Employers anticipate payroll tax increase
Posted on December 31st, 2012 Read time: 1 minutes
One day before 2013, Congress hasn't answered many questions surrounding the fiscal cliff dilemma. One thing does seems practically certain: Payroll taxes will likely rise after New Years, reports The Wall Street Journal.
The payroll tax rate employers have seen for two years expires today and federal decision makers have stopped mentioning the possibility of extending it.
The rate is expected to increase 4.2 percent to 6.2 percent, meaning U.S. workers will see a large cut into their income. A family earning $50,000 a year would face an additional $1,000 tax over the course of one year, the newspaper explains.
Meanwhile, company leaders and business owners are struggling to develop a plan of action for 2013.
In Akron, Ohio local employers plan to keep their tax incomes at 2012 rates until decisions are made in Washington, reports the Akron Beacon Journal.
John Bickle, president of a local McDonald's franchisee Rubber City McDonald's told the newspaper the situation is frustrating for both employers and workers.
"Everybody hates uncertainty," Blickle told the newspaper. "I would much rather know what my obligations are going to be."
To confront uncertainty positively, employers should consider outsourcing payrolling and HR administration to start off smoothly next year.
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Posted on December 31st, 2012 Read time: 1 minutes
One day before 2013, Congress hasn't answered many questions surrounding the fiscal cliff dilemma. One thing does seems practically certain: Payroll taxes will likely rise after New Years, reports The Wall Street Journal.
The payroll tax rate employers have seen for two years expires today and federal decision makers have stopped mentioning the possibility of extending it.
The rate is expected to increase 4.2 percent to 6.2 percent, meaning U.S. workers will see a large cut into their income. A family earning $50,000 a year would face an additional $1,000 tax over the course of one year, the newspaper explains.
Meanwhile, company leaders and business owners are struggling to develop a plan of action for 2013.
In Akron, Ohio local employers plan to keep their tax incomes at 2012 rates until decisions are made in Washington, reports the Akron Beacon Journal.
John Bickle, president of a local McDonald's franchisee Rubber City McDonald's told the newspaper the situation is frustrating for both employers and workers.
"Everybody hates uncertainty," Blickle told the newspaper. "I would much rather know what my obligations are going to be."
To confront uncertainty positively, employers should consider outsourcing payrolling and HR administration to start off smoothly next year.
