THE BLOG

Salaried Employees Will Earn 2 Percent Less Per Paycheck in 2013

05/15/2013 03:01 pm ET | Updated Jul 15, 2013

As a result of the most recent payroll tax changes, salaried employees will likely earn 2 percent less per paycheck in 2013, notably altering their spending habits and annual income.

Americans saw a payroll tax increase on January 1, 2013, due to the expiration of the payroll tax holiday, a temporary tax break voted into law in the hopes of stimulating the economy.

According to 2013 data from both the National Retail Federation and the Internal Revenue Service, we see that 73 percent of Americans have said their spending plans and household budgets are taking a hit from the change.

Intuit used the data in their recent tax visualization, noting that a household earning $50,000 annually (the 2011 median household income) would essentially be bringing home $1000 less total salary, the equivelant of $83 a month and $40 less each biweekly pay period. Here's a complete look at the research, and how it's not only affecting employee salaries, but their spending habits as well:

2013-05-15-TurboTaxPayrollTaxChanges.png