycheck?
I expect my net pay to decrease because I am now having 6.2% FICA tax withheld, instead of 4.2%; because I increased my biweekly TSP contribution by $20 due to the raising of the TSP contribution limit to $17,500; and because I increased my FSA allotment by one-third.
I can't say for sure, however, until the payday after next for reasons that are too complicated to explain, complications that have resulted in $55 more being withheld for Oregon taxes than should be withheld.
I can't say for sure, however, until the payday after next for reasons that are too complicated to explain, complications that have resulted in $55 more being withheld for Oregon taxes than should be withheld.
Gordon
Re: Any change to your 2013 paycheck?
I forgot to turn off my after-tax 401k contributions even though my deductible 401k contributions kicked back in.
I also forgot to update my W4 (I was doing 0 allowances + $50 in November/December to avoid under-withholding penalty).
So basically my paycheck was $0...
I also forgot to update my W4 (I was doing 0 allowances + $50 in November/December to avoid under-withholding penalty).
So basically my paycheck was $0...
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Re: Any change to your 2013 paycheck?
I don't get my first 2013 paycheck for 5-6 more weeks. Must be nice to get paid before you do anything
I'm pleased that mine will hopefully be similar to 2012 since the doc fix was passed. My quarterly tax payments, however, will be higher.
I'm pleased that mine will hopefully be similar to 2012 since the doc fix was passed. My quarterly tax payments, however, will be higher.
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