Cracking the 2013 Tax Code:
"For 2010-2012, the Social Security tax withholding rate on your salary was temporarily reduced from the normal 6.2% to 4.2%. If you’re self-employed, the Social Security tax component of the self-employment tax was reduced from the normal 12.4% to 10.4%. Last year, this so-called payroll tax holiday could have saved one person up to $2,202 or a working couple up to $4,404. Somewhat surprisingly, the new law does not extend the holiday through 2013. (For this year, the Social Security tax can hit up to $113,700 of salary or self-employment income.)"
I know that my first paycheck this month had $30 less than I'm used to getting, and (since I get paid twice a month) $60 a month is quite a hit for us! I know I'm not the only one, not by a long shot. I shudder to think how those who don't know about this (tax) change will react when they get their first 2013 paycheck.