Social Security withholding

[Huron Angler]

My company just informed us that the percentage withheld for SS is being decreased by about 1/3 of the previous rate.

Does anyone know what's going on with this?

Anyone else have this happen at all?

Not sure if we can talk about this and not be political but I figured I'd give it a shot.

 

[MTboatguy]

Re: Social Security withholding

That was part of the tax package just signed into law at the end of the lame duck session, they reduced the with holding for a while to give people more money on their take home pay, it is not permanent and the rate is suppose to go back up to the normal rate in the future.

No reason to be political, it was just one of the concessions that were made in the negotiations over maintaining the tax cuts..

 

[ajgraz]

Re: Social Security withholding

This is in addition to the payroll tax deduction decrease (or is it the same thing worded differently)? Is it -33% across the board (i.e., for everyone)? Anyone got a link?

EDIT: Ah, nevermind, I got it. It is the same thing, the 6.2% for SS is getting cut to 4.2% for one (for now) year.

 

[Bondo]

Re: Social Security withholding

That was part of the tax package just signed into law at the end of the lame duck session, they reduced the with holding for a while to give people more money on their take home pay, it is not permanent and the rate is suppose to go back up to the normal rate in the future.

Ayuh,... They continued the current Income tax Rates for everybody, 'n cut the SSI rate by 2% for 1 year....

The 2% cut is Obama speak for letting you keep 2% of Your money,...
But it also Cuts your SSI contributions, so it'll still come back to bite ya later...
Especially those about to retire....
Ya ain't gettin' nothin' Extra, you just get to spend it This year, instead of later....

 

[Huron Angler]

Re: Social Security withholding

Ya ain't gettin' nothin' Extra, you just get to spend it This year, instead of later

Well in my case being 33 I won't see a Continental dollar back outta the program...but I can take my 2% and put it in a Roth IRA where I can keep an eye on it, and maybe even grow it tax-free for 30 years(in precious metals/oil ETFs).

 

[1fishbone]

Re: Social Security withholding

Well in my case being 33 I won't see a Continental dollar back outta the program...but I can take my 2% and put it in a Roth IRA where I can keep an eye on it, and maybe even grow it tax-free for 30 years(in precious metals/oil ETFs).

That's a good plan...I don't count on SS, they'll probably up the age limit just as I get close to being old enough.

You should be max'ing out that % while you're young!!

 

[windsors03cobra]

Re: Social Security withholding

It covered the increase in my health insurance, what a nice place.

 

[MTboatguy]

Re: Social Security withholding

Ayuh,... They continued the current Income tax Rates for everybody, 'n cut the SSI rate by 2% for 1 year....

The 2% cut is Obama speak for letting you keep 2% of Your money,...
But it also Cuts your SSI contributions, so it'll still come back to bite ya later...
Especially those about to retire....
Ya ain't gettin' nothin' Extra, you just get to spend it This year, instead of later....

I am pretty sure that is what I was saying

 

[Chris-R]

Re: Social Security withholding

The rate went from 6.2% to 4.2% on the employee side. Your employer still has to pay 6.2% into FICA for you plus you and your employer both have to pay 1.45% into medicare. Keep in mind that congress eliminated the "Making Work Pay" tax credit which amounted to roughly $400 for a single tax filer and $800 for a married couple. There's no great deal here.

 

[Pierutrus]

Re: Social Security withholding

WOW, I feel better already!

 

[tx1961whaler]

Re: Social Security withholding

WOW, I feel better already!

Great! If we feel good about getting borrowed money (that where all of the "tax breaks" for the last 10 years have come from...) that your kids will have to repay the Chinese, then is right!

 

[Vlad D Impeller]

Re: Social Security withholding

There ain't no way in hell we are going to willingly or unwillingly repay the debt , there is going to be a war and the Chinese will end up having to pay us.
Take the measly 2% and go fishing, i guarantee that you won't be thinking about this crap out on the water.
It is what it is "Change" don't change nothin', Dollars do.

 

[sasto]

Re: Social Security withholding

Take the measly 2% and go fishing, i guarantee that you won't be thinking about this crap out on the water.

I'm taking your advice...Vlad D Impeller, another 5 degrees warmer and I'm outta here!

 

[bassman284]

Re: Social Security withholding

Well in my case being 33 I won't see a Continental dollar back outta the program...but I can take my 2% and put it in a Roth IRA where I can keep an eye on it, and maybe even grow it tax-free for 30 years(in precious metals/oil ETFs).

Well, when I was your age (don't you love hearing that?), I was confident I would never see dime out of SS. I just bellied up to the SS trough last May. Not saying you're wrong, but you never know.

 

[86 century]

Re: Social Security withholding

Go to work for a railroad HA and forget all about ss.